WhatClinic.com left hand side nav screen shot Vs. WhatClinic.com right hand side nav screen shot

 

Most of the time people run A/B tests in order to try and improve a single metric such as their site’s conversion rate, and they do this on the basis that even if the test fails to show an improvement that they can go back to their original setup and everything will be OK. But what if the original setup isn’t OK in the first place?

In the past we have made the mistake of assuming that just because we tested a theory once in the past that it holds true forever. It’s probably not a surprise to find out that this isn’t always the case, especially on a website that has changed it’s layout and functionality as many times as ours has! So every now and again we test a big change on our site for a few days just to make sure the some of our basic assumptions still hold.

Site Navigation On The Left Or The Right?

For the purpose of this test we wanted to see if having the main site navigation links on the left of the page or the right of the page affected our overall conversion rate. We had run this test in the past and having the links on the left outperformed having the links on the right. Seeing as so much had changed on the site in the meantime we decided to try it again.

Google Website Optimiser Results

The original left hand side navigation layout was a clear winner.

The results thankfully were pretty clear. Moving the navigation bar to the right hand side resulted in a drop in conversion across the site of 11.8%. So the navigation is staying where it is on the left hand side. We’re in good company too – Hotels.com in Europe think the left is the correct side for the navigation on their search results pages too, but maybe Airbnb.com know something we don’t? Their navigation is on the right hand side.

What was the last big change your A/B tested, and what was the result?

Be careful how you handle negative reviews

Online reviews have really taken off over the last 5 years and there are countless studies (here, here, and here [pdf link] for example) showing how they influence consumers’ purchasing decisions.

Similarly, patients looking for a new doctor or dentist are being influenced by other patients who review their treatment online. These reviews present both an opportunity for and a threat to the businesses of doctors and dentists. In this article we will look at how you can protect your reputation and career from negative reviews online.

The Four Types Of Reviewer

  1. Members Of A Review Community (Yelp, Qype, etc) – They have reviewed large numbers of businesses and services and their review style can be easily profiled. Looking back at their previous reviews it is easy to see if they are fair and reasonable, and their reputation is built upon being consistently unbiased. Their reputation in turn adds considerable weight to the strength of their reviews. Some doctors have over 100 reviews on Yelp.
  2. People Who Are Encouraged To Write A Review – Businesses often ask previous customers to review the product or service delivered. For instance WhatClinic.com asks patients to review their treatment experience. As you’d expect there is a fairly normal distribution between positive, neutral and negative reviews.
  3. Superfans – They have had such a great experience that they actively want to share their experience with other people online. These people are very rare and are usually created when a clinic far exceeds the patients’ expectations.
  4. The Very Unhappy – People who for one reason or another feel they have had an exceptionally bad experience.  Thankfully these are also very rare, but in many instances they will try and post their review on as many sites as possible. Unfortunately this means their negative review can affect you and your clinic’s reputation disproportionately.

How To Protect Yourself Online

Everyone gets bad reviews at one stage or another. It’s never nice to see someone talking negatively about your clinic, and it’s even worse when a colleague or patient is the one to bring it to your attention. The secret to protecting yourself from bad reviews though is to start to build your online reputation before this happens.

Negative reviews only have real significant power if they stand alone. Believe it or not single negative review in a sea of positive reviews actually adds authenticity to the positive reviews!

As a clinic owner or manager you should start soliciting reviews now. Find the websites that Google sources its reviews from (including WhatClinic.com) and point your customers to those sites. Print a message asking them to review your clinic online on the back of your receipts and reminder cards, and remember that repeat patients are your best bet for favourable reviews. After all, if they didn’t like you they wouldn’t be coming back. Develop your online reputation now before someone else starts doing it for you in a negative way. Don’t wait until it’s too late.

What To Do When You Get A Negative Review

Most negative reviews occur because the patient feels like they have been mistreated somehow. How you respond to the negative review can either compound their grievance or potentially convert them into a positive advocate for your company. There are two clear steps to follow:

  1. Reply To The Review Online. You need to publically acknowledge the grievance in the same place that the review appears. In fact you should try and reply to all reviews, positive and negative. By replying to negative reviews you are demonstrating that you care about the patient’s issue and that you want to address it rather than hide from it. You should apologise, tell the patient that you are upset that they feel this way, and that you would like to speak to them personally about their issue.
  2. Contact The Patient Directly. You need to let the patient speak at length about why they feel the way they do. You need to listen carefully and suggest a way that you might be able to address their grievance.

