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Friday, June 3, 2016

Managed Service Sucks

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Managed Service Sucks

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Software and Services Don’t Mix

Why you shouldn’t buy services from your testing platform.

Split-testing software vendors have traditionally relied on their managed service to win and retain clients.
From Maxymiser to Adobe, Monetate to Qubit, the managed service has been essential to their growth. Even today, most companies cite a lack of resource as the biggest barrier in their optimisation program – and a managed service can help overcome that.
Except most managed services suck.
For software vendors, a managed service can throttle their growth and limit their potential. And for their customers, a managed service can lead to substandard results in their conversion optimisation programme.
And as the optimisation and testing industry continues to expand exponentially, this is only going to get worse.
The core of the problem is simple:

Software and service don’t scale at the same rate.

Scale is crucial to the success of software vendors. After all, most testing platforms have taken significant investment: Qubit has taken $75M, Monetate $46M, and Maxymiser was acquired by Oracle in August 2015.
But it’s challenging when these companies offer essentially two products – software and service – that scale at very different rates.
With limited cost of sales, a fast-growth software vendor may expect to increase its sales 3–5x in a year.
Look at the rise of Optimizely. Their product’s ease-of-use and their partner program allowed them to focus on the software, not a managed service. And that meant they could grow their market share rapidly:

testing-market

Between 2012 and 2015, they’ve grown 8x.
Now compare that growth to a marketing services agency. Even a fast-growth mid-size agency may only grow 50% a year – or to put it another way, 1.5x.
If you combine software and service in one company, you’re creating a business that is growing at two very different rates. And this creates a challenge for testing platforms who offer a managed service.
They have three options:
  1. Move away from managed service to self-serve and partner-led growth.
  2. Attempt to scale managed service to keep up with software growth.
  3. Some combination of 1 and 2.
Most will choose option 2 or 3, rather than going all-out on 1. And this choice threatens the quality of their managed service and their ability to scale through partners.

The cost of scaling services

To enable scaling – and to minimise costs – software vendors have to exploit efficiencies at the expense of quality:
  1. They strip back the service to the absolute minimum. They typically cut out the quantitative and qualitative analysis that supports good testing.
  2. They rely on cookie-cutter testing. Instead of creating a bespoke testing strategy for each client, they replicate the same test across multiple websites, regardless of whether it’s the right test to run.
  3. They load account managers with 10–20 clients – meaning the service is focused on doing the minimum necessary to limit churn.
In short, to keep up with the growth of the platform, they inevitably have to sacrifice the quality of the managed service in the interest of making it scale.
Let’s look at each of these three points in turn.

#1 Stripped-back service

At its core, conversion optimisation is simple:
Find out why people aren’t converting, then fix it.
The problem is that the first part – finding out why they aren’t converting – is actually pretty hard.
Earlier this year, I shared our take on Maslow’s hierarchy of needs – our “hierarchy of testing”:
Conversion.com hierarchy of testing
The principle is the same as Maslow’s – the layers at the bottom of the pyramid are fundamental.
Starting at the top, there’s no point testing without a strategy. You can’t have a strategy without insight and data to support it. And you can’t get that without defining the goals and KPIs for the project.
In other words, you start at the bottom and work your way up. You don’t jump straight in with testing and hope to get good results.
In particular, the layers in the middle – data and insight – are essential for success. They link the testing program’s goals to the tests. Without them, you’re just guessing.
But all of this comes at a cost – and it’s typically the first cost that managed services cut. Instead of using a similar model to the pyramid above, they jump straight to the top and start testing, without the data and insight to show where and what they should be testing.
Ask them where they get their ideas from, and they’ll probably say heuristics – a nicer way of saying “best practice”.

#2 Cookie-cutter testing

Creating tests that aren’t based on data and insight is just the start.
To maximise efficiency (again, at the expense of quality), managed services will typically use similar tests across multiple clients. After all, why build a unique test for one client when you can roll it out across 10 websites with only minimal changes?
Break down the fees that managed services charge, and it’s easy to see why they have to do this.
Let’s assume Vendor X is charging £3k to deliver 2 tests per month. If we allow £1k/day as a standard managed service rate, then that gives 24 hours – or 12 hours per test.
At Conversion.com, we know that even just to build an effective test can take longer than 12 hours – and that’s before you add in time for strategy, design, QA and project management.
The cookie-cutter approach is problematic for two core reasons:
  1. They start with the solution, and then find a problem for it to fix. It’s clear that this is going to deliver average results at best. (Imagine if a doctor or mechanic took a similar approach.)
  2. It limits the type of tests to those that can be easily applied across multiple websites. In other words, the concepts aren’t integrated into the website experience, but are just pasted on the UI. That’s why these tests typically add popups, modify the calls-to-action and tweak page elements.

