AB Testing Overview
AB Testing is a tool used by a plethora of different field workers, and the simplicity of this tool is what promotes its adaptability. AB testing is a way to compare two versions of something to figure out which performs better. In the context of marketing, that “something” is where the versatility of AB Testing comes into play as that something could be anything. AB testing is used when you want to increase conversions on your web page or application, so you test different versions by sending out the control and altered versions to a group of randomized users. Or instead of sending them out, the different versions are shown to users, and marketers can then determine which version performs better based on set metrics and goals that are set before the test to measure the effectiveness of the proposed changes. After the effectiveness is measured, marketers can then make important decisions about how they want to reach and address the needs of their consumers.
For example, the company WallMonkeys wanted to improve the homepage to increase conversions (we’ll get more into this later). With the addition of supplemental market research, WallMonkeys redesigned its homepage which provided them with Test A or the “control” test (the original webpage) and Test B (the new design). The company then compared the effectiveness of Test A and Test B to determine which design more appropriately addresses the needs of consumers. After multiple AB tests, WallMonkey replaced its slider with a prominent search bar, resulting in an increase of 550% conversion rate.
How Should YOU Conduct an AB Test?
You just learned how AB Testing gave WallMonkey useful information in determining the needs of its users, but altering a search bar isn’t always the answer. The important part of AB Testing is that there is no right answer, and in fact, there is no one right way to conduct an AB Test. Instead of expecting a straightforward answer from AB Testing, it is more productive to look at AB Testing as a resource, that is subject to change based on the desired marketing objectives.
The first step in conducting an AB Test is knowing what to test, which can be simplified into a hypothesis statement. Beginning with a hypothesis allows for a clear definition of the “independent variable” which is what will be manipulated and the “dependent variable” which is what will be measured. The next step is to determine how the performance and effectiveness of the two tests will be measured, and further what metrics will be used in that process. Then conducting market research, as shown in the WallMonkey example, will be used to create Test A and Test B. Randomized distribution channels will then be utilized for both tests. It is important to allow for an adequate testing period, which again, will vary case by case. Finally, the results of both tests will be analyzed based on the predefined metrics and objectives. The results provide valuable information on how to effectively cater to the needs of consumers and in turn improve conversions and business objectives. For a more in-depth look at the process of AB testing check out Optimizely’s AB Testing Article.
Overview of Conversion Rate Optimization
Conversion rate optimization (CRO) is the practice of increasing the percentage of users who perform a desired action on a website. CRO focuses on the process of understanding YOUR consumers. The most important step of CRO is defining what those “desired actions” or “conversions” are, also known as getting consumers to respond to your call to action. This includes but is not limited to, clicking on a website link, adding a product to a cart, using a promotional code, interacting with social media accounts, etc. Once these desired actions are recorded the conversion rate can then be calculated by dividing the number of conversions by the total number of visitors and multiplying the result by 100 to get a percentage.
The percentage must then be interpreted to determine if and how change can be implemented to improve conversion rates. It is important to note that there is no actual industry figure you can compare yourself to with 100% confidence. Rather than focusing on industry averages, it is imperative to work in the mind of YOUR consumers. This is where AB testing comes back into play! AB testing, as mentioned earlier, is one of many conversion optimization tools available to marketers that provide marketers with a clear view of the independent user journey through the marketing funnel.
The Future of AB Testing and CRO
In my article “Google Analytics 4 and the Future of Web Analytics,” I touched on the reality that marketers will soon have to face, a cookieless future. As mentioned in that article, marketers rely heavily on third-party cookies to obtain pertinent information regarding their consumers which allows them to make necessary decisions in order to effectively address the needs of current and potential consumers. Google has provided a solution to this upcoming problem with their GA4 platform, but it poses the question of how AB testing, an extremely powerful and reliable tool will be altered in this cookieless reality. If marketers are not utilizing the GA4 system then a website visitor is seen as a new user every time they visit a website which alters the randomization of the AB testing and the conversion rate, which can influence marketing decisions that do not reflect the wants and needs of consumers. This just emphasizes how important it is for marketers to make that leap and begin utilizing GA4 before it’s too late!