Typically if you can manage to resolve the issue the reviewer will be happy to revisit their review and either edit it or amend it. Even if they don’t your online reply at least informs potential new patients that you care enough to try and resolve issues when they come up.

Don’t Make These Mistakes

It’s very easy to make a bad situation worse by reacting without properly thinking through the consequences. Here are some of the most common mistakes you need to avoid when replying to negative review:

  • Do not breach patient confidentiality. Even if the patient publishes personal medical information online, you may not.
  • Do not be confrontational or aggressive.
  • Do not suggest that they are lying or call into doubt any aspect of their review.
  • Do not engage in an online conversation. Reply to the review once and contact the patient directly, you should not discuss with a patient in a public forum even if they want to.

Going Down The Legal Route

If a review is defamatory, then a letter from your lawyer may get the review taken down. This only applies if the website operates in certain jurisdictions though. Most notably it won’t work if the website is based in the US.

Even if you do manage to get the review removed, this kind of action typically animates the reviewer into publishing similar reviews on multiple websites. This not only makes it more likely to be found, it also means you have very little chance of turning the patient’s opinion around. On balance, going down the legal route carries as much a risk of worsening the situation as it does of relieving it.

Actively managing your clinic’s reputation is more important than ever. Be sure you give your happy customers every opportunity to tell the world that they are happy, and start doing it now. When you are unfortunate enough to receive a negative review, deal with it publicly, professionally, and politely, and whatever you do, don’t panic. Share your experiences with online review in the comments below.

Slice of pie

How much do you keep for yourself?

Too many people regard a revenue share agreement with their partners or affiliates as a zero sum game. They think of it as a pie and the bigger the slice the partner takes the less there is left for them.

If this were true then companies would set their sales people’s compensation to zero; after all it’s a zero sum game so why not take all of the revenue?

However this simply isn’t true. It’s not a zero sum game. Every sales organization knows that putting the right compensation package in place actually increases the size of the pie. So, if you pay your sales people a fixed salary only and have sales of €1 million you could conceivably double your sales by adding a 10% commission to your sales team’s compensation.

Everybody understands this simple idea but most instantly forget it when talking to a channel partner or affiliate. All of a sudden defences go up and a confrontational approach to negotiation is adopted. Too often business owners and sales people congratulate themselves after a negotiation where they manage to squeeze an extra 5% out of the channel. The reality here is that it is likely that no value was created and in all probability value was destroyed.

You must give your channel sufficient compensation to motivate them to sell your product. If you don’t they’ll find something else to sell and ignore your product. Give them more compensation and the chances are they’ll sell more of it.

The question everyone negotiating with a partner should be asking themselves is not “How little can I give them?”, rather it is “If I give the channel a greater share will I make more money?”.

Get Realistic About Your Channels Costs

Chances are no one call sell your product or service as cheaply as you can. After all, you know your product the best, you know the end-customer the best and you know how to sell it the best. In just about all cases a channel is going to find it more difficult and more costly to make a sale than you are.

You cannot get your revenue share agreement right without facing up to the reality of how much it costs to sell your product. I personally know SAAS companies that do not recover the selling costs associated with a new customer until well into year two.  This is quite typically in the SAAS world which relies on high levels of customer renewal for profitability.

However, these very same companies conveniently ignore this fact when they start setting channel revenue share agreements. 50% of first year’s revenue, dropping to 20% is thought of as generous. THESE PEOPLE ARE MAD. If they can’t sell it for 100% of the first year revenue themselves and it’s their baby, how on earth is it reasonable or fair to expect a half motivated channel to be able to sell it for 50% of that.

Remember, the channel’s sales people have their own targets to worry about. It might be their monthly or quarterly target, or even their yearly target, but it is never next year’s target. So don’t fool yourself into thinking that a percentage of future revenue is going to do anything to motivate them.

You have to structure a deal that at a minimum motivates their sales people and covers the partner’s total costs associated with making the sales (not forgetting opportunity costs). Once you’ve done this ask yourself the question: “Will I earn more money by giving them a greater revenue share?”.