#3 Account manager loading

This focus on efficiencies means that account managers are able to work across at least 10–20 clients. Even assuming that account managers are working at 80% utilisation, that means that clients are getting between 1.5 and 3 hours of their time each week.
Is that a problem?
At Conversion.com, our consultants manage 3–5 clients in total. We feel that limit is essential to deliver an effective strategy for optimisation.
Ultimately, it reflects our belief that conversion optimisation can and should be integral to how a company operates and markets itself – and that takes time.
Conversion optimisation should let you answer questions about your commercial, product and marketing strategy:
  • How should we price our product to maximise lifetime value?
  • How do we identify different user segments that let us personalise the experience?
  • Which marketing messages are most impactful – both on our website and in our online and offline advertising?
Not “Which colour button might work best?”
Conversion optimisation isn’t a series of tactical cookie-cutter tests that can be churned out for your website, while 19 other clients compete for your AM’s attention.

The impact on test results

It’s not surprising that a managed service with a “one-size-fits-most” approach for its clients doesn’t perform as well as testing strategy from a dedicated optimisation agency.
The difference in approach is reflected in results (and, of course, the cost of the service).
But some managed services are misleading their clients over the success of their testing program.
There are three warning signs that the value of a managed service is being overreported:
  1. Weak KPIs: A KPI should be as closely linked as possible to revenue. For example, you may want to see whether a new product page design increases sales. But many managed services will track – and claim credit for – other KPIs, like increasing “add to cart”. While it may be interesting to track, it doesn’t indicate the success of a test. No business made more money just by getting more visitors to add to cart.
  2. Too many KPIs: There’s a reason why managed services often track these weak KPIs alongside effective KPIs, like visit to purchase or qualified lead. That’s because the more KPIs you track – bounce rate, add to cart, step 1 of checkout – the more likely you are to see something significant in the results. At 95% significance, there’s a 1 in 20 chance of getting a false positive. So if you’re testing 4 variations against the control, and measuring 5 KPIs for each – the chances are you’re going to get a positive result in one KPI, even when there isn’t one.KPI table
  3. Statistical significance: The industry’s approach to statistical significance has matured. People are less focused on just hitting a p value of 0.05 or less (ie 95% significance). Instead, strategists and platforms are also factoring in the volume of visitors, the number of conversions, and the overall test duration. And yet somehow we still hear about companies using a managed service for their testing, where the only result in the last 12 months is a modest uplift at 75% significance.

The role of managed service

Managed service has a place. It can be essential to expand a new market – especially where the product’s learning curve is steep and may limit its appeal to a self-serve audience.
But the focus should always be on the quality of the service. Vendors can subsidise the cost of their service if needed – whether through funding or the higher profit margin in software – to deliver an effective optimisation program.
Then, their growth should come through self-service and partners. As above, service and software scale at different rates – and the faster a software vendor champions self-service and a partner program, the faster they’ll grow.

Disclaimer: I’m the CEO of Conversion.com, an agency that specialises in conversion optimisation. We partner with many of the software vendors above. While we have a vested interest in companies choosing us over managed service, we have an even greater interest in making sure they’re testing effectively.
May 31st, 2016

About the Author

 
Stephen Pavlovich

Stephen Pavlovich

Resource: http://conversion.com/blog/managed-service-sucks/



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Berapa sih nilai dari blog gue DALAM DOLLAR  ? http://richardnata.blogspot.com/2015/04/berapa-sih-nilai-dari-blog-gue-dalam.html


Need a professional writer? Fiction and non-fiction? contact richard.nata@yahoo.co.id
Let me introduce myself. My name is Richard Nata. I am an author, novelist, blogger and ghost writer. My articles, including short stories have been published in magazines and newspapers since 1994. I have written a lot of books, both fiction and non-fiction. So I was a professional in the field of writing, both fiction and non-fiction.

