Maximizing Profit and Improving your Pricing Strategy with A/B and Multivariate Testing

Maximizing profit and improving price strategy

Fabio, co-founder of Senkai Labs, talks about how to maximize profit and improve pricing strategy with testing. Here is the summary of his post:

If we don’t have a CRM backing up the pricing strategy and generating some kind of pricing insight, we can actually use user testing tools (A/B and multivariable) to find out the right price range yelding the highest revenue per clic (RPC), thus helping us to maximize our ROI and online advertisement spending.

We focus on this KPIs because that very price, if referring to on/offline business, could not provide the same advantages in a offline environment: revenue per visitors refers strictly to the online side of the business, linking online advertisement spending to actual conversions.

Considering that a lower price generates a higher conversion rate, revenue per visitor goes up, until elasticity to price seems almost irrelevant. Tracking the correlation in between price and revenue per visitor we can actually maximize overall profit, finding the right price (or the right price range) yelding the maximum ROI per visitor, hence giving us a pretty clear idea on the elasticity to price of our prospect.

Learn more about Maximizing profit and improve your pricing strategy with a/b and multivariate testing on SEMWired.

How to Use ‘_set’ in Google Analytics (don’t lose your transactions any more)

This is an article about the Google Analytics feature ‘_set’ with the permission of the Author: Natzir Turrado, online marketing expert. Original title: Cómo utilizar ‘_set’, una nueva función de Google Analytics.

Google Analytics launched few months ago a new feature called ‘_set’, the problem is that there is no documentation whatsoever (not by Google itself). This article will focus on the solution (or one of them) to the total loss of the transactions in some of Analytics profiles (with filters) from September 2012.

Disclamer: this article is very technical. Who is it for? Someone who is tracking an ecommerce with Google Analytics, works with virtual pages and uses filters.

Background: Until september of last year, the number of hits of the ecommerce on Google Analytics weren’t associated with the dimension of the page or hostname, so any filter based in those dimensions wouldn’t affect the collection of transactions. Now, when a transaction is launched the hits of the ecommerce include the title of the page (utmdt), hostname (utmhn), URI (utmp) and the keywords used in the internal search engine. Wherewith any filter that works with these dimensions would remove the ecommerce transactions.

That is to say, this parameter utmp from the transaction is proper of tracktrans and collects the real URL of the page and it’s affected by the filters. And also, is no possible to edit (or nearly as seen below) as we normally do with pages to add the logical or virtual part.

Example: Suppose we want to create a profile based on language, ie a profile that collects the consumption data for Spanish content and being our addresses so: uri?virtualpage=/id_es/

  • If we do a “include” filter with the logical URL (includes all that contains “/id_es”), we will lose the ecommerce data since this URL do not have any logical part.
  • If we do a “exclude” filter with logical URL (excluding all that contains “/id_es”) we are including all the URLs without logical part and therefore the entire ecommerce data appear regardless of the language or the language version of the site where the transaction is made.

The method _set

So one solution to this is found with the new method ‘_set’, that what it does is change the way we will register a page from that time, regardless of whether it is a trackpageview, trackevent or tracktrans. It would be like saying, “from now on that page is called X”.

Its operation is as follows:

_gaq.push(['_set','page','/name-of-the-page']);

This way, the Google Analytics Tracking Code for a transaction will look like this:

var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-XXXXXX-X']);
_gaq.push(['_set','page','/apples/page.html']);
_gaq.push(['_trackPageview']);

_gaq.push(['_addTrans', 'apples-1234', '', '12']);
_gaq.push(['_addItem', 'apples-1234', 'SKU-ABCD', '', '', '12', '1']);
_gaq.push(['_trackTrans']);

Also if we want we can also change the title of that page, not only the URI as follows:

_gaq.push(['_set','title','Title name']);

With this we can have a logical title associated with an ecommerce.

And the same for the events. For example, suppose that you are launching events over virtual pages from a buying process that maintains the same URL on all the steps. What happens is that you will not be able to see exactly what page has been launched that event. So in that case it will be OK to use the ‘_set’ method, thus the event will be automatically associated to the page you choose.

