The Most Accurate Way to Measure Video’s Effect
Adding video to your product pages undeniably increases conversion rates. What’s less clear, however, is the exact extent to which it increases sales, and in turn, your ROI (i.e. how many additional dollars you make per one dollar spent on the video solution).
The only way to figure that out is by measuring, and the only true test is with a control group.
That’s why the Treepodia video platform has been developed with a built-in control group mechanism to accurately measure ROI.
Determining the Impact of Video
In order to accurately assess the impact your videos are having on your sales, the Treepodia platform uses an automated split testing mechanism, which randomly splits your traffic into two groups: the ‘control group’ and a ‘regular group’.
Site visitors in the control group (usually 5%-20% of your traffic, as determined by you) are NOT exposed to product videos at all, i.e. the video player does not appear on the product pages.
The rest of your site visitors, a.k.a. the regular group, are exposed to videos, with the option to watch video presented on all product pages.
The system then compares the conversion rate of the control group (which reflects the original conversion rate of your site without the video platform), with the conversion rate of the regular group, taking into account the conversion rate within the regular group of those who watched video as well as those who did not.
So, if you start with 20,000 monthly product page views, the breakdown would be as follows:
A typical behavioral path of the control group vs. the regular group will show:
- The control group converting at the lowest rate
- Those in the regular group who had the option to, but did not watch video converting at a higher rate
- Those who did watch video converting at the highest rate of all
In other words, watching video not only increases CVR, but its mere presence on your site has a direct impact on increasing sales.
Calculating Your ROI
With these numbers the system can now determine how many additional orders were made thanks to video.
Your overall ROI is calculated by multiplying your mean order size times the increase in conversion rate to get a reliable estimate of the increase in sales your site is experiencing thanks to video.
Because we’re that sure that video works, Treepodia is proud to offer you a 4X ROI Guarantee. That means that the additional revenue you will see thanks to the video solution, will be at least 4 times the monthly amount spent on the Treepodia platform.
Read more about our 4X ROI Guarantee here.