the scientific approach to improving conversion with a/b testing
TRANSCRIPT
The Power of A/B Split TestingPresentation By: Alex Foley
August 4, 2016
My pain point: “I’m not sure how to best open up my
presentation at #DOYOLive.”
HYPOTHESIS 1: ENTHUSIASTIC, CONFIDENT; WWE TYPE
My hypothesis: The crowd may need to be energized!
Pro:Crowd attention and energy
Con:Potentially make a fool of myself
FUN FACT…
HYPOTHESIS 2: RIDE THE POP CULTURE WAVEMy hypothesis: A Pokemon Go reference can’t fail, right?
Pro:Widely known and top of mind
Con:Some folks may already be sick of the Poke-mania
The Results?
VOTE ON MY NEXT TEST
• Justin Bieber
• Drill Instructor
• Trump
WHAT WE WILL LEARNWhat is it?
Why it’s important?
Best Practices
The New Wave of Website Development
Resources
How Marketing “Used to” Be Done
HOW MARKETING “USED TO” BE DONE
Source: isha.sadguru.org
87% of Marketers Consider Data Their Most Underutilized Asset.
-Teradata 2015 Global Data-Driven Marketing Survey
What is A/B Split Testing?
A/B Split Testing: testing a hypothesis by measuring the performance of one version (A) against another (B) in an equal sample size.
In reality – it is the scientific method
Why is this important for us as marketers?
It keeps you thinking, it keeps you sharp
It is the formula for continuous improvement
You don’t have to be right the first time
It can give you an edge on the competition
It directly impacts the bottom line
74% of companies who take a structured approach to conversion (including A/B testing) have improved sales
Source: Econsultancy and RedEye 2014
Modern Origins
TAGUCHI’S LOSS FUNCTION—A CAR PART EXAMPLE
Bad Car Part
Take Car to Dealer
Dealer Staffs
Accordingly
Time Wasted on Preventable Problem
Missing Work to
Deal with Repairs
YOU MIGHT SAY THIS IS…
THE BUTTERFREE EFFECT!
THE FOUNDATION OF TODAY’S LEADING COMPANIES
THE BASIC A/B TESTING METHODOLOGY
A/B Learnings
Define Goals and
Hypothesis
Test a variable
Analyze and
Conclude
Record Findings
The Golden Rule of A/B Testing:Only test 1 variable at a time!
WHAT SHOULD I BE TESTING?• Email subject lines• Email preview text• CTAs• Colors• Size• Copy• Lengths of copy• Types• Sales copy• Buy now vs. learn more vs. x• Headlines• Font• Font color• Bullets vs. no bullets• Amount of content • Amount of choices or CTAs
• Page templates• Layouts• Heavy images or video vs. text• Email personalization tokens• Pricing• Pricing copy• Form aesthetics• Images – size, positioning, type, #• Email sending times• Email senders• Persona-based content• Number of form fields• Form field wording
So…everything?
THE CONUNDRUM – WHERE TO START!?
• Start with your goals and identify primary influencers
• Start with your leading hypotheses
• Start with key assets that underperform
• Start big and go narrow
A/B Testing —the Basis for Growth Driven Design
TRADITIONAL WEB DESIGN
1.5 - 2 Years
1.5 - 2 Years
3 Month Redesign
Legacy Website
Project Budget$25,000 - $250,000
3 Month Redesign
WebsiteV01
WebsiteV02
Project Budget$25,000 - $250,000
Impa
ct
Time
05/03/2023
31
THE GDD DIFFERENCEIm
pact
1.5 - 2 Years
1.5 - 2 Years
3 Month Redesign
Launch Pad
Website
Project Budget$25,000 - $250,000
3 Month Redesign
Time
WebsiteV01
WebsiteV02
Project Budget$25,000 - $250,000
Gained Opportunity
Gained Opportunity
LOOK AT YOUR TOP-VIEWED PAGES
BRAINSTORM AND HYPOTHESIZE
A
B
UTILIZE HEATMAPS AND USER SESSION DATA
UTILIZE HEATMAPS AND USER SESSION DATA
A/B Testing Software
A/B TESTING TOOLS
A/B Testing Without Tools
It is an imperfect science, but it is quite doable!
MANUAL TESTING
CREATE A TRACKING SPREADSHEET
HOW LONG IS LONG ENOUGH?It depends on:• Overall traffic• Traffic to that asset• The scale of data for your business
Pro Tip
Test it!
Find your benchmarks.
USE A CONFIDENCE CALCULATOR
A Client Case Study
Our Hypothesis: 3D book covers will drive more clicks than flat book covers
Flat Image 3D Image
Success Metric: % of views to clicks
THE RESULTS MAY SURPRISE YOU
Slight difference in views to clicksBigger difference in clicks to submissions
An A/B Testing Case Study – Sim City
AN A/B TESTING CASE STUDY – SIM CITY
MULTIVARIATE TESTING VS. A/B TESTING
A/B = testing 1 variable
Multivariate testing = testing many variables and combinations of those
Ideal for high traffic websites
Source: optimizely.com
A MULTIVARIATE CASE STUDY – 2008 PRESIDENTIAL CAMPAIGN
Success metric: sign-up rates
24 total combinations: 4 button – 6 image multivariate test
Hypothesis: video media elements will perform better
Source: blog.optimizely.com
A MULTIVARIATE CASE STUDY – 2008 PRESIDENTIAL CAMPAIGN
The Results• Hypothesis disproved
• 40.6% improvement rate
• 2,880,000 additional emails
• $60 million in donations
Source: blog.optimizely.com
A REVIEW OF KEY CONCEPTS• A/B testing is not an option, it is a must to stay competitive
• Only test one factor at a time per hypothesis
• You must be patient and wait for a significant sample size before drawing conclusions
• You are never done with A/B testing – don’t settle
• Track the results! Set regular times to update and revisit your findings
• Make it part of your culture and daily thought process
RESOURCES• How to Test Your Landing Pages infographic
• The A/B Test Calculator and A/B Testing Guide from HubSpot
• The A/B Test Flow Chart – print this out and hang it up!
• Hotjar – a free heat mapping tool
• 71 A/B Testing Ideas
• 10 A/B Testing Tools
• Growthdrivendesign.com
• http://hubs.ly/H03W7hV0
Thank You!