GAUC Barcelona 2013

Next May 28, 2013 will be held in Barcelona another edition of Google Analytics User Conference (GAUC) in Spain, co-organized by Google and The Google Analytics Certified Partners in Spain: Watt, Metriplica, Webanalytics, Overalia and The Cocktail. This year will be in Barcelona, at the Cibernarium.

Agenda: in this edition of GAUC 2013 in Barcelona will be about the future of analysis, with a plenary session given by Paul Muret, Chief of Engineering in Google. Pere Rovira (Webanalytics) will show a real case of offline tracking with Google Analytics, Ander Jáuregui (The Cocktail) will perform a Workshop about Google Tag Manager, Jaume Clotet (WATT) will talk about Mobile Analytics and the tracking of Apps with Google Analytics, and the last speaker Guillermo Vilarroig (Overalia) will show us how to use the new features of GA: costs, multi currency and enhance attribution campaigns.

Who is it for? The GAUC Spain is designed for specialists who want to know what’s new in Google Analytics, for companies that have been started in using Google Analytics and for all those who want to know more about the possibilities of this tool and want to take advantage of opportunities Google Analytics provides to your online business.

Benefits of attending

  • Meet experts and other users of Google Analytics
  • Share your experiences with the tool – get help and help others
  • Meet and socialize with team members and Google Analytics Certified Partners that will answer your questions and concerns
  • Improve your knowledge and skills with Google Analytics through practical workshops so you can immediately apply to your site everything you learn.

20% discount if you buy your ticket in April, more info: http://www.googleanalyticsconference.es/.

Web Stress: How our brain perceives page load times?

Why exactly do we crave a faster online experience? Is this craving learned or acquired? And to what degree, if any, can it be overcome?

Joshua Bixby, VP Application Acceleration at Radware, summarize some of the most important studies about web performance and how and why is load speed is so relevant for page views, conversions, revenue, and every other KPI you care about.

How your brain perceives page load times

See the rest of the infographic

Email Open & Click-Through Analytics from over 80 Billion Emails

From Quora:

Open Rates are Skyrocketing: Over time we are consistently seeing that email open rates are increasing – meaning that folks are looking to derive value from the brand experience in the email. Email Marketing has evolved considerably in the past 2 years and CTA rules have become decently standardized in the templates promoted by the platforms. What does this tell us:

  • Subscribers are looking to engage
  • It’s the job of the retailer to deliver value inside the email
  • They are opening the email, which means that you need to utilize that opportunity to form a relationship beyond product

Click Rates are Dropping: Although open rates have increased fairly consistently, we see that click rates are dropping. Email design has improved, but the content has been dramatically dumbed down to optimize for the CTA click. Groupon & Gilt Groupe have basically destroyed the low hanging fruit of blatant prostitution of subscribers emails with the volume of deals & people are searching for value.

Subscribers keep opening the email searching for value but don’t receive it and bounce. It’s like continuing to open the fridge when you’re bored – the Retailers simply don’t get it (but more on that tomorrow)

Editorial Emails Deliver Value: Editorial emails are that provide value to the reader without a purchase & have nearly a 50% higher open rate & 100% higher click rate. Why? Because:

  • you are delivering value to the subscriber
  • developing your brand dialogue
  • forming a positive feedback loop for opening a dialogue
  • building trust

Once you nail these things – you can sell people shit! But more that on that tomorrow.

Marketing Email are Lame: Marketing emails are those that try to get you to buy something like a 30% off coupon code. Retailers who constantly barrage readers with marketing emails (*cough* Bonobos *cough*) are just lame. Constantly receiving emails like this is like some dude at a party who won’t shut the fuck up about himself.

The prevailing logic is that these constant emails can be optimized to find the right time to buy & to interject your brand into the workflow by building mindshare for when they want to purchase. The problem is that people don’t want to buy from you every week & not delivering value (i.e. no click) means that you will progressively annoy people to unsubscribe.