How I Increased my Profit by 150% in 2 Months with Multivariate Testing

I previously did this as a presentation at a Brisbane internet business meetup with great feedback, so I’m also putting it online as an article.

Slide 1
  • You should understand these three definitions before reading the rest of the presentation.
Slide 2
  • This is the rough structure of the case study website. It will be kept private since it’s a profitable topic.
  • In summary, it compares three products, like a product review.
Slide 3
  • This is a useful chart, the break even chart.
  • Assuming a static revenue per sale and static ad CPC the break even point is dependent on conversion rate.
  • You can project your ROI for various conversion rate targets.
Slide 4
  • This is the data used to create the break even chart. You can now create one yourself.
  • e.g. 1000 visitors at $1 CPC costs $1000. 1% conversion rate of 1000 visitors is 10 sales, at $40 per sale that is $400 revenue and $600 loss.
Slide 5
  • In my case I did 2 months of Multivariate Testing with 500 uniques per day. It led to 48.3% more click throughs to the product, leading to a similar amount more revenue.
  • It took only about 10 hours of work over 2 months to achieve 48.3% more revenue per visitor.
  • The extra revenue per visitor allowed me to scale up the advertising profitably to increase profit by $600 per day.
Slide 6
  • Headings have a great effect on your visitor. Visitors decide whether to stay or leave based on the heading.
Slide 7
  • Trust also plays a big part in conversion rate. So use testimonials, warranties, badges etc.
  • Pick a good product photo, maybe of somebody using the product.
Slide 8
  • Test these other things too, maybe one will increase your revenue by 10-20%…it’s worth the effort.
Slide 9
  • Google Website Optimizer is a really good tool and it’s free. It does both AB tests and Multivariate tests, so go and bookmark it.
Slide 10
  • Here is a checklist of things to test. If you test them all you could easily increase revenue by 50%.
Slide 11
  • A 50% increase in revenue is very achievable. Once you reach 50%, go for 100%, test some more.
  • Optimizing your ad campaign can increase your revenue by a further 100%, but that is another topic.
Slide 12
  • One last thing. If you don’t know what to test, ask your visitors what they want.

0 responses so far ↓

  • There are no comments yet...Kick things off by filling out the form below.

Leave a Comment