{"id":47028,"date":"2019-11-12T09:52:45","date_gmt":"2019-11-12T14:52:45","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=47028"},"modified":"2019-11-12T09:53:43","modified_gmt":"2019-11-12T14:53:43","slug":"why-a-b-testing-is-better-than-a-then-b-guessing","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/why-a-b-testing-is-better-than-a-then-b-guessing\/","title":{"rendered":"Why A\/B testing is better than \u201cA then B\u201d guessing"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In recent years, data has dethroned oil and become the <\/span><a href=\"https:\/\/www.economist.com\/leaders\/2017\/05\/06\/the-worlds-most-valuable-resource-is-no-longer-oil-but-data\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">world\u2019s most valuable resource<\/span><span style=\"font-weight: 400;\">.<\/span><\/a><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Most companies understand the importance of data, soliciting <a href=\"https:\/\/www.sogolytics.com\/survey-templates\/customer\/customer-satisfaction-survey\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer feedback<\/a> and utilizing numerous tools for analytics. Many also appear to recognize the value of experimentation as a source for great insights. However, when it comes to executing smart business experiments, they prove that it\u2019s easier said than done.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Beyond a standalone product or website survey, A\/B testing is one of the most popular ways to gather data, particularly in online settings. Many companies use A\/B testing to measure the efficiency of two versions of a webpage expected to convert visitors into customers, like a landing page for a product. According to Invesp, <\/span><a href=\"https:\/\/learn.g2.com\/ab-testing-statistics\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">71 percent of companies run two or more A\/B tests a month<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">But what exactly is an A\/B test, why is it important, and what advantages does it offer over the guessing methods many people still use?<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2><b>What is A\/B testing?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A\/B testing is controlled experimentation that allows you to simultaneously compare \u201clike for like\u201d scenarios where one version has a different element. \u2018Bucket\u2019, \u2018split\u2019, or \u2018split-run\u2019 tests are other names for this type of experiment.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">A\/B tests involve the use of a randomly selected \u201ccontrol group\u201d and a \u201ctreatment group.\u201d The control group represents the experiment\u2019s comparison standard. You use this set of individuals to establish the baseline measure.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">In the context of webpage testing, these are the visitors you send to your current version of a given page, one with a conversion rate you\u2019re looking to improve.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">The treatment group, on the other hand, are the recipients of the experiment\u2019s varied element. These visitors will instead be directed to the new version of the same page which you\u2019ve come up with to test. It might have a different offer, color scheme, or call to action.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">An A\/B testing tool then measures each group\u2019s engagement with the page to find out which version is the most popular. In short, the tool will tell you which page is more successful at converting leads into customers.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Since you\u2019ve only changed one aspect of the page, you can reasonably assume that the change is responsible for any differences in conversion rates, as long as you\u2019ve had a reasonable amount of traffic to each version.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">As well as webpages, A\/B testing can be run for emails, multimedia marketing strategies, paid internet advertising, and newsletters &#8212; nearly any step in the <a href=\"https:\/\/www.sogolytics.com\/blog\/how-to-improve-customer-experience\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer journey<\/a>. Web design is the most popular form, though, offering so many ways to control visitors&#8217; experience and such rich opportunities to increase traffic and conversion and lower bounce rates.<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<div><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-47029\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2019\/11\/GettyImages-1150968776-1024x771.jpg\" alt=\"\" width=\"1024\" height=\"771\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2019\/11\/GettyImages-1150968776-1024x771.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2019\/11\/GettyImages-1150968776-300x226.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2019\/11\/GettyImages-1150968776-768x578.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2019\/11\/GettyImages-1150968776-50x38.jpg 50w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/div>\n<div><\/div>\n<h2><b>What is the alternative to A\/B testing?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Ignoring the benefits of A\/B testing, many companies still rely on what we\u2019ve termed \u201cA then B guessing\u201d. This is when a new version of a page is created, is put online, and then its performance is measured without concurrent testing of the old version.