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Hack Your Way To A Better ROI

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Before diving in to today’s content, I thought I’d share TWO things:

1. Our brand new copywriting manual…

“101 Hard-Hitting Conversion Hacks That Pro-Copywriters Would Rather You Did NOT Know About”

You can download that by CLICKING HERE, or by using one of the other links in the blog post below.

2. A personal update, it’s been a while since I did that.

If you want to skip the small talk, scroll on down…

Right now, as I write this blog post, I’m sitting in a chalet in the French Alps (right on the border of Switzerland), in a small ski town called Morzine. Here’s my view…

Aidan Booth

This is one of my favorite places on Earth.

My wife and I did a ski season here in 2010, then came back for a month in 2015, and are here for another month now (this time we’re here in the Summer)!

I’ve said it before… but for me THIS is what’s so amazing about running an online business.

Having the freedom to live life on your terms.

To choose where you live, choose when you work, and have no limitations on how much you can grow your business…

Just being here inspires me.

Anyway, enough small talk, let’s get in what matters today, hacking better results through split testing!

How To Hack Your Way To A Better ROI Through Split Testing

When most people think about split testing, they tend to think about increasing a conversion rate, or increasing a click through rate. While these things are part of what you ought to be doing, they shouldn’t necessarily be the main focus.

What we focus on is OCV, Optimizing Customer Value (sometimes also referred to as CVO, Customer Value Optimization).

If you’re trying to make money from your online business, then OCV is a CRITICAL component, and split testing is brilliant way, one of the best ways, to systematically optimize customer value.

How Joe Increased Net Profit By 58%

Consider the following example:

“Joe sells iPhone cases on his website. He gets 100 visitors each day, and makes an average of $100/day. His average customer ‘front end’ value is therefore $1 (front end refers to the immediate sale, it doesn’t take repeat sales into consideration). Over the course of a year, Joe makes $36,500 in sales.

But Joe has some expenses…

He pays $5,000 per year in advertising, and $10,000 in product costs (actually buying the physical products that he’s selling). His net profit is $21,500.

Keep in mind his average customer value is $1, that’s the important metric he’s working on here…

Joe is determined to earn more from his site, so he starts optimizing. He decides he will charge $0.50 more for shipping on each order, changes a couple of headlines, adds some well thought out product descriptions, speeds up his website load time, and optimizes for mobile devices.

After a couple of weeks, Joe is still getting 100 visitors each day, but is now making $140 per day. His costumer value is now $1.40, and over the course of a year, he now makes $51,100 in revenue.

His costs have stayed fairly similar. He still has $5,000 in ad spend, and his product costs have now increased slightly to $12,000, because he’s selling more units. His net profit is now $34,100.

Previously, he was netting $21,500 for the exact same amount of traffic. By implementing a few smart tweaks, and focusing on OCV, he’s increased his NET profit by a whopping 58% (he’s earning an EXTRA $12,600 profit each year)!”

This little story is something we’ve seen play out over and over again with online businesses. People who focus on OCV always tend to do much better than people who just cruise along accepting whatever metrics they get.

It makes no difference what your online business model is, if you want to make money, then OCV is a vital metric that needs your attention.

So how can you affordably work on your OCV on a part-time basis?

The answer is to leverage tools.

We use a combination of two main tools:

Disclaimer: We have no affiliation with VWO whatsoever. We simply love using it and have used it for many years. BlackBird however, is owned by us. We think it’s a great tool, superior and more complete than any others on the market. Hopefully you agree!

Let’s talk about VWO first. VWO is a tool we’ve used for years for OCV projects. It works with any platform, EXCEPT Amazon.com.

If you’re selling on Amazon.com, then you’ll need something like BlackBird, we’ll get in to that soon. First though, let’s take a closer look at what VWO can do, and how it does it.

Have you downloaded 101 copywriting hacks yet? If not… Click the link below!

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A/B Testing

Screen Shot 2017-07-03 at 10.09.28 AM

A/B testing is the process of creating variations of your website landing page, sending traffic to each different variation, and seeing which one results in the best customer value. This is a great starting point for anyone looking to dive in to split testing for the first time.

Multivariate Testing

Screen Shot 2017-07-03 at 10.11.53 AM

Multivariate testing is when you test multiple changes to a webpage all at once. This type of testing is almost impossible to do manually, as there are so many permutations and combinations you could show someone. VWO makes it easy :)

Split-URL Testing

Screen Shot 2017-07-03 at 10.13.58 AM

This is similar to A/B testing, only that you’re sending visitors to two different URLs, and seeing which one performs best. Unlike Split-URL testing, A/B split testing can be done on one single URL, by dynamically making changes to the way the pages are displayed. Without a tool like VWO, split-URL testing is the easiest way to get started.

