Goal tree SUBSCRIPTION MODEL 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.

Company Metric Business Unit Optimization Goals Experiment Goals Before you build a goal tree, let’s take a look at the structure behind it. Goal trees help you define the strategic KPIs that your program will optimize through testing and personalization. Notice how the company-level metric cascades directly into experiment-level goals. Company Metric 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 Optimization Goals Experiment Goals Your company metric measures a high-level goal: an increase in revenue for example. 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.

Average per unit price: $25.00 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. Use this method to create your own goal tree. Revenue: $2.0m Revenue Per Visitor: $1.00 Average Order Value: $50.00 Average quantity: 2.00 Average per unit price: $25.00 Conversion Rate: 2.00% Add to Cart Cart Checkout Rate Visitors: 2.0m User acquisition: 1.5m User retention 33%

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.

Customer Lifetime Value Monthly Recurring Revenue SaaS EBITDA Revenue Customer Lifetime Value Monthly Recurring Revenue Deal size Net expansion Customer Lifetime Customers Customer Acquisition Qualified Leads Lead Generation Lead Qualification Subscription Rate Retention Churn Expansion EBITDA % Fixed Costs Variable Costs User Acquisition Marketing Cost of Goods Sold Mix of sales

Television & Media Key targets Additional focus areas Revenue / Visitor Average Order Value Premium Subscription Revenue Product Conversion Rate Users Normal Subscription Conversion Rate Product Attractiveness Product Usability Supply Stability Price Competition Complexity of buying # of steps Completion rate per step Clarity of the purchase process Number of buying options Increase payment options Television & Media Key targets Additional focus areas Future discussion areas

Dating Website Revenue SoulMates.com Revenue Conversion Rate # of steps Reduce checkout funnel length Intuitive navigation Category pages Product filters Completion Rate per Step Pricing Marketing Prodauct differentiation Web User Experience Design Page speed Distractions Clear Calls to Action Average Order Value Visitors Quality Content Increase repeat purchases Sustainable churn ratio Integration with 300 retail outlets Multi-channel selling Direct online customers to retail outlets Dating Website

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 Goals Strategies Tactics Add to Cart Emphasize the Primary Call to Action Wording / messaging Location / size Design / color / iconography Minimize Distractions Establish a visual hierarchy Remove non-critical content Limit number of choices Communicate Unique Selling Points Select/target the right USP’s Refine the messaging Communicate visually Design Intuitive Navigation Use a clear, consistent layout Structure, naming, and order of sections Use iconography Market Products Effectively Test ideal product visuals Use the right review systems Find ideal description text / length Build a Sense of Urgency Show quantity left Push temporary offers Promote buying before set times Goal Mapping Goals Strategies Tactics

Goal Mapping Goals Strategies Tactics Cart Checkout Rate Simplifying decision making Addressing questions / concerns Reduce pressure of the decision Simplify consultation Seamless session continuation across visits Abandon basket e-mails Push last item viewed / redirect to conversion step Push the same product types Funnel path optimization Tailor user experience by selected funnel path (search v. browse v. deals) Reduce number of steps in finding and comparing products Redirect users to higher ROI funnel paths Reducing steps in checkout Skipping upsells Reduce questions / steps Pre-fill data Personalization Targeted offers / content displayed Messaging + Unique Selling Points adjusted by user segment Marketing + Imagery per audience Seasonality Product selection by season Tailor to varying user intent (purchase versus research) Optimize landing pages per season Goal Mapping Goals Strategies Tactics