Tagged with:  

Returning Visitors And Rebranding

rebranding conversion rate impact

Rebranding or natural falloff?

One of the side effects of our rebranding from RevaHealth.com to WhatClinic.com is that visitors who originally came to the site before the middle of August last year generally aren’t aware of the name change. Over the last few months we’ve been going back to visitors who didn’t successfully choose a clinic on their first attempt and asking them to come back and try again. As you can see from the chart above, those who were already familiar with the name change convert significantly better than those who weren’t.

There is of course a natural falloff in conversion rates, as you can see even in the difference between visitors from November and visitors from September, but I’d be inclined to attribute most of the step fall in return visitor conversion to the name change itself. It’s just another thing to keep in mind if you consider rebranding your own website.

Tagged with:  
Glengarry Glenross

Always Be Closing

I’m sure there’s a punchline to answer the question posed above, but the serious answer is this: three.

  • One to get the ball rolling.
  • A second to introduce some internal competition and benchmarking.
  • A third in case the first two leave.

You don’t need lots of sales people at the start, but don’t leave yourself in the lurch either!

Tagged with:  

Google Instant Preview and Analytics

Google’s Instant Preview, which lets you see a preview of the page you’re going to click through to, has been in testing for some time now and was finally rolled out to the world on November 9th. For those of you who haven’t seen it in action before, here’s Google’s own video demonstrating it.

I played around with Instant Preview a little over the last couple of days, and while it looks nice on the page I haven’t found it particularly useful yet. I’ve a feeling it will work well for certain types of search, obviously anything specifically visual related, maybe shopping for product you know already. The level of detail offered in the Instant Preview certainly isn’t sufficent to decide whether or not the content of a given page is useful, so it seems to be trying to promote “good looking” web pages.

Time will tell I guess, but what effect is Instant Preview having on your website right now? For us, you can see from the Analytics screenshot below that over the last couple of days, as more and more people hear about the product, there has been a small spike in what I thought was “weird us traffic”.

Traffic from Google Instant Preview

The traffic can be identified as having a source of (direct) and a medium of (none) in your own Analytics. It’s normal to expect a certain amount of this traffic from all over the globe that Analytics essentially can’t identify, but only our US (direct) (none) traffic has experienced this particular spike.

Normally a little extra traffic would be more than welcome, but in this case I think Google is doing something wrong. It seems like every person who uses Instant Preview is being counted as a visitor to our site, whether they click through or not. Judging from the 91.92% bounce rate of the traffic in question yesterday, this is not a good thing!

Bounce Rate for Google Instant Preview Traffic

The bounce rates above are only for this (direct) (none) traffic from the US, which wouldn’t be a problem if it were just the usual handful of visitors a day, not now that it’s heading towards several hundred with a bounce rate heading towards 100% it could start to have negative effect on the site overall. We work hard to keep our pages’ load times and bounce rates down, knowing that Google takes both into account when ranking pages.

Hopefully this is just an oversight on Google’s part which will be rectified soon, but in the meantime watch out for “weird us traffic” to your site with an abnormally high bounce rate. Let us know in the comments if you’ve experienced it too.

UPDATE 15 NOVEMBER

The UA we are seeing in our web server logs is 5.0+(en-us)+AppleWebKit/525.13+(KHTML,+like+Gecko;+Google+Web+Preview)+Version/3.1+Safari/525.13

UPDATE 23 NOVEMBER

It looks like Google have gotten around to fixing this problem now. We’ve seen the strange traffic fall off today on our Analytics, and Google have just posted this update to their Analytics blog: http://analytics.blogspot.com/2010/11/instant-preview-issue-resolved.html

14 Signs To Use A Door

Too many signs

I love travelling by train. I find it the least stressful way of travelling long distances and it often gives me the head space I need to think creatively. However, on a recent train journey I came across an brilliant example of design by committee that I wanted to share with you.

Most people know how to use doors.  In fact, even my one year old has figured out how to use them. So, for the most part, they shouldn’t need any explanatory notices. I would go so far as to say that door design is a solved problem. :)

However, designers sometimes make mistakes and when they do it is not uncommon for a note to be put up explaining how the door is operated. I’m sure we’ve all encountered a door that would have benefited from a “push” or a “pull” notice because the handle design didn’t make it obvious.

