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Lessons Learned From A/B Testing Wins and Losses

MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

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Page 1: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Lessons Learned From A/B Testing Wins and Losses

Page 2: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

WHO I AM: GROWTH HACKER

ANDY

Page 3: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Growth Team/groTH tem/ n.

A group within the company that develops the product experience in a way that creates more activated users

! Pre Product/Market fit: build the growth engine

! Post Product/Market fit: optimize the engine (make it bigger)

! Any time: generate hacks, non-obvious ways to reach your goals

Definition

Page 4: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Building the Testing Engine

1

Page 5: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

GET THE PIECES IN PLACE BEFORE ADDING GAS

Page 6: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Do things that don’t scale

Page 7: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses
Page 8: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Test yourself to product market fit

What type of product are our users interested in?

How can we reach this users the best way?

Pour Gas on it

WE HAD TO EXPERIMENT WITH A LOT OF THINGS

Page 9: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

How do you build what users actually want?

Child ID

Dog TrackerFamily Locator

Lost Phone

Ads Landing Pages

Page 10: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

THINK OF IT AS DIVIDE & CONQUER

Page 11: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Optimizing the Test Engine

2

Page 12: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses
Page 13: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

RISKLOW HIGH

Big Swings

Optimizations

REW

ARD

HIGH

Start Ups need step function take bold bets

Page 14: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Scalable growth through testing

Lather, Rinse, Repeat. Continuous Improvement

Evaluate Results

Test Design

Develop Hypothesis

Implement Leanings

Page 15: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Developing hypotheses

How to Develop Hypotheses1. Leverage the team, institutional knowledge,

understand important “Themes”

2. Qualitative studies, surveys

3. Quantitative analysis

Page 16: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Test Design

Test Design

How to Design Tests Effectively1. Determine right testing format

2. Optimize test to avoid overinvesting

3. Execute quickly, full instrumentation for analysis

Page 17: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Evaluate Results

How to Evaluate Results1. Analyze core metrics impact of each variant

2. Ensure all numbers are statistically significant

3. Understand long term impacts and side effects

Evaluate Results

Page 18: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Implement Learnings

How to Implement Learnings1. Understand what caused the change

2. Determine how this learnings applies to product aspects

3. Promote visibility of learnings/takeawaysImplement Leanings

Page 19: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Qualitative Tests Painted Door Tests Feature Tests

INVESTMENT COSTLOW HIGH

Painted Door

Top of Funnel Test

Full FeatureMany Some Few

Types of tests avoid overinvesting

Page 20: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Qualitative Tests

PurposeDetermine interest in product via conversations with your users and potential users

KeyTest as many ideas as possible but keep in mind that people want to please you

ExampleEmergency ContactsETA Sharing Carpooling

Qualitative Tests

Page 21: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Feature Tests

PurposeBuilding a functional feature and see how users interact

KeyDon’t build the full feature, start at the top of the funnel and work your way down

ExampleEmergency ContactsRecommenderFUE

Add EC

Send EC

Accept EC

Create ACT

(Partial) Feature Tests

Page 22: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Aggressive vs. Passive Tests

Passive Tests End Point Aggressive Tests

LEARNINGSLOW HIGH

Page 23: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

HOW TO TRUST YOUR RESULTS?

Page 24: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Test Design - Explicit Control Variant Allocation

Design variants to have an additional control group

➔ Ensures control group meets test user criteria➔ Reduce risk of variant assignment issues

Page 25: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Test Design - Explicit Control Variant Allocation

All Users

Page 26: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Test Design - Explicit Control Variant Allocation

Eligible for experimentIneligible for experiment

Page 27: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Test Design - Explicit Control Variant Allocation

Eligible but excluded from experiment

Ineligible for experiment Included in experiment

Page 28: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Test Design - Explicit Control Variant Allocation

Treatment 1

Eligible but excluded from experiment

Ineligible for experiment

Control Variant 1

Variant 2

Page 29: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

Test Design - Explicit Control Variant Allocation

Always consider keeping long-term holdout groups

➔ Understand potential impacts that may not be seen early in the user lifecycle

➔ Enables measurement of how impacts rollup into product growth

Page 30: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

“A GOOD PLAN, VIOLENTLY EXECUTED TODAY, IS BETTER THAN A PERFECT PLAN EXECUTED NEXT WEEK.”

GENERAL GEORGE S PATTON

Page 31: MAU Vegas 2016 — Lessons Learned From A/B Testing Wins and Losses

HERE IS WHAT I AM UP TO NEXT

[email protected]