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Tag : conversion optimization

Remarketing by the Numbers

We recently cited some newly released findings from the Boston Consulting Group (BCG) stating that “display retargeting from paid search ads can deliver a 40 percent reduction in CPA.” It was met with some hesitation from Mariano Guzmán of Laboratorios Conda, who stated:

“[…] when I have clicked on a [life science website] what I have experienced is a tremendous amount of retargeting for 1 month that I have not liked at all as an internet user, and I do not feel my clients would as well”

Being me, I like to answer questions with facts as much as possible, so I dug some up. This one’s for you, Mariano!

To directly address Mariano’s concern, I found some studies on people’s opinions on retargeting. A 2012 Pew Research Study found that 68% of people are “not okay with it” due to behavior tracking while 28% are “okay with it” because of more relevant ads and information (4% had no opinion). I’m a little skeptical of the Pew study because they were priming the audience with reasons to “be okay” or “not be okay” with remarketing. In a sense, these people are choosing between behavior tracking + more relevant ads vs. no behavior tracking + less relevant ads. However, when users actually see the ads the ads don’t say to the viewer “by the way, we’re tracking your behavior.” Are some users aware of this? Certainly. Might some think it consciously? On occasion, sure, but nowhere near 100% of the time. However, 100% of the Pew study respondents were aware of it.

A slightly more recent 2013 study commissioned by Androit Digital and performed by Toluna asked the qusestion in a much more neutral manner (see page three of the linked-to study). They found that 30% have a positive impression about a brand for which they see retargeting ads, only 11% have a negative impression, and 59% have a neutral impression.

The Pew study and the Androit Digital study did agree on one thing – remarketing ads get noticed. In both, almost 60% of respondents noticed ads that were related to previous sites visited or products viewed.

Now to the undeniably positive side… The gains a company stands to make from remarketing.

In addition to the 40% reduction in cost per action cited in the aforementioned BCG study, a 2014 report from BCG entitled “Adding Data, Boosting Impact: Improving Engagement and Performance in Digital Advertising” found that retargeting improves overall CPC by 10%.

A 2010 comScore study evaluated the change in branded search queries for different types of digital advertising and found retargeting had provided the largest increase: 1046%.

In a 2011 Wall Street Journal article, Sucharita Mulpuru, an analyst at Forrester Research, stated that retail conversion rates are 3% on PCs and 4% to 5% on tablets. According to the National Retail Federation, 8% of customers will return to make a purchase on their own. Retargeting increases that number more than three-fold, to 26%.

There are many more studies that sing the praises of remarketing, however I wanted to stay away from case studies that investigate only single companies as well as data collected and presented by advertising service providers.

Here are my thoughts on the matter: Do some customers view retargeting unfavorably? Certainly, but that’s the nature of advertising. No matter what form it takes, some people will object to it. Considering that there is nothing ethically wrong with retargeting, we can’t give up on something that is proven to be a highly effective tactic because some people have an objection to it. In the end, it’s our job as marketers to help create success for the organizations we serve.

Marketing of Life Science Tools & Services

Small Steps

For better conversion, allow your customers to take smaller stepsIt’s enticing to try to close every prospect at the first opportunity. You can certainly rationalize doing so – you’re just trying to make the most of every opportunity, ASAP. Attempting to do so, however, can drive away your customers by forcing them to choose before they are ready to buy. While this may seem obvious in theory, life science marketers and salespeople routinely attempt to push their customers through their buying journey.

Your scientist-customers are risk-averse. If a customer isn’t sure that your product or service can perform the job they need it to perform, or if they don’t yet see that it is worth the price, they’ll view the purchase as being a high-risk endeavor. Asking a fresh prospect to make a purchase is a very big step for them – it involves a lot of risk since they are not yet certain about the utility and value of your product. The conversion of such a step would be very, very low.

To improve your conversion, you must allow your prospects to take smaller steps. Break up the buying journey into easily digestible chunks. For instance, a prospect whose email address you received from a conference may be sent an series of emails linked to various pieces of content. They may be invited to view a demo video, then subsequently given a demonstration. Perhaps after that there is a free trial, and only then would they be given the “hard sell”. This is merely an illustrative example, but one in which we have broken up one potentially huge step (visiting a booth at a conference → buying a product) into many smaller, less risky steps.

Marketers can also use these small steps in conjunction with marketing automation, CRM and / or analytics software to gain more insights into the customer. These insights may be subsequently fed to sales and / or used to help score the leads to help ensure that sales resources are deployed effectively.