The toilet doors on this Irish Rail train however were totally ridiculous. They manage to use 14 signs, notices and labels to explain how to use their door!

  • On the outside of the toilet there are 2 diagrams on the open and close buttons, 2 separate notices  on fluorescent yellow stickers to explain these labels, and a sign to tell you if the toilet is occupied.
  • On the inside of the toilet there are 3 more diagrams on the open, close & lock buttons and 4 more separate notices in 3 different styles to explain these labels.
  • Then, as if that wasn’t enough, when you subsequently sit down on the toilet there is yet another notice straight in front of you reminding you that you might not have managed to lock the door.

Now all of this may seem a tad excessive, but not to Irish Rail because there is also a audible notice when you close and lock the door. So in total they use 14 signs, notices and labels to tell you how to use a door. I wonder how many people were involved in that decision, and did they ever even speak to each other?

What examples of signage gone mad have you come across?

Tagged with:  

Google Instant Adds 90Kb To Your Search

Google Instant is an amazing piece of technology. However, I imagine, like most techies, the question that first springs to mind is “Oh my god, how much data is this sucking down?!?”

The answer of course is: “it depends”. It depends to a large degree on the kind of results you’re going to see, how many results there are on the page, whether they have maps in them or images, and lots of other factors. It also depends on how accurate the query suggestions are at guessing what you are going to type, since the more accurate it is the fewer times it will have to re-fetch results from the server.

For instance, let’s say I’m going to look up train timetables from Victoria Station, London. I start typing, and when I put in the first letter ‘v’ Google makes a wild guess that I’ll be looking for Verizon and grabs down results for it. So far 13.5Kb of search result data has been sucked down, an increase of just under 13Kb over the non-instant option, which just sucks down the suggested search queries, not the results themselves.

Victoria's Secret

Victoria's Secret not Victoria Station

When I type the letter ‘i’, Google realises I’m not looking for Verizon and decides I must be looking for Victoria’s Secret. That adds another 29Kb to be sucked down, which includes a couple of images. (Which are pretty tame by the way, I have safe search on at work).

Now, 29Kb is pretty small. Google have compressed the data, and since search result data is very compressible it averages about a 70% bandwidth saving, good for what is essentially pure text with some images thrown into the data.

From that point until I get all the way to ‘Victoria St’, my results stay static, since it looks increasingly likely that I’m looking for lingerie. However, there is another 10K pulled down, or about 1.4Kb per keystroke. This isn’t results, just different suggestions being cycled through the list as I type, (vicodin, victoza, victor) but Google is still showing results for what it thinks is the most likely option – Victoria’s Secret.

This behaviour is the same as it is for the existing search suggestions so we’ll discount the data for that. When I’ve got to ‘Victoria St’ Google realises its embarrassing mistake and decides that I must be searching for Victoria Stilwell the famous dog trainer. That adds another 25Kb, again with images encoded into the results.

Victoria Station

Victoria Station

When I get to ‘Victoria Sta’ the penny drops and Google gets Victoria station results, which weigh in at just 11Kb, with no images, and from then on to the end, the results don’t change, except for the cycling dance of other possible auto complete suggestions (victoria stafford, victoria station salem etc.)

In total then Google Instant added 89Kb in downloaded data over and above what a previously standard experience would have required. A tiny test of 20 other random queries from my own search history shows this to be pretty average. Obviously maps and image data which are not in the final result set add to this, but calling it 90Kb extra per search (with 6 queries in the search) seems to be in the ballpark.

This maps pretty well to Google’s own expected figures. They reckon they’ll see 5 to 7 extra search results fetched as a result of an Instant search, and presumably they know what they’re talking about. How much it is used and how accurate it will be is anyone’s guess.

Taking Google’s current round estimate of 1 billion searches per day and 6 as the midpoint of their reckoning of accuracy, and my finger-in-the-air of 15Kb for the data for each extra set of results, we get a pretty measly 85 Terabytes extra of data leaving Google’s server farms and the average UK user, who averages around 4 searches per day, getting an extra 360Kb per day down their internet connection. This is hardly a noticeable amount of data for a corporation that deals in Petabytes for its indexing of the web. Similarly, 360Kb is hardly noticeable for a user with even the slowest of broadband connections.