I was born in Jakarta, August 17, 1968.  

In 1988, at the age of 20 years, I started working as an accounting staff. Age 24 years has occupied the position of Finance Manager. Age 26 years as a General Manager.

In 1994, my articles published in magazines and tabloids.

In 1997, I wrote a book entitled "Buku Pintar Mencari Kerja". This book is reprinted as much as 8 times. Through the book, the authors successfully helped tens of thousands of people get jobs at once successful in their careers. They were also successful when moving to work in other places.

In 1998, I started investing in shares on Bursa Efek Indonesia (Indonesia stock exchange). As a result of investing in the stock market then I can provide consulting services for companies that want to go public in Indonesia stock exchange.

more information :
1. IPO KAN PERUSAHAAN ANDA DI BEI, TRIK TERCEPAT MENJADIKAN ANDA SEORANG KONGLOMERAT. brand, ideas, story, style, my life: IPO KAN PERUSAHAAN ANDA DI BEI, TRIK TERCEPAT MENJADIKAN ANDA SEORANG KONGLOMERAT.
2. JASA KONSULTAN GO PUBLIC ( IPO ) DI BURSA EFEK INDONESIA. 


BUKU PINTAR DAPAT KERJA GAJI TINGGI PINDAH KERJA GAJI SEMAKIN TINGGI made by retyping the book BEST SELLER of the author, entitled “Buku Pintar Mencari Kerja”. This ebook available on google play.

In 2015, I had the idea of a startup company where the readers can decide for themselves the next story. WASN'T THIS A GREAT IDEA? IF can be realized WILL BE WORTH billions USD. Because CAN PRODUCE FOR MILLIONS OF DOLLARS even tens of millions USD annually. 

In theory, in 10-20 years into the future, my startup income, amounting to hundreds of million USD annually can be obtained easily. AND IF FOLLOWED BY MANY COMPANIES IN THE WHOLE WORLD WILL THEN BE A NEW INDUSTRIAL worth trillions USD. 

To be honest. Currently I'm not having a lot of money. So I start marketing my startup with blogspot.

My STARTUP :


A story with millions of choices in it - looking investor like you.



Try to imagine this. When you're reading a story on the web or blog, you are given two choices. You can choose the next story based on your own choice. After selecting then you can continue reading the story. Shortly afterwards you will be presented back to the 2 other options. The next choice is up to you. Then you continue the story you are reading. After that you will be faced again with 2 choices. So onwards. The more stories you read so the more options you have taken.


If you feel curious then you can re-read the story by changing your selection. Then you will see a different story with the story that you have read previously. The question now is why is this so? Because the storyline will be varying according to your choice. 


I, as the author is planning to make tens of thousands of articles with millions of choices in it. With tens of thousands of articles then you like to see a show of your favorite series on TV for several years. The difference is while watching your favorite TV series, then you can not change the story. Meanwhile, if you read this story then you can alter the way the story according to your own choice.

You might say like this. Sounds like a book "choose your own adventure". Books I read when I was young.

Correctly. The idea is taken from there. But if you read through a book, the story is not so exciting. Due to the limited number of pages. When a child first you may already feel interesting. But if you re-read the book now then becomes no fun anymore because you don't get anything with the amount of 100-200 pages. 

Have you ever heard of game books?  When you were boy or girl, did you like reading game books? I think you've heard even happy to read it.

Gamebooks are sometimes informally called choose your own adventure books or CYOA which is also the name of the Choose Your Own Adventure series published byBantam Books. Gamebook - Wikipedia, the free encyclopedia
Gamebook - Wikipedia, the free encyclopedia

A gamebook is a work of fiction that allows the reader to participate in the story by making effective choices. The narrative branches along various paths through the use of numbered paragraphs or pages.
Lihat di en.wikipedia.org
Lihat preview menurut Yahoo

Bantam Books with the Choose Your Own Adventure 

series has produced more than 250 million US 

dollars. While I offer you more powerful than the Choose 

Your Own Adventure. Because of what? Because the 

story that I made much more interesting than the stories 

created by the authors of Bantam Books. You will not get anything just to 100-200 pages. While the story that I created is made up of tens of thousands of articles with millions of choices in it.

