A/B Testing 101: Off To A Great Start

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`A/B Testing 101: Off To A Great Start

THUE MADSEN

Thue is the Kissmetrics Webinar Wizard and Marketing Ops Manager. Before joining forces with Kissmetrics, he was a Lyft driver in SF, which is also how

he ended up as a KISSmetrics marketer. Whenever Thue is not trying to automate everything around him, you can find him hiking in the Sierras.

THUE MADSEN Marketing Operations Manager, Kissmetrics

@ThueLMadsen

@thuelmadsen

#Kisswebinar

@Kissmetrics

The don’ts…

The dos…

1 What is A/B testing?

Do your homework

Repetition

Succeed

2 Where do you start testing?

TABLE OF CONTENTS

3 A framework for success

Tooltips and Burgers4

What is A/B testing? A SCIENTIFIC METHOD OF PROOF

WHAT IS A/B TESTING FOR MARKETING

• A scientific method adapted for marketing

• Compare two or more versions of an asset to each other

• Use data and statistics to determine which version is better

• Implement winner and increase conversions

*Image from Optimizely

HOW DOES A/B TESTING WORK?

*Image from Kikolani

HOW DOES A/B TESTING WORK?

*Image from Dynamicyield

HOW DOES A/B TESTING WORK?

SO WHY DO WE A/B TEST?

• Lowers risk

• Helps us realize the actual impact of proposed changes

• Increase learnings

• Takes the guess work out of optimization

How do you start testing? THE DON’TS

*Image from Optimizely

WHERE DO YOU START TESTING?

DON’T JUST GUESS

SUB OPTIMIZE

• Button colors

• Small copy changes

• Small layout changes

• Fonts, font size, etc.

* at least not until you have found a great variation and have lots of traffic

WATCH OUT FOR BUZZ

• Don’t just test what the gurus say

• What works for others may not work for you

PREMATURE TESTING

• Testing without an audience/traffic

• Before you know what and why you are testing

Where do you start testing? THE DOS

DO YOUR HOMEWORK

You have to put in the work to get great results

• Learn as much as you can about A/B testing

• Study the great people out there

• What’s their process and insights?

A framework for success The basis of a successful testing program

Research Know what to test and see the greatest improvements

DIVE INTO YOUR DATA

PaidEntered CCAdded to CartViewed Product

FIND YOUR BIGGEST OPPORTUNITIES

PaidViewed CheckoutAdded to CartViewed Product

INVESTIGATE THE OPPORTUNITY TO UNDERSTAND IT

And/Or

INVESTIGATE THE OPPORTUNITY TO UNDERSTAND IT

* peek.usertesting.com/

INVESTIGATE THE OPPORTUNITY TO UNDERSTAND IT

FORM A HYPOTHESIS

By doing A,

B will happen,

Because of C

FORM A HYPOTHESIS

By focusing on the benefits of Kissmetrics instead its features (A),

We will get more prospects to sign up for a trial (B),

Because people understand the value of the product (C).

BUILD THE TEST

BUILD THE TEST

VS.

Control Variant

MEASURE THE TEST

VS.

Control Variant

LAUNCH THE TEST

CALL THE TEST

VS.

Control Variant

+17.74% increase in registrations!! 98% Significance

DOCUMENT AND SHARE YOUR FINDINGS

DOCUMENT AND SHARE YOUR FINDINGS

Documenting all your tests and results

• Increases company transparency

• Helps others know where tests are going on

• Makes it easier to call tests

• Makes learnings available for everyone in company

*Image from Optimizely

REPEAT THE PROCESS AS OFTEN AS POSSIBLE

A STORY OF OUR FAILURE

VS

Control Variant

A STORY OF OUR FAILURE

VS

A STORY OF OUR FAILURE

VS-13.68% increase in registrations!! 80% Significance

*Quote found on VWO

NOT ALL TESTS ARE WINNERS

“ “Only 1 out of 8 A/B tests have driven significant change.”Noah Kagan AppSumo*

“ “The goal of a test is to get a learning, not a lift. With enough learnings, you can get the real lift,” Dr. Flint McGlaughlin MECLABS**

**Quote found on MarketingSherpa

RULES OF THUMB FOR TESTING

Things to remember when we are testing

• Min. 2000 visitors

• Min. a few hundred conversions

• At least one full cycle > 2 week

• >99% statistical significance

• Keep a backlog of test hypothesis

• Build next tests as the current one is running

*More info at http://kiss.ly/1vF4wUc and http://kiss.ly/1Q4vTm0

Tooltips AND BURGERS

How I like my testing burger Tooltips for your testing framework

Tool Company Why do I like it?

Analytics KissmetricsShows me my actual customers and their

behavior

Qualitative ResearchQualaroo,

SurveyMonkey, Usertesting

Easy to use/Deep qualitative insights

Project Management TrelloManage my time + communicate with

collaborators

Tool Company Why do I like it?

Company Wiki Confluence Document initial thoughts for everyone

Testing platform* Optimizely, Pardot, Adwords

Easily build tests and get data

Analytics Kissmetrics Let’s me confirm and verify down my funnel

Company Wiki ConfluenceDocumentation and

learnings for everyone

*Includes actual testing platform and tools that have testing capabilities

Not everyone likes their burger the same way

How do you take yours?

Trust the process Share your leanings Stack your results

A/B TESTING FOR SUCCESS

*Image from Optimizely

REPEAT THE PROCESS AS OFTEN AS POSSIBLE

FEEL LIKE A WINNER AND TAKE A VACATION

Appsumo reveals its A/B testing secret: only 1 out of 8 tests produce results

MORE RESOURCES…

A Beginner’s Guide To A/B Testing: An Introduction

How to Run AB Tests that Get REAL Results

Statistical Significance Does Not Equal Validity (or Why You Get Imaginary Lifts)

How Big is the Difference Between Being 90% and 99% Certain?

My 7 Rules for A/B Testing That Triple Conversion Rates

Optimizely: What is A/B Testing

How To Determine The Statistical Significance Of An A/B Test – Basic Introduction

How to Determine Statistical Significance When A/B Testing With Divi Leads

THUE MADSEN Marketing Operations Manager, Kissmetrics

@ThueLMadsen tmadsen@kissmetrics.com

Questions?