But is there any point? In all my use of instant so far, it’s felt like no more than a bothersome distraction. I do use Google suggest pretty often for long tail searches, and it’s easy to see if what’s being suggested describes what you want to type.

However, looking down at the search results is a further glance away, and the information takes longer to interpret. It feels unnatural to me. If I’m typing a query string, I’m typing text, so a suggestion of what I am going to type may be helpful.

On the other hand a suggestion of search results for that query isn’t what I have in my mind. It’s another step away from the thought in my brain that millisecond.

Time will tell I suppose, but if Google Instant isn’t an instant hit I’d expect to see it become opt-in rather than opt out for Google users by default pretty quickly.

How have you found using Google Instant so far – do you like it, hate it, or haven’t really noticed it at all? Share your thoughts in the comments.

Tagged with:  

Your Prices are Too Low

In terms of return for time spent, pricing has the best Return on Investment of any activity. In general when it comes to pricing, startups tend to put their finger in the air and set their initial price depending on the direction of the wind. Once they get any sort of market traction, they shy away from price revision from fear of negatively affecting their hard earned business.  However by focusing on price you can increase net profit by 100% or more.

Why is Price So Significant?

In some ways the importance of price is obvious –after all your revenues equal your price multiplied by volume. But it defines your market size as well and therefore the potential of your company/product – this affects your ability to raise funds. It also sets hard limits on how much you can expend to acquire a customer – so by increasing your price by €100 you can afford to spend an additional €100 in acquiring a customer therefore increase volume.

But the real significance of price is that it can have a dramatic and immediate impact on your business with disproportionally little effort. Beware though; this can be positive and negative and it is the fear of the negative that cripples so many businesses.

Know your Price and know the cost to your customer.

Price does not equal cost to your customer.  Your price is typically only a small constituent of the total cost your customer has to bear.  Frequently with web and software solutions your price is only going to be 10% or less of the total cost to the customers. The lower this proportion the more you can change the price without significantly altering the cost to your customer.

For example say you are migrating an existing 10 person sales team from one CRM system to another, your costs would include:

  • Price of new CRM solution: €5,000 (Salesforce year one fees)
  • Training – €10,000 (1/2 day opportunity cost per employee and cost of delivery)
  • Data Migration – €5,000 (SalesForce consultancy)
  • Evaluation costs – €5,000 (Senior Management purchase decision)
  • Integration costs – €5,000 (integration with email, website, partners, suppliers, etc.)
  • Change Control – €10,000 (product management costs to manage the transition)
  • Risk – €10,000 (normally the largest cost but difficult to quantify)

In the above example the price charged by SalesForce only reflects 10% of the overall costs that have to be borne by the customer. So if SalesForce increased it’s pricing by 50% it would only be increasing the customer’s costs by 5%.

Best of all, because SalesForce’s net profit margin is about 10%, they were only making €500 off of the original deal. By increasing the customers cost by only 5% they can increase their Net Profit by €2,500 – a 500% improvement.

It should become obvious here that they ideal solution would be to make the product easier to use and easier to integrate, so that you can start absorbing training and integration costs into your price. This is never as easy in practice as it is on paper because a lot of buyers don’t recognize the importance of all of their costs.

Your Price is too Low

Unless it’s too high. However, one thing for certain is that it is not 100% optimized. How can I say this with such certainty? Because the world is constantly changing and endlessly diverse.  Your prices may have been right for your US X generation male consumers yesterday, but how about today or what about the South East Asia market?

Most start-ups set their initial pricing too low because they lack confidence, or they are setting a market penetration price. This is fine as long as you revise frequently as you get to know your customer base better.

You should always be looking at how you can increase your prices?

Your Must Price Discriminate

If you are not price discriminating then not only are you leaving money on the table but you are also being unfair to your customers. Some of your customers get much more value from your product than others, its only fair that they should contribute more to the cost of developing the product than others. Also a lack of price discriminiation typically means that you are excluding a whole category of customers that would get some value from your product but aren’t prepared to pay your one size fits all price.

