Website morphing will deliver a higher
conversion rate than A/B testing

At Fundamental 2019 prof. dr. Gui Liberali gave a presentation about website morphing. With website morphing a website will better meet the needs of your customers, this will make your customers more satisfied and ultimately the website will generate a higher turnover. But how does website morphing work?

A/B testing 

Traditionally companies use A/B testing to figure out which way of communicating will get you a higher conversion rate. A higher conversion rate is extremely important because of the fact that you collect data with each conversion and the conversions can also deliver you a higher profit. Now there is a new method to maximize your conversion rate. This method is website morphing.

Website morphing

Website morphing will help you maximize your conversion rate way above the traditional way of A/B testing. With A/B testing you have a learning and earning phase, but with website morphing, you learn and earn at the same time. This is because with A/B testing you make different versions of content or campaigns for your target group and try to reach them with it. After a period of time, you know what worked and what didn’t work. With this data, you can change your content. But nowadays your target group doesn’t fit in one particular box anymore. Because of this your content or campaign needs to be personalized. Website morphing helps you personalize your content. Website morphing is a real-time adaptation of your company’s actions to each customer.

The method

Website morphing suggests potential customer segments from clickstreams and then changes websites’ look and feel to maximize revenue. The established algorithm suggests possible segments from a preset number of clicks and then selects the best “morph” using the expected Gittins index. The Gittins index is a measure of the reward that can be achieved through a given pattern with certain properties. With website morphing, you will model switching costs, potential website exits, and the (potentially differential) impact of all clicks to determine when to morph for each customer. Morphing earlier means more customer clicks are based on the optimal morph; morphing later reveals more about the customer’s latent segment and their interests.

After that you will couple this within-customer optimization to between-customer expected Gittins index optimization to determine which website “look and feel” to give to each customer at each click. Your customers will get a personalized experience and because of that they will convert sooner, and your conversion rate will be higher than before.

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About Gui Liberali

Prof. Dr. Gui Liberali is an endowed Professor of Digital Marketing at the Department of Marketing Management at the Rotterdam School of Management (RSM) at Erasmus University Rotterdam, The Netherlands. He is an expert in digital experimentation, morphing theory, and applications (e.g., website morphing, ad morphing), dynamic programming, machine learning, and product line optimization.



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