Recent Examples

Below is an example showing three different landing pages in one of our online marketing lead generation funnels.

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Clearly variations 2 and 3 are performing MUCH better than the original design… in fact, almost 20 percentage points higher (55.95% conversion rate compared to 36.5%).

The difference here is actually much more than a 20% increase… the original conversion rate of 36.5% has increased by 53%! Since the amount we pay for traffic stays constant, it means we get MANY more leads for the same cost.

And here you can see the metrics, as taken from inside VWO.com:

Screen Shot 2017-07-03 at 10.38.03 AM

NOTE: The ‘Control’ in the image above is referred to as ‘Variation 1’ in the previous image. Variation 3 and 4 above is referred to as Variation 2 and 3 in the previous image.

What About Split Testing On Shopify?

Here’s an example of one of our Shopify campaigns where we’ve used VWO to increase earnings per visitors from $0.88 to $1.16 over a 20-day period (an increase of 32%).

Screen Shot 2017-07-03 at 11.03.02 AM

From the above chart, you can see the following:

The ‘Control’ generated $676.83 from 768 visitors, a value of $0.88 per visitor.

‘Variation 1’ has earned $909.89 from 779 visitors, a value of $1.16 per visitor.

Remember… this is over a period of 20 days, where we’ve received 1,547 visitors, that’s 77 visitors per day.

If you keep the traffic coming in at the same rate, here’s how it looks over a period of a year:

Original (Control): $0.88 x 77 visitors x 365 days = $24,732
New Page (Variation 1): $1.16 x 77 visitors x 365 days = $32,602

That’s a VERY healthy gain for 10 minutes work :)

How to use VWO?

VWO have plenty of information on their website showing exactly how to use the tool and set up tests, they also have a very responsive live support team who can help you at each step of the way.

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What About Amazon?

VWO does not integrate with Amazon, so you can’t use it to split test Amazon listings. That’s where BlackBird comes in :)

If you’re unfamiliar with BlackBird, you can find out more information here: http://www.blackbirdsuite.com

In a nutshell, BlackBird is designed for people who sell their own products on Amazon, and it provides them with:

  • In depth Amazon white-label training
  • Product Research software
  • Customer Relationship Management software (to automate the sending of emails)
  • Advanced product tracking (and the ability to spy on competitors)
  • On-Page performance analysis (and critiques)
  • Negative alerts
  • Strategic “Grab a Guru” support
  • Split testing
  • Financial Management (coming this month!)
  • And a lot more!

The key module we’re discussing today, is the Split Testing module.

Here’s a video that shows how easy it is to set up split tests on Amazon products from within BlackBird:

 

As you can see, BlackBird makes it EASY to split test product pages and increase profitability.

Split testing is something that every single Amazon seller should be doing. It doesn’t matter if you’ve launched your first product today, or if you’ve been selling on Amazon for years, you always need to be split testing, and it’s never too early to start.

To learn more about BlackBird, go here: http://www.blackbirdsuite.com

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Things To Keep In Mind…

Split testing is about find statistically significant winners.

The very first thing you need to figure out though, is what should your objective be…

Are you aiming to get subscriptions? If so, can you go one step further and measure revenue generated from those subscribers?

Are you trying to boost your Amazon sales? If so, perhaps you should re-think your priorities… sometimes it makes financial sense to make FEWER sales at a higher margin, so what you should really be aiming to achieve is a higher net profit.

What if you’re selling physical products on your own website? Then focus on average value per visitor.

Measurement is key, but ONLY when you’re measuring the right thing.

Statistical significance is also critically important. If you flip a coin three times, it might land on heads all three times, this doesn’t mean it’ll always land on heads though, it’s not a statistically significant test.

Tools like VWO and BlackBird do all the heavy lifting for you. They use the Chi Squared formula (https://en.wikipedia.org/wiki/Chi-squared_test) to figure out when something is statistically significant… believe me, unless you’re a Math Mastermind, this is NOT a formula you want to get in to!

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Leave A Comment!

We’d love to hear your thoughts about all this, and if you’ve got any experience split testing, please let us know how it went for you (and share any tips for other readers).

Until next time, thanks for visiting.

Aidan Booth

Like what you’ve read?

If so, then click the “GET STARTED” button below. I’ll send you my FOUR 'Passive Income Blueprints' and more great content (100% FREE, no strings attached).