Any buying journey can be broken up into an infinitesimal amount of steps, but we don’t want to make the buying journey too long by breaking it into an extremely large number of tiny steps – or, even worse, to decrease conversion by providing too many opportunities to drop out of the process. Additionally, not every product has the same amount of risk and will require the same amount of steps. Generally speaking, products which are more novel to the customer, products which are complicated, more expensive products, and products which are more central to the scientists’ research will carry more risk and therefore require more steps. So how do we know how many steps we might need? Consider the informational requirements of the average customer when making a purchasing decision and develop a content roadmap. This well help you determine the appropriate content which should be delivered, and the nature of the content should enlighten you as to the form it should take. Always allow the customer a direct path to purchase and contact high-quality leads directly to nudge them into making a decision.

One final note – the “small steps” notion does not apply only to the actual purchase. Asking a fresh prospect to give up a plethora of personal information right away will also lead to a low conversion. Ensure that you don’t place any obstructively large steps in your customer’s way.

"To put our expertise in demand generation to work for your life science company, contact BioBM. When we couple your great products and services with our expertise in demand generation, we’ll achieve great results."

Leads 101: Part 2

Responding to Leads to Maximize Conversion.This post is the second in a three-part series. Last week we discussed lead generation, and you can find that post here: https://biobm.com/2013/11/leads-101-part-1.

Responding to Inquiries

Unless you’re marketing and selling very high-value products to a relatively small audience, be it a niche market or a narrowly defined role, you’re probably relying fairly heavily on inbound marketing to drive lead generation. (If you’re not, you’re probably doing something wrong, such as relying too heavily on distributors to do your marketing for you.) Inbound leads go cold extraordinarily quickly, so it is critical to respond as soon as possible. A study published in Harvard Business Review study found that contacting potential customers within an hour of receiving a inquiry leads to a seven times higher qualification rate than contacting the an hour later and a 60 times higher qualification rate than waiting 24 hours or longer. To state this another way, waiting a day to get around to your inquiries could cost you over 98% of your leads.

So how can we reduce response time and thereby maximize conversion? A Velocify study asked just that question, and the answer was quite clear. 1) Automate your lead distribution to your sales force, 2) “push” your leads to your sales force rather than having them “pull” leads, and 3) send leads out in a “shotgun” fashion – send each lead out to multiple reps and allow the fastest to respond. Companies that did these three things were shown to have a downstream conversion rate 107% higher than those companies that handled their leads manually.

I didn’t imagine I would need to say this until I read about a study on the matter, but don’t forget to contact the people that place inquiries. You might imagine this should be obvious, yet a study of lead response behavior conducted by InsideSales.com which included data from 696 companies showed that 36% of inquiries placed through an online form were not responded to within two weeks! There’s simply no excuse for letter your leads slip through the cracks.

Remember that not every lead requires a response, however. For example, if a prospect is requesting a piece of content then depending on the nature of that content and the prospect’s past behavior it may not be helpful to contact the prospect personally, at least not if you’re delivering the content automatically. Likewise, if a lead is disqualified due to being well outside your target market, then courtesy aside, there is little value in a response. This brings us to our next topic of lead scoring, which we’ll discuss next week.

"The third and final part of this Leads 101 series will be on lead scoring and lead nurture and will be posted next week here: https://biobm.com/2013/12/leads-101-part-3. If you have any questions pertaining to demand generation in the life sciences, feel free to contact us."

Leads 101: Part 1

Lead Generation in the Life Sciences.Everyone wants more sales. Everyone wants more demand. Sales can’t come from nowhere and demand has to be realized somehow, and the way we marketers help generate sales and realize demand is, largely, through generating leads. According to a recent Webmarketing123 study, the top objective and the top challenge for B2B marketers (or at least digital B2B marketers) is generating leads. Lead generation has even become more of a focus in content marketing – something which has traditionally been more of a branding activity than a demand generation activity. With how central leads are to most marketers’ missions, I wanted to take a moment to reflect on leads in the life sciences as well as go over some of the myriad information out there and what it means for our industry – for marketers of life science tools and services.

Lead Generation

Let’s start at the top! Lead generation first requires an understanding of how much a lead is worth. Unless you can estimate the value of a standard lead, you won’t be able to determine what is an appropriate amount to spend on generating each lead. Assuming that all leads are created equal (they’re not, but we’ll say so for sake of simplicity) you can approximate the value of a lead by calculating the net present value of your average customer and multiplying by your conversion rate. If this number is very small, you’ll likely want to minimize the cost of lead acquisition. On the other hand if this number is extremely large, it will likely be worth spending more per lead to generate more leads – at least to a point.

