In the digital world, making decisions based on intuition or gut feelings no longer cuts it. This is where A/B testing, commonly referred to as “split testing,” changes the game for American small business owners. By comparing two versions of a webpage or marketing element, entrepreneurs can make data-driven decisions that significantly improve their business’s performance.
Understanding A/B Testing
A/B testing is the scientific comparison of two versions of a marketing element, be it an email, a landing page, or an ad, to see which one performs better. It’s like a virtual science experiment where your marketing campaigns are under the microscope. But how did this become a thing?
Historically, A/B testing is rooted in the field of statistics, known as hypothesis testing. It’s not just a marketing fad; it’s a proven scientific principle that has evolved over time, adapting to the needs of the digital age.
Importance of A/B Testing
A/B testing is a powerful technique for increasing conversions and revenue. It involves splitting traffic 50/50 between a control and a variation. A/B split testing is not a new concept; it’s essentially a modern term for controlled experimentation. However, despite the vast amount of content available on the topic, many still make mistakes in testing the wrong things or running A/B tests incorrectly.
This method of testing is rooted in scientific experimentation, similar to how researchers test the efficacy of new drugs using a “split test.” Most research experiments can be considered a “split test,” complete with a hypothesis, a control, a variation, and a statistically calculated result.
For conversion optimization, the main challenge is the variability of Internet traffic. While it’s easier to control external variables in a lab, online it’s more challenging to create a purely controlled test. Additionally, testing new drugs requires a high degree of accuracy due to the potential impact on lives. In contrast, online A/B split-testing considers business goals, weighing risk vs. reward, exploration vs. exploitation, and science vs. business.
A/B tests can also be expanded to include more than two variations, known as A/B/n tests. These tests are beneficial for implementing multiple variations of the same hypothesis but require more traffic as they distribute it among more pages.
A/B Testing vs. Multivariate Testing
While A/B tests are the most popular form of online experimentation, there are other types, such as multivariate and bandit tests. A/B/n tests are controlled experiments that run one or more variations against the original page. In contrast, multivariate tests evaluate multiple versions of a page to determine which attributes have the most significant impact.
For those with ample traffic, it’s beneficial to use both A/B and multivariate tests in their optimization program. Most agencies prioritize A/B testing due to its simplicity and the potential for more significant changes.
Bandit algorithms are a type of A/B/n test that updates in real-time based on the performance of each variation. The algorithm starts by sending traffic to the original and the variation(s). As the test progresses, the algorithm updates based on which variation is “winning.” One of the benefits of bandit testing is that it reduces the “regret” or lost conversion opportunity experienced while testing a potentially inferior variation.
Improving A/B Test Results
To enhance A/B test results, it’s essential to have a structured approach. Research indicates that 74% of optimizers with a structured method report improved sales. A winning process typically involves research, prioritization, experimentation, analysis, learning, and repetition.
Setting Up A/B Tests
Analyzing A/B Test Results
After running the test, it’s crucial to analyze the results thoroughly. Always analyze your test results in Google Analytics or a similar tool to ensure data accuracy. If there’s no significant difference between variations, consider segmenting the data to identify potential insights for specific user groups.
Archiving Past A/B Tests
Archiving test results and planning a systematic approach to testing can lead to more significant growth. Some companies use sophisticated tools, while others rely on simpler methods like Excel and Trello. Regardless of the method, it’s essential to structure knowledge management effectively.
A/B testing is a powerful tool for businesses looking to optimize their online presence and make data-driven decisions. By understanding the principles behind A/B testing, prioritizing hypotheses, setting up tests correctly, and analyzing results thoroughly, businesses can significantly improve their conversion rates and overall performance.
- All Things Data-Driven Marketing: https://cxl.com/blog/
- New term for an old technique: https://win-vector.com/2015/06/12/i-do-not-believe-google-invented-the-term-ab-test/
- Run A/B tests incorrectly: https://cxl.com/blog/12-ab-split-testing-mistakes-i-see-businesses-make-all-the-time/
Did you split test your sales and marketing funnels? If not, get your free 15-minute strategy call with us here to find out how we can help you.