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Imagine for a moment that you\u2019re thinking of changing the background color of your landing page to boost conversions. To evaluate the effect of this change, you create two versions of the same landing page. One version is the original page with the present color. The other is the new selection.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Here\u2019s what happens next if you\u2019re following A\/B test best practices. You\u2019ll split your website traffic randomly and equally. One set of visitors will see the original version while the other views the modified version.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Now imagine making that same change but doing the following instead: instead of splitting your audience, you deploy the updated version to your entire audience.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">How would you know whether any variations reported are the result of the color change? This method includes far too many variables to be successful. What if an increase in traffic is down to seasonality of your site, or a new ad campaign you started, or some recent press? By evaluating two versions simultaneously, you negate these effects.<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2><b>What about A\/A testing?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">We should briefly mention another form of testing: A\/A testing. A\/A testing is similar in some ways to A\/B testing. Both experiments call for the use of a \u201ccontrol group\u201d and a \u201ctreatment group.\u201d However, an A\/A test has one significant difference: there is no disparity between the two testing scenarios. In essence, you\u2019re testing the same thing against itself.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Validating the accuracy of A\/B testing tools is the main reason why people run an A\/A test. This type of analysis can also help to determine the baseline conversion rate and optimal sample size.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">It can also ensure your tools are working as expected, though to save time, we\u2019d recommend simply properly testing your page and tools during development. This ensures you don\u2019t spend additional time on a test that doesn\u2019t help you improve conversions.<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2><b>Real world A\/B test examples<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The following examples from multinational companies can give you an idea of how the A\/B testing process works.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<h3><a href=\"https:\/\/www.thinkwithgoogle.com\/intl\/en-145\/automotive\/unskippable-labs-mercedes-video-case-study-luxury-price\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Mercedes<\/span><\/a><\/h3>\n<p><span style=\"font-weight: 400;\">Conventional wisdom says that mentioning price in a luxury ad is tacky. Mercedes used A\/B testing to obtain a definitive, unbiased response. The company created three versions of a luxury ad campaign:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">One design didn\u2019t mention price at all.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Another featured it prominently.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">For the third version, the price had a peripheral placement.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For millennials, featuring price turned out to be the most important factor in considering the purchase of a luxury car.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<h3><a href=\"https:\/\/blog.optimizely.com\/2014\/02\/03\/case-study-sony-ab-tests-banner-ads\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Sony Europe<\/span><\/a><\/h3>\n<p><span style=\"font-weight: 400;\">Sony Europe\u2019s marketing team chose not to emphasize the personalization aspect of their customizable laptops in their banner ads. Their reasoning was that they expected it to be off-putting to customers. However, the click-through-rates of the new campaign were unimpressive.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">To establish their customers\u2019 preferences, the company created two new variants of the existing advertisement. One version stressed the personalization aspect, while the other advertised a promotion. They ran the three versions concurrently.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">To their surprise, the test disproved their hypothesis. The personalization-focused ad was the best performer.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<h3><a href=\"https:\/\/www.businessinsider.com\/tropicana-packaging-change-failure-2013-9?IR=T\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">PepsiCo<\/span><\/a><span style=\"font-weight: 400;\"> (a cautionary tale)<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In 2009, PepsiCo took on a 35-million-dollar rebranding campaign for its orange juice brand Tropicana. The changes left the product unrecognizable to their existing customer base.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Gone was the image of a whole orange with a red and white striped straw sticking out of it. In its place was a clear glass of orange juice. What once stood out like a premium product now resembled a generic store brand.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Sales dropped by 20 percent, representing a 30-million-dollar loss nationally. Less than two months after its deployment, the old version was back. Between the rebrand and the restock, Pepsico spent over $50 million. Ouch!