A/B Testing: It’s So Effective, Everyone Should Do It

In any company, it is important to make sure that there is enough research to back up your reasoning. One way that marketers and managers have found to be effective is A/B testing. This type of experimentation has been helpful in letting businesses know what should be changed and what the next steps are.

What is A/B Testing

A/B testing is a form of experimentation that puts two versions of something to figure out which performs better. “Companies have realized that the online environment is well-suited to help managers, especially marketers, answer questions like, ‘What is most likely to make people click? Or buy our product? Or register with our site?’.” (A Refresher on A/B Testing)

How to Use A/B Testing

Once you decide what factors you want to test, you will get the results as percentages and margins of error. “If you ran your A/B test multiple times, 95% of the ranges will capture the true conversion rate (A Refresher on A/B Testing).” Usually, it is a good decision to go with the option with the higher conversion rate.

In A/B testing, you test your control ad against one that has been changed to see which is most effective.

What Is The Need?

“One of the advantages to testing in the online world is that you can usually revert back to your original pretty easily (A Refresher on A/B Testing).” A/B testing can be used on marketing emails/ads by sending different versions of the same ad and seeing which gets the higher conversion rate.

The use of experimentation in the marketing world is also important because it can get feedback on what to do to websites and ads to get more customers and to get customers to make more purchases. “If a company sets up the right infrastructure and software, it will be able to evaluate ideas not only for improving websites but also for new business models, products, strategies, and marketing campaigns—all relatively inexpensively (The Surprising Power of Online Experiments).” Big companies such as Microsoft and Amazon are well-known for performing thousands of online controlled experiments every year. The ability for any company to be able to reach many customers and very quickly gather large amount of information about how these customers interact with the company’s website and apps gives the companies an unmatched opportunity to gather and assess ideas quickly, precisely and at a low cost.

Real-Life Example

Experiments can also help businesses determine in something should or should not be invested in. One example of this is Microsoft. Microsoft was trying to reduce the time taken for Bing to display search results. The company utilized an A/B test where “artificial delays were added to study the effects of minute difference in loading speed.” (The Surprising Power of Online Experiments) It relayed back to the experimenters that every time the performance was delayed by 0.1 second, it would affect the revenue of the company. They determined that a speedup would be worth millions of dollars in revenue and should be applied.

Overall, experimentation is a useful and cost-friendly way for marketers and companies to make sure that what they are doing is really working for their company and for their customers. A simple A/B could be the difference between a million-dollar company and a billion-dollar company.

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