19 Comments so far:

  1. David says:

    That example using Joe really hammered home a few things for me, I’d never really thought about how a small increase in customer value could have such a big impact on my bottom line.. thanks for this, very timely.

    • Aidan says:

      Hi David, yes.. it’s quite amazing how that all works, it’s so so important, crazy that most people overlook it entirely.

  2. Jeremy says:

    You always have good food for thought Aidan. I’m not quite ready to start split testing my 100k Factory sites, but I will be very soon, and will definitely be using VWO. thanks

  3. Shannan says:

    Just got the copywriting doc, thanks! Do you have a general formula you use for creating your ads, such as FB ads, or do you just kind of build them based on your experience?

    • Aidan says:

      At this stage I just do all my ads almost automatically.. I don’t use a specific formula. I’m sure we could put together a formula though, based on what works best. I’ll add it to my to-do list :)

  4. Keith says:

    There are many changes that could be split tested. How do we know which change to start with? Any insight to share, eg. Start with pictures.

    • Aidan says:

      You want to start with the big things that most people will read/see. For example, title, bullet points, image, description, layout… etc. In the example of the Ranking Factors Checklist, you can see that JUST by changing the image and switching the layout a little resulted in an enormous improvement.

  5. Hi Aidan

    Thanks for such a great post! I simply love any form of quantitative analysis especially when it allows me to understand what my customers like and don’t like. It’s as close as I get to talking to them face to face ‘over-the-counter’ and is invaluable intelligence if I want to improve my sales and my products; whatever they may be from time to time.

    I have just begun to create my own information product with the help of LBE and RRP so I now know where to go when I want to test my online marketing lead generation funnel landing pages and also now see how I can test.

    I didn’t quite understand the difference between A/B Testing and Split-URL Testing as I thought my links would have to be different URLs anyway so I guess I need study this closer when the time comes.

    Thanks again and enjoy your wonderful holiday with your Family
    Sally

    • Aidan says:

      Hi Sally, great to hear you’re moving forward with LBE. Regarding A/B and Split URL testing, in reality, they’ve very very similar. For A/B testing, VWO only uses ONE page, and makes dynamic changes on that page in order to test. For split URL, you always have two pages. The result is basically the same though, so either way is fine to test.

  6. Edward says:

    I’ve been on your list for many years. Every time you publish a new pdf, like the one offered on this page I come here and sign up to receive it but I’ve yet to receive ANY of the pdf’s you’ve offered on this website. Furthermore, if someone is already on you list, why do we have to enter our email information again and again. Someone needs to fix the issues this website has so that when I sign up to receive a pdf, I actually get the pdf.

    • Aidan says:

      Hi Edward, unfortunately, I think the issue is at your end. We’ve had over 3,000 people already download that PDF, and no-one else has mentioned any issue. Why do you need to opt in again? Because this is a lead magnet. It’s designed to get new leads who are not already on the list. By opting in again you are not added to a new list… you’re simply opting in to get the PDF. In my opinion, this PDF is pretty darn good value… and it’s FREE.. I hope you can see this…

  7. Mel West says:

    Great food for thought and things to keep on the horizon. I can’t wait to get to the place in my online sales where I can split test.

  8. Jay Donaldson says:

    Can’t get past the “click here to continue” pop-up. Not getting the free download.

  9. SHAKIRU says:

    HI Aidan,

    My name is Shakiru from Nigeria.Thank you so much for giving fabulous post.I appreciated your efforts and

    sincerity.Enjoy your superday with your family.

    All the best

    Shakiru

  10. Norval says:

    On reading “Optimizing Customer Value”, I completely misunderstood the phrase. At first I thought OCV was going to be about providing more for the customer not getting more out of them! Once over that, the article was very helpful.

    The original assumption, however, is another way of optimizing customer value, is it not? If they like the content on the site and find it informative, they are far more likely to visit again and hopefully purchase something that is on offer.

    Thanks for all your advice here and elsewhere. I’m working through the 100K Factory at the moment and look forward to using these techniques in optimising sales (and profits)!

    Incidentally, I live in Switzerland, about three hours drive away from Morzine and go to the Portes du Soleil frequently. It is a great place. I would happily drive there just to shake your hand, say thanks face to face and buy you a drink!

    Have a great time in “La Belle Hexagone” with your family.

    • Aidan says:

      Hi Norval, yeah, I know what you mean about OCV, the good news is that when you improve customer value, you actually earn more anyway.. so a better customer experience goes hand in hand with you making more money, it’s a win-win :)

      Would be great to meet you in person, email me to support@blueprintcentral.com (say ‘Attention Aidan’), and we can look at working something out :)

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