For comparison are the books published with the theme "choose your own adventure" produces more than 250 million copies worldwide. If the average price of a book for 5 USD, the industry has produced more than 1.5 billion USD. But unfortunately this industry has been abandoned because the reader begins to feel bored. The last book was published entitled "The Gorillas of Uganda (prev." Search for the Mountain Gorillas ")". And this book was published in 2013.

Based on the above, then you are faced with two choices. Are you interested in reading my story is? Or you are not interested at all. The choice is in your hands.
If you are interested then spread widely disseminated this article to your family, friends, neighbors, and relatives. You can also distribute it on facebook, twitter, goggle +, or other social media that this article be viral in the world. By doing so it is a new entertainment industry has been created.

Its creator named Richard Nata.

The full articles that talks about this: 
1. A Story That Surprised The World.  http://richardnata.blogspot.com/2015/03/a-story-that-surprised-world.html
  
WHY DO I NEED STARTUP FUNDS FROM INVESTORS? I NEED A LOT OF FUNDS FROM INVESTORS BECAUSE I HAVE TO LOOKING FOR EXPERT PROGRAMMERS(IT).BECAUSE THE DATA IS HANDLED IS VERY LARGE, IT MAY HAVE TO WEAR SOME PROGRAMMERS(IT).

I CAN NOT WEAR SOME FREELANCE PROGRAMMER BECAUSE THE DATA MUST BE MONITORED CONTINUOUSLY FROM VIRUSES, MALWARE, SPAM, AND OTHERS.

IN ADDITION FUNDS FROM INVESTORS IS ALSO USED TO BUY SERVERS WITH VERY LARGE CAPACITY. FUNDS ARE ALSO USED TO PAY EMPLOYEE SALARIES AND OPERATIONAL COSTS OF THE COMPANY.

FUNDS CAN ALSO BE USED FOR ADVERTISING AND OTHER MARKETING STRATEGIES.FUNDS CAN ALSO BE USED TO ADVERTISE MY STARTUP AND OTHER MARKETING STRATEGIES.

IF I GET A VERY LARGE FUND, THE PART OF THE FUNDS USED TO TRANSLATE THE STORY INTO VARIOUS LANGUAGES.With more and more languages, the more readers we get.
WITH MORE AND MORE READERS, THE MORE REVENUE WE GET. 

AS AN INVESTOR THEN YOU DO NOT HAVE TO FEEL ANXIOUS ABOUT YOUR FUNDS. BECAUSE YOUR FUNDS WILL NEVER BE LOST BECAUSE IN 3-5 YEARS YOU HAVE RETURNED THE FUNDS COUPLED WITH PROFIT.
THIS BUSINESS IS ONE AND THE ONLY ONE IN THE WORLD.

If we can make a good story, so that the readers will 

come again and again for further reading the story then 

our earnings will continue to grow and will never 

diminish. This is due to new readers who continued  to 

arrive, while long remained loyal readers become our 

customers.

So that the number of our readers will continue to 

multiply over time. With the increasing number of loyal 

readership then automatically the amount of income we 

will also grow larger every year. The same thing 

happened in yahoo, google, facebook, twitter, linkedin, 

and others when they still startup.

Deuteronomy {28:13} And the LORD shall make thee the 

head, and not the tail; and thou shalt be above only, and 

thou shalt not be beneath; if that thou hearken unto the commandments of the LORD thy God, which I command thee this day, to observe and to do [them: ]