Regardless of the value of the customer, the buying journey will be the critical factor in determining how to generate leads for your product or service. Based on the informational needs of the customer during this journey, which can be gathered through market research and validated through testing and analytics, you should be able to create a content roadmap which informs the campaign architecture and directs content creation efforts in support of lead generation.

In most circumstances, lead generation in the life sciences should be supported heavily by scientific content with a low barrier; for example, a white paper that requires only an email address to download. This is especially true if you have any kind of marketing automation in place, since the cost of a nurture campaign for low-quality leads can be incredibly small. The reason content is so important is to establish trust and, thereby, reduce perceived risk. Scientists are trained to be skeptical and will not readily accept the claims in your marketing as fact. Content helps overcome this through educating the audience on your technology, demonstrating your expertise, etc. This provides more confidence that your products / services will fulfill their need, thereby reducing perceived risk and increasing perceived value (a less risky purchase is a more valuable one), making it more likely that a scientist will buy. Additionally, downloading a piece of content in exchange for a small amount of personal information is a far lower barrier than placing an inquiry about a product and thereby requesting a sales call. For all but low-value products, these baby steps towards purchase are often necessary.

Keep in mind that contact forms greatly effect lead generation as well. Each additional field in a contact form leads to approximately a 12.5% decrease in form submissions. Keep forms as short as possible and also make sure they’re accessible without being in the way. You want prospects to be able to contact you easily at any time without feeling that you’re trying to push them into contacting you.

Of course, content and contact forms are all components of inbound lead generation. Inbound methods are great if scientists are looking for what you are selling. If not, you probably need to get your hands dirty and go and create your own leads. This can be done at conferences, via cold calling / cold emailing, or with good old-fashioned advertising. If you’ll be trying to generate leads at conferences, or even just fill up your database with prospect for downstream marketing, remember that conferences are a numbers game and talk to as many people as you can. If you decide to cold call or cold email, remember to be forthright and to the point. If you’ll be advertising to pull in your audience, consider using a content hook rather than a hard call to action about a product to play to scientists’ curiosity.

Next week we’ll be discussing responding to leads, including some best practices which can can lead to massive increases in conversion.

"This post is the first in a three-part series. Next week we will discuss responding to leads. You’ll be able to find that post here: https://biobm.com/2013/11/leads-101-part-2. The third and final part of this Leads 101 series will be on lead scoring and lead nurture and will be posted in approximately two weeks here: https://biobm.com/2013/12/leads-101-part-3. If you have any questions about anything related to demand generation in the life sciences, we welcome you to contact us."

User Testing & Conversion

Price comparison of Amazon Supply vs. other large life science distributorsI did a small study earlier this week to compare prices across six major US life science distributors (you can read about it here). Because of that, I had occasion to go through those companies’ websites and look for products. All of these companies are, by industry standards, fairly large companies, and all of them sell online. For some of them, online sales is a very significant portion of their revenues. I would bet that for most it’s their fastest growing sales channel. Yet most had glaring problems in their website. One had search results that blinded the user with bright yellow highlighted terms all over the page. Another had a high percentage of products that were not identified by their model number. Yet another had an annoyingly persistent “featured product” box that showed up front and center in the search results but never had anything in it. There was a search that seemingly only used “OR” logic for every word in the term – the more terms you added, the less relevant the results became.

These are glaring errors that hurt user experience, and they could be easily identified if these companies did user testing. This is an important point, as anything that takes away from the experience of using your website decreases your competitiveness by driving users away from your website (and likely to your competitors websites).

For those who may not be familiar with it, user testing involves someone who is within your target demographic and recording their interaction with their website. You usually give them a generic task to perform on your site and they speak their thoughts as they perform the task. The output comprises a series of screencasts with voice recordings which are then analyzed to find problems with the user experience or more generally find things that users like and don’t like (there are other techniques and tools that can enhance the output as well).

User testing is very common in many markets, but seems to be relatively uncommon in the life sciences. That may, in no small part, be due to the inherent difficulty in getting a group of scientists to sit down and do a user test, but we find that to be more of an excuse than a reason. User testing may simply not be in the culture of life science marketing, contrasted to it being fairly prevalent in B2C markets. Whatever the reason that it isn’t used, there is no good reason that it shouldn’t be used.

Anything that adversely affects user experience will have a negative impact on the purpose of the website – be it lead generation, sales, or simply progressing users through the purchasing funnel. User testing, especially in conjunction with website analytics, can be a powerful tool to improve user experience and the overall performance of your life science company’s website.

"Even if you have a new website, it’s important to gauge user feedback of it in order to improve user experience and increase conversion. User testing allows you to do just that. Contact BioBM and we’ll help you acquire and analyze feedback from scientists that will help you improve your web properties – and your sales."