Leanconf2014 - A/B-testing - How, When, Examples & Pittfalls by Ton Wesseling

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A/B-testing is awesome, the holy grail of online visitor knowledge and the base of revenue growth for many companies. Ton Wesseling, Testing Guru, frequently asked CRO speaker and CEO of Testing.Agency has 15 years of online optimization experience and will share the following insights in his talk: How & when to apply testing in your company 10 inspirational A/B-test results 20 pitfalls you will make in A/B-testing if you don't attend this talk

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H O W , W H E N , E X A M P L E S & P I T T F A L L S

L e a n C o n f e r e n c e – N o v e m b e r 1 7 t h - M a n c h e s t e r

To n W e s s e l i n g – C E O – Te s t i n g . A g e n c y

A/B-testing

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Manchester

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Should I go for City?

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Should I go for United?

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Manchester

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A/B-test ing

A/B-testing != CRO

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A/B-test ing

CRO != user knowledge

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A/B-test ing

A/B-testing

==

user knowledge

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A/B-test ing

HOW & WHEN

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A/B-test ing

EXAMPLES

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A/B-test ing

PITTFALLS

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Ton Wessel ing | @ TonW

More testing

Quality Assurance

Lower pricing

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Online Experiments – A/B-test ing

Winner!

Variation B

Variation A

Default

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Hyperl ink junky

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Digging through log f i les

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Trying to improve

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Over and over again

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What most start -ups do

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That is:

0 / 1 Testing

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Why can this lead to fai lures?

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0/1 Testing: weekly change?

26 out of 44 weeks: over 5% change!

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Testing should be l ike:

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Scienti f ic approach

A / B Testing

Live Online Research

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Experiments

“If you double the number of

experiments you do per year

you’re going to double your

inventiveness”

Jeff Bezos, CEO Amazon – 2004!

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Growth l ike AmazonG

erm

an

Ecom

me

rce

mark

et,

thank

you

André

Mory

s

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

Experiments per year

1000+(but it did not start like that)

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Growth curve

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Phase 1: test solut ions

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Fake adwords test ing

Do they

clickon your idea?

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Fake facebook test ing

Do they

likeyour idea?

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

Fake landing page test ing

Do they

subscribeto your idea?

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Make sure i t ’s not

0 / 1 Testing

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Once you bridged the gap

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The growth phase!

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Duplicate?

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I t ’s the web, i t ’s scalable!

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You need to optimize!

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Over and over again

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I t takes many experiments to win

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Maximize your test capacity

Time

Conversion%

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Speed up – more people

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Growth l ike AmazonG

erm

an

Ecom

me

rce

mark

et,

thank

you

André

Mory

s

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

Real growth

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I t takes heavy experimenting

250+ in a year

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Not every experiment is successful

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I t takes a ful l stadium a week for 250+

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Or roughly

1000+conversion points

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Too slow? Energy wil l run out!

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And you wil l never get this

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You need the real fast paced culture

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How does Bi l l win?

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Emotion vs Ratio

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Why is your user here?

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How can you

help your user ’s brain

to fullfi l it ’s needs?

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I t ’s not about A/B-test ing

Growth is about learning

how to serve brains!

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Testing costs t ime

Use it to LEARN

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FA C T & A C T – 7 s t e p s t o l e a r n

&

TellConcludeAnalyze

TestCreateAnalyzeFind

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N o w : f o c u s o n C TA

Analyze

Test

Create

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Create = Data & Psychology

Digital Data Persuasion Psychology

Analyze

&

Experiment

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Wheel-of-Persuasion.com

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Persuasion on forms

+25% sales

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Same technique

Significant more

submits, but..

Less registrations

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A small sentence

+18%

sales

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But also

+10% applications

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Motivat ion

Winner

(sales)

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Win your own form A/B-test

http://testing.agency/manchester

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And social proof?

Many went before you

In november 1.675

people applied for

a loan at MoneYou.

Winner

(sales)

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Chunk your USP’s

+14%

sales

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With learning: Phase 3 becomes easier

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Testing becomes user knowledge

ConversionOp miza on MarketResearch

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Pitt fal ls

How NOT to test

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A/B-test ing can be

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Don’t t rust your A/B-test analyt ics

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I t keeps you away from this fai lure

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Enough traff ic & conversions?

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Low signif icance levels

Big chance the winner is not a real winner

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Low power levels

Big chance a real winner is not recognized

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Tested percentage is a spread!

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Example test-setup

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Average power: 40%

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So:

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Another error warning:

You just go and dig unitil you find something

(you will always find something that seems true BUT is

not!)

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OK, results are in

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Not signif icant

It’s not a winner, stop

But, it’s does not mean it’s a loser!

Average: 30% of your tests will have winners

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More?

http://ondi.me/contentverve

http://ondi.me/conversionxl

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Conclude

Do nothing?or

Re-test?or

Implement?or

Scale?and

Continue or change test roadmap

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Knowledge l ibrary: ABtestguide.com

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

I t ’s not about A/B-test ing

Growth is about learning

how to serve brains!

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

So you wil l get this curve

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Growth l ike AmazonG

erm

an

Ecom

me

rce

mark

et,

thank

you

André

Mory

s

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

A/B-test ing

HOW & WHEN

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

A/B-test ing

EXAMPLES

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

A/B-test ing

PITTFALLS

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

Slides & more

http://testing.agency/manchester

T o n W e s s e l i n g | @ T o n W # l e a n c o n f M a n c h e s t e r 2 0 1 4

Be l ike Bil l , and win!

H O W , W H E N , E X A M P L E S & P I T T F A L L S

L e a n C o n f e r e n c e – N o v e m b e r 1 7 t h - M a n c h e s t e r

To n W e s s e l i n g – C E O – Te s t i n g . A g e n c y

ht tp : / /testing.agency/manchester

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