Try to imagine this. If I give a very unique story. It was the first time in the world. But the world already know this story even liked it. Because the world love the game books. While the story that I made is the development of game books.
Do you Believe if I dare say if I will succeed because my story will be famous all over the world as Harry Potter?
I believe it. Not because I was the author of the story, but because of the story that I made is unique and the only one in the world. 
Income from my startup :
1. Ads. With millions of unique visitors, the price of the ads will be expensive.
2. Affiliate marketing. In addition to advertising, we are also able to put up some banner from affiliate marketing.
3. Contribution of the readers. If you have a million readers and every reader to pay one US dollar per year then you will get the income of one million US dollars per year. 
If you have a million readers and every reader to pay one US dollar per month then you will get as much revenue twelve million US dollars per year.
4. Books and Comics. After getting hundreds of thousands to the millions of readers of the story will be made in books and the form of a picture story (comics).
5. Movies. If we have a good story with millions of readers then quickly we will be offered to make a film based on the story.
6. Merchandise related to characters. After the movies there will be made an offer for the sale of goods related to the characters.
7. Sales. With millions of email that we have collected from our readers so we can sell anything to them.
    Each income (1-7) worth millions to tens of millions of US dollars. 
    Because each income (1-7) worth millions to tens of millions of US dollars. Then in 10-20 years into the future, AI will be earning hundreds of million USD annually.
So how long do you think my story that I made could gather a thousand readers? Ten thousand readers? One hundred thousand readers? A million readers? Five million readers? Ten million readers? More than ten million readers?
But to get all of it of course takes time, can not be instant. In addition, it takes hard work, big funds and placement of the right people in the right positions.
By advertising, viral marketing, strong marketing strategies and SEO then a million readers can be done in less than a year. Ten million readers can be done in two to three years.
This is the marketing strategy of my startup.
When hundreds of thousands or millions of readers already liked my story then they have to pay to enjoy the story that I made.
If you are a visionary then you will think like this.
With the help of my great name in the world of business, my expertise in marketing, advertising, marketing by mouth, viral marketing, then collecting a million readers to ten million readers will be easy to obtain. Is not that right?
The question now is what if people like my story as they like Harry Potter? You will get tens of millions or even hundreds of millions of email addresses from readers. With that much email, we can sell anything to the readers.
Since April 2013, Wikipedia has around 26 million articles in 285 languages are written by 39 million registered users and a variety of anonymous people who are not known from other parts of the world.  Web ranked by Alexa, Wikipedia is a famous website number 6 which has been visited by 12% of all Internet users with 80 million visitors every month and it is only from the calculation of America.

resource : http://www.tahupedia.com/content/show/136/Sejarah-dan-Asal-Mula-Wikipedia

If no Wikipedia then need hundreds of thousands to millions of books required to make 26 million articles in 285 languages into books.

With the Wikipedia then people started to leave to read a book or books to seek knowledge about a subject or many subjects.

The same thing will happen. Read a story in a book or books to be abandoned. Read a story with millions of choices on the web or blog is far more interesting than reading a book or books. 

So what happens next? In 10-20 years ahead then read a story in a book to be abandoned. Otherwise my startup will grow and continue to develop into a new entertainment industry.

New entertainment industry, where I was a forerunner startup will continue to evolve. 
Therefore, in 10-20 years into the future, my startup will be earning hundreds of million USD annually.

So do not delay. Invest your money immediately to my startup. Take A Look. There are so many advantages if you want to invest in my startup.
WHY YOU SHOULD INVEST YOUR MONEY RIGHT NOW? .
IF YOU INVEST YOUR FUNDS IN ONE, TWO OR THREE YEARS INTO THE FUTURE, YOU MAY BE TOO LATE.
BECAUSE IN 1-3 YEARS INTO THE FUTURE THEN I'VE GOT THE FUNDS. THE FUNDS CAN COME FROM SOME INVESTORS, LOANS FROM BANKS OR FROM ADVERTISEMENTS POSTED ON MY BLOG.

IF I'VE GOT A LARGE AMOUNT OF FUNDS THEN I'VE NO NEED OF YOUR FUNDS. SO INVEST NOW OR NOT AT ALL.

My BLOG started to be written January 11, 2015. TODAY, MAY 30, 2015, THE NUMBER OF CLICKS HAS REACHED 56,750. SO FAR SO GOOD.

If I get big funds from investors then with a quick story that I wrote will spread throughout the world.

So I got acceleration because I can put ads in a large variety of media such as Google AdWords, Facebook, and others. I also can perform a variety of other marketing strategies.
If I do not get funding from investors then my story would still spread throughout the world. But with a longer time, Slow but sure.

So either I get funding from investors or not, the story that I wrote will remain spread throughout the world. Ha ... 7x

So don't worry, be happy.

My advice to you is you should think whether the data that I have provided to you makes sense or not .
If my data reasonable then immediately invest your funds as soon as possible.

Then we discuss how we plan further cooperation.
Thank you.
Lord Jesus bless you.
Amen
P.S. The offer letter I gave also to the hedge funds and 

venture capital and other major companies 

in the entire 

world. So who is fast then he will get it.


P.P.S. In addition, there is one more thing I 

want to tell you. If a story can generate tens 

of millions of US dollars, then what if made 


many stories? Then why do not you make 2, 3 or many stories? You will get hundreds of million USD annually.

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