Understanding Goal Trees for Effective Optimization Strategy
Aligning testing efforts with company goals is crucial for success. Utilize goal trees as a map of critical metrics, breaking them down into focused objectives for impactful testing. Learn how to structure and build your own goal tree for optimization success. Explore common advertising models for further insights.
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Presentation Transcript
Goal tree MEDIA (PUBLISHING) When you build an optimization strategy, you ll first align your program s testing efforts to your company goals. We recommend that you start by focusing your program on achieving quick wins with impactful tests that affect the bottom line. A goal tree is a map of metrics that are critical to your company s success. Break each of these metrics down into focused objectives that your program can move the needle on, through testing and personalization. Read this article to learn more about goal trees.
Before you build a goal tree, let s take a look at the structure behind it. Compan y Metric Your company metric measures a high-level goal: an increase in revenue for example. Goal trees help you define the strategic KPIs that your program will optimize through testing and personalization. Each business unit takes a different approach to that metric. For example, the Marketing department might focus on increasing the revenue per visitor (RPV). Business Unit Notice how the company-level metric cascades directly into experiment-level goals. Optimizati on Goals The optimization program breaks down a major KPI such as RPV into more focused targets, such as average order value (AOV). Individual experiments test ways to create lift in the metrics that matter to the program. One might improve the AOV by optimizing the average order quantity, for example. Experiment Goals
EXAMPLE Goal trees break metrics down mathematically. Take a look at a category: Revenue per Visitor, for example. This is the root for two branches: Average Order Value and Conversion Rate. Notice how the branches multiply to equal the root. Average order Value x Conversion Rate = Revenue per Visitor. Revenue: $2.0m Revenue Per Visitor: $1.00 Visitors: 2.0m Use this method to create your own goal tree. Average Order Value: $50.00 Conversion Rate: 2.00% User User retention 33% acquisition: 1.5m Average quantity: 2.00 Average per unit price: $25.00 Cart Checkout Rate Add to Cart
Build your own tree Identify the goal tree that aligns best with your own. Modify it to align it to your own company and program goals. Begin at the top of the tree What does your company do to generate revenue? How does each metric break down into a smaller set of metrics? Remember! Each set of branches should equal the value of the root it springs from.
Common advertising models CPC CPM Affiliate Paid per advertising click Paid per offsite conversion Paid per ad view Paid per ad clicked
Cost per click (CPC) CPC CPC (ads) (pageviews) Ad Page Views Ad Page CTR Ad Views Ad CTR Ad CPC CPC
Cost per minute (CPM) CPM Percentage viewable Ads served CPM Off-site conversion Audience valuation CTR
Affiliates CPM Ads CTR Value Off-site conversion
News & Media Revenue Revenue Per Visitor Visitors Display Video Ads: Brightcove Advertising (DFP) CPM Viewable Ads Sponsorships Affiliates Users Engagement Money vertical: Top 10 products on Amazon Skim-links Ads served per page User acquisition: 60% mobile % viewable CPM Outbrain Retention Off-site conversion Audience valuation Landing Page Optimization CTR Social shareability Article readership App downloads
Hybrid: Ads + Subscriptions Revenue Advertising Revenue (Viewable Ads) Subscription Revenue Ad Revenue Per Visitor Customer Lifetime Value Visitors Customers Monthly Recurring Revenue User Ads served per page Customer Lifetime Conversion Rate User retention % viewable CPM Visitors acquisition Off-site conversion Audience valuation Initial Deal Size Avg. # of Steps Completion Rate User CTR Net Expansion Churn User Retention Acquisition
Goal mapping Once you identify the KPIs your program will target directly, you ll be able to hypothesize strategies and tactics that make an impact. Use strategies and tactics to create meaningful experiments and campaigns.
Goal Mapping Add to Cart Goals Emphasize the Primary Call to Action Communicate Unique Selling Points Minimize Distractions Design Intuitive Navigation Market Products Effectively Build a Sense of Urgency Strategies Establish a visual hierarchy Select/target the right USP s Use a clear, consistent layout Test ideal product visuals Wording / messaging Show quantity left Structure, naming, and order of sections Remove non- critical content Use the right review systems Push Location / size Refine the messaging Tactics temporary offers Design / color / iconography Find ideal description text / length Promote buying before set times Limit number of choices Communicate visually Use iconography
Goal Mapping Goals Cart Checkout Rate Seamless session continuation across visits Simplifying decision making Funnel path optimization Reducing steps in checkout Personalization Seasonality Strategies Tailor user experience by selected funnel path (search v. browse v. deals) Addressing questions / concerns Targeted offers / content displayed Product selection by season Abandon basket e-mails Skipping upsells Tailor to varying user intent (purchase versus research) Push last item viewed / redirect to conversion step Reduce number of steps in finding and comparing products Messaging + Unique Selling Points adjusted by user segment Reduce pressure of the decision Reduce questions / steps Tactics Redirect users to higher ROI funnel paths Marketing + Imagery per audience Optimize landing pages per season Simplify consultation Push the same product types Pre-fill data