<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">For the record, it\u2019s unclear whether the team behind the rebrand ran an A\/B test before changing the design. However, the project\u2019s outcome makes many advertisers feel that it was either overlooked or at best poorly executed.<\/span><\/p>\n<div class=\"div-spacer\"><\/div>\n<h2><b>Why you should run A\/B testing<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Today\u2019s business environment is fast-paced and hyper-competitive. Companies wishing to thrive under these conditions must become adept at decision making. A McKinsey Global Survey found that <\/span><a href=\"https:\/\/www.mckinsey.com\/business-functions\/organization\/our-insights\/decision-making-in-the-age-of-urgency\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">organizations that excel at decision making make good decisions fast<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">A\/B testing tools can help you make data-driven decisions faster. Additionally, this type of test is cost-effective and time-efficient to execute. You also don\u2019t need loads of traffic, so you\u2019ll receive actionable insights faster.<\/span><\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><span style=\"font-weight: 400;\">Using this testing strategy, you can improve content engagement, reduce bounce rates, and achieve higher conversion rates and sales.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"divider divider1\" style='margin:60px 0px 60px 0px !important;'><\/div>\nMore data, more insights, more improvements. What have <strong>you<\/strong> learned today?<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Keep the data coming and <a href=\"https:\/\/www.sogolytics.com\/customer-experience-survey\/\" target=\"_blank\" rel=\"noopener noreferrer\">improve your customer experience now<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In recent years, data has dethroned oil and become the world\u2019s most valuable resource. Most companies understand the importance of data, soliciting customer feedback and utilizing numerous tools for analytics. Many also appear to recognize the value of experimentation as a source for great insights. However, when it comes to executing smart business experiments, they prove that it\u2019s easier said than done. Beyond a standalone product or website survey, A\/B testing is one of the most popular ways to gather data, particularly in online settings. Many companies use A\/B testing to measure the efficiency of two versions of a webpage expected to convert visitors into customers, like a landing page for a product. According to Invesp, 71 percent of companies run two or more A\/B tests a month. But what exactly is an A\/B test, why is it important, and what advantages does it offer over the guessing methods many people still use? What is A\/B testing? A\/B testing is controlled experimentation that allows you to simultaneously compare \u201clike for like\u201d scenarios where one version has a different element. \u2018Bucket\u2019, \u2018split\u2019, or \u2018split-run\u2019 tests are other names for this type of experiment. A\/B tests involve the use of a randomly selected \u201ccontrol group\u201d and a \u201ctreatment group.\u201d The control group represents the experiment\u2019s comparison standard. You use this set of individuals to establish the baseline measure. In the context of webpage testing, these are the visitors you send to your current version of a given page, one with a conversion [&hellip;]<\/p>\n","protected":false},"author":26,"featured_media":5036,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[204,75],"tags":[19,369,73],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why A\/B testing is better than \u201cA then B\u201d guessing - Sogolytics Blog<\/title>\n<meta name=\"description\" content=\"Making decisions is one of the most challenging steps in business and in life in general! Why not test for success before you risk it all?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sogolytics.com\/blog\/why-a-b-testing-is-better-than-a-then-b-guessing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why A\/B testing is better than \u201cA then B\u201d guessing - Sogolytics Blog\" \/>\n<meta property=\"og:description\" content=\"Making decisions is one of the most challenging steps in business and in life in general! Why not test for success before you risk it all?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sogolytics.com\/blog\/why-a-b-testing-is-better-than-a-then-b-guessing\/\" \/>\n<meta property=\"og:site_name\" content=\"Sogolytics Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-11-12T14:52:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-11-12T14:53:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2018\/12\/cust-4.png\" \/>\n\t<meta property=\"og:image:width\" content=\"487\" \/>\n\t<meta property=\"og:image:height\" content=\"714\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Jake Burgess\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/why-a-b-testing-is-better-than-a-then-b-guessing\/\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/why-a-b-testing-is-better-than-a-then-b-guessing\/\",\"name\":\"Why A\/B testing is better than \u201cA then B\u201d guessing - Sogolytics Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#website\"},\"datePublished\":\"2019-11-12T14:52:45+00:00\",\"dateModified\":\"2019-11-12T14:53:43+00:00\",\"author\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/e31925fdcd74025f92fb3b1695e61a8f\"},\"description\":\"Making decisions is one of the most challenging steps in business and in life in general! 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