DOES NOT WORK WHEN MULTIVARIATE TESTING TURN TO E-COMMERCE REVENUE PERFORMANCE MANAGEMENT CONVERSION

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1 WHEN MULTIVARIATE TESTING DOES NOT WORK TURN TO E-COMMERCE REVENUE PERFORMANCE MANAGEMENT Case Study: PETCARE RX e-optimizer, proven to deliver predictable revenue increases in real time. hi CONVERSION

2 When multivariate testing does not work, turn to e-commerce Revenue Performance Management An adaptive solution capable of experimenting with many variables while producing consistent results. Case Study: PETCARE RX CUSTOMER Think of PetCareRx as your pet s personal pharmacy. With PetCareRx, your pet s medications and supplies are just a phone call or a click away. PetCareRx carries the brands you trust at prices that you ll welcome. Better yet, since PetCareRx isn t a club, there are no membership fees. INDUSTRY Pet care, pharmaceuticals, pet supplies. CHALLENGE Build consistent revenue growth in a rapidlychanging market. RESULTS Sustainable +9.79% revenue growth. WHEN MULTIVARIATE TESTING DOES NOT WORK, TURN TO E-COMMERCE REVENUE PERFORMANCE MANAGEMENT PetCareRx is the fastest-growing online pet retailer, reaching over 5 million pet owners annually. PetCareRx was founded on the philosophy that each and every pet deserves the best nutrition, complete protection, personalized care, and most importantly, lots of love. In this way, PetCareRx offers a wide variety of products for your four-legged friend, including treats, food and supplements, and a vast range of prescription and nonprescription medications all at a great value and with the convenience of 24-hour, at-home access. THE REVENUE MANAGEMENT CHALLENGE PetCareRx s marketing team is well-known for its agility and understanding of their customers needs. This team manages over 100 different marketing campaigns each month, which requires tight control of revenue outcomes. For this, PetCareRx was an early adapter and heavy user of multivariate testing (MVT) solutions. After these traditional MVT solutions produced inconsistent results, PetCareRx turned to e-optimizer to apply its adaptive multivariate optimization capabilities to their campaigns. Page 1

3 When multivariate testing does not work, turn to e-commerce Revenue Performance Management An adaptive solution capable of experimenting with many variables while producing consistent results. EXPERIMENT SETUP PetCareRx teamed up with HiConversion to test several variable elements in their product detail page optimization campaign: Main Navigation: Which options should be presented in the mouse-over drop down menu? Ordering: How much descriptive information is needed during product selection? Recommendations: How effective are up-sell product recommendations? Search: What is the best way of using product search options? Breadcrumbs: Are there better applications for this space, such as trust badges? Layout: Are there better locations for the product image? The optimization goal was to improve RPV (revenue per visitor). To verify the adaptive capabilities of our patented technology, we asked PetCareRx to continue to run the multitude of their existing marketing campaigns without telling us about what and when they are running them. Page 2

4 THE RESULTS RESULTS Stable revenue lift: +9.79% THE RESULTS Real-Time Revenue Lift: As shown in the new revenue report below, the adaptive algorithm was able to correctly detect changes in visitor behavior and generate revenue lift in real time. The optimization campaign reached confidence in just days, producing an overall revenue lift of +9.79% CUSTOMER INSIGHT e-optimizer s actionable analytics provided insight into visitors reactions to the individual elements included in the optimization campaign. For example, a comparison between two time intervals indicates that repositioning the recommendation box (circled in green) to another location was producing consistently good outcomes, and should be made a part of the page template. Product ordering options (circled in red), on the other hand, produced inconsistent results and warrant further analysis. Page 3

5 TEAM EMPOWERMENT HiConversion s generic pixel integration and point-and-click interface helped facilitate an easy experiment setup process that did not require IT support. FUTURE OPTIMIZATION PLANS After analyzing the results, PetCareRx decided to expand their use of e-optimizer to full-funnel optimization and to apply visitor segmentation based on the new data they gleaned from their initial campaign. Page 4

6 CONCLUSION e-optimizer has proven its ability to deliver predictable revenue increases in real time. The MVT and rules-based personalization solutions that PetCareRx was using prior to HiConversion failed because they assumed that visitor behavior was not changing over time. As a result, they failed to provide sustainable revenue growth both during and post-test. e-optimizer is a game-changer with patented capabilities that should serve as the foundation for any sustainable e-commerce revenue performance management (erpm) strategy. After years of frustration we ve experienced with traditional multivariate testing, HiConversion was able to quickly demonstrate its capabilities and open our eyes about long-term strategy for sustainable revenue growth. Blake Brossman Founder and Chief Innovation Officer, PetCareRx BENEFITS Virtual enabling meant that IT was not involved, which translates to delay-free optimization. e-optimizer s actionable analytics provide marketers with a deeper understanding of visitor preferences. About HiConversion HiConversion empowers e-commerce brands to produce predictable revenue growth from existing web traffic while also providing strategic knowledge about web visitor preferences. Our e-optimizer platform is built on a foundation of patented virtualization technology and is driven by a self-learning, patented adaptive multivariate optimization engine that leverages big data, multivariate analytics, and an adaptive algorithm to build sustainable e-commerce Revenue Performance Management (erpm). Learn more at 2013 HiConversion, Inc. Page 5

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