Price discrimination is where you charge two different customers different prices for substantially the same thing (or for different things that largely do not affect your costs). Good examples of price discrimination include:

  • Student haircuts – it take the hairdresser the same amount of time to cut a students hair as anyone else’s
  • Old age pensioner pints – after all they get the same pint
  • Airline tickets – How did that guy get a ticket at 50% the price of mine??
  • Flavoured sugar syrup instead of the free sugar in Starbucks
  • Microsoft Windows (student, home, enterprise, etc.) – Although the product here is different for the enterprise version the price differential is disproportionate to the additional R&D effort
  • Lower cost AIDs medication for 3rd world country.
  • Charging per minute of mobile phone time – the operators costs are largely the capital costs of the network which largely are unaffected by your usage. In other word the additional cost to the operator of you talking for an extra minute on the phone is minimal yet the cost to you is high.

What to Discriminate on

There are an endless number of factors that you can discriminate on – everything from customer demographics to product features. Fundamentally you should try and link your price discrimination through to the customer’s willingness to pay.

When Microsoft charge more for Enterprise edition than home edition they aren’t charging more for the feature set. They are trying to segment their customer base into companies and consumers and charge them different prices. The creation of home and enterprise edition is just a crude way of doing this.

In Summary

Pricing is an incredibly important part of a company’s strategy and doesn’t get anywhere near the attention that it deserves. Not only can pricing dramatically affect the dynamics of your business but it also defines the size of your market size.  Take some time today and look at your pricing – can you increase it? Can you segment your market and create a new price point that will either get you more volume or more revenue per customer.

Do you know of any pricing wins, where a new price point dramatically improved a business?

 

There are three things that really irritate me about A/B testing. The first is where people fool themselves by drawing conclusions from too little data. The second is the myth that small changes frequently result in large improvements and the final one is when A/B tests are used to predict an actual percentage improvement when the data just isn’t there.

You Need a Lot of Data

Instructions for WhatClinic.com

The proposed improvement

We do a lot of A/B testing at WhatClinic.com and we like to think we know a little bit about the topic. We recently ran A/B test where we put a section of instructional text at the top right hand side of the page. After 11,000 tests and 400 conversions it clearly showed that the instructions made a 30% difference. It would have been so easy for us to stop there and pop open the champagne and boast about how changing one little thing improved our bottom line by 30%.

Things look Great - 30% Improvement

But we didn’t, we kept the test running, because experience has told us not to draw conclusions too quickly.  We let the test run on for another 90,000 people and 3,000 conversion and you know what. In the end it turns out that there was no substantial difference between the two. That’s right no difference.

The whole point of A/B testing is to learn. Learn what works and what doesn’t work. If you don’t run your tests over a large enough sample size then there is a good chance you are going to learn a fallacy. Not only won’t you be moving forward but you will actually be moving backwards and decreasing the value of your company.

Where did my 30% improvement go?

So what if you don’t have the traffic to do A/B tests? Well don’t do them. Do user testing. Get people in and ask them to use your product. You’re going to get a lot more information a lot faster and have a higher degree of confidence in the results.

Small Tweaks rarely makes Substantial Differences

I read about these all the time. You know the type of story – “I changed the colour of a button and increased conversion by 25%”. They read great and play into a pleasant dream that riches and fortunes are just a colour change away. However, in my experience small tweaks have never made a substantial difference to conversion.

It should come as no surprise to you that in order to substantially change user behaviour you need a substantial change to the site. This doesn’t mean that it never happens. However, I suspect that it happens rarely and the bulk of the time it is reported on blog and forums that it is the result of drawing conclusions from too little data or just plain old link baiting. Unfortunately the truth is normally all too boring.

A/B test don’t tell you how much better one page will be over another page

A really common misconception is to think that A/B testing can show you how much better one version of a page will perform over a different version of the page. IT CANNOT. A/B testing can only give you a confidence rate of whether one page is better than another and the observed historic improvement.

Highly advanced A/B testing can tell you a confidence rating of whether there will be a 5% improvement or a 10% improvement, etc, but it cannot tell you what the actual improvement will be. Too often people are fooled into thinking that just because they have observed a 30% improvement during the test that there will be a 30% improvement in the future. Whereas the actual results of the test is that version A has a 93% chance of being better than version B – note no prediction of how much better

Let me know of any examples you have where A/B test have first shown one thing then the other.  I know James Kennedy from voiceover Ireland has one on his blog here

Correction

It has been pointed out to me that the above example only shows a 20% improvement, not a 30% improvement.  Sorry for the mistake

 
© 2010 WhatClinic.com Blog