Most companies make substantial investments, relative to their revenue, in lead generation activities, such as advertising, online marketing and sales promotion. The intent is to drive traffic to their locations or websites or to make their phone ring. However, few invest in optimizing the results of those investments.
An effective and inexpensive method of optimizing the results of lead generation (promotion) is conducting an A/B test. Most often used by direct marketers and Internet advertisers, an A/B test is conducted by distributing concept A (the control concept) to half the audience, and concept B (the test concept) to the other half. Then the results are tracked.
Decades ago, this technique was pioneered by direct-mail marketers. They would split their mailing list in half and send out two different versions of the same mail piece to determine the optimal combination of headlines, hooks, messages and images.
We’ve used this technique for many clients. After the results of an A/B test are tabulated, we take the winning concept (as the new A concept) and test another element (by developing a new B concept). We continue the process until we have optimized each element of the promotion (headline, photos, graphics, copy and colors).
This A/B testing process has become a standard for optimizing website page click-through and conversion rates. Google’s Website Optimizer is a free tool that automatically splits your website traffic, sending half to landing page A, and half to landing page B. Then you analyze which page delivered the best results, in terms of visitors taking the desired action (click-through, opt-in or sales conversion).
There are three primary benefits of A/B testing. First, it measures actual behavior where a test group does not. Second, it generates revenue because you are distributing actual promotion, so A/B testing rarely ends up being an expense. Third, you can use the results to optimize all of your promotion, not just the mail piece or webpage used in the A/B test.
As an example: when one copy point or feature beats out another in a direct-mail A/B test, you could use that knowledge to strengthen a product sheet. When one photo beats out another on a webpage A/B test, you could use the best photo in your newspaper advertising.
It is important in A/B testing to change only one variable per test to isolate the element that made the difference. In other words, you would never test two different headlines and two different images in the same test. Only test one element or change at a time.
You can set up a simple A/B test by reviewing your website landing page (home page) and choose one element you want to test. I recommend you test your call-to-action (CTA). Your landing page does have a CTA, right? If not, adding a CTA will be your first order of business.
Your CTA can be a simple as “click here for a fee tip sheet” or “subscribe to our free e-newsletter.” You want to test an element of the page that elicits a visitor action so you can track conversion.
Once you’ve determined which CTA to test, and the element you want to change, e.g. copy, color or graphic, sign up for Google’s Website Optimizer (it’s easy and free to set up your account), and follow the guidelines in their Testing 101 page.
When it comes to optimizing the results of your lead generation investments, little changes can make a big difference. Begin with a small test and track your results. You’ll quickly become an A/B testing whiz and make more money in the process.
Andrew Ballard is the president of Marketing Solutions, a local agency specializing in growth strategies. For more information, call 425-337-1100 or go to www.mktg-solutions.com.
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