Essential A/B testing techniques for business success

Making decisions rooted in concrete data is essential when trying to beat out competitors and win customers. A/B testing offers a refined methodology for this, giving you a structured way to evaluate various aspects of your business operations. Whether you’re tinkering with website design, modifying a product launch email, or revising your mobile app, A/B testing allows you to make these changes in a controlled environment.

This article serves as a comprehensive guide, breaking down the complexities of A/B testing into manageable insights. We cover everything from the underlying principles to actionable strategies, all tailored to help you navigate the ins and outs of effective A/B testing.

What is A/B testing?

A/B testing, also known as split testing or bucket testing, is an experimental approach used to compare two versions of a variable (webpage, email, app, or other marketing asset) against each other to determine which performs better. The process involves showing the “A” version to one group of users and the “B” version to another, then using data analytics to measure the performance of each based on a specific metric such as click-through rates, conversion rates, or time spent on page.

The ultimate goal for businesses is to identify changes that increase or optimize a particular outcome, enabling data-driven decisions that enhance profitability and customer satisfaction.

A/B test vs multivariate test vs multipage testing

Each testing type serves different needs, with A/B tests being the simplest and multivariate and multipage tests requiring more resources and complexity. Choose the type that aligns with your specific objectives and constraints.

A/B Test

In A/B testing, you create two versions of the same element to see which one yields better results. It’s the most straightforward form of testing, ideal for businesses that are new to the concept. Unlike multivariate or multipage testing, it focuses on one variable at a time, making it easier to pinpoint what exactly is affecting performance.

• What: Compares two versions (A and B) of a single variable.
• Ideal for: Simple changes like button color or headline text.
• Ease of use: Simplest and easiest to implement.

Multivariate test

Multivariate testing allows you to change multiple elements at once to see how the combinations impact performance. This is more complex than A/B testing and is ideal for websites or apps that already have substantial traffic. Because it tests multiple variables, it requires a higher sample size to yield statistically valid results.

• What: Tests multiple variables simultaneously.
• Ideal for: Complex changes involving multiple elements like images, text, and layout.
• Ease of use: Requires more traffic and resources to be statistically significant.

Multipage Testing

Multipage testing focuses on the user journey across several interconnected pages. This is particularly useful for optimizing processes like checkout flows or sign-up sequences. Unlike A/B or multivariate tests that focus on single or multiple variables within one page, multipage testing evaluates how changes on one page may affect behavior on subsequent pages.

• What: Tests changes across a series of linked pages, like a checkout process.
• Ideal for: Optimizing multi-step user journeys.
• Ease of use: Complex to set up, as it examines user behavior across multiple pages.

How does A/B testing work?

A/B testing operates through a series of methodological steps designed to isolate the effect of a single variable on a specified outcome. Below are the steps that explain how it fundamentally works:

1. Randomized sampling: Two groups are randomly selected from your target audience. This ensures that both groups are statistically equivalent, making the comparison valid.
2. Controlled exposure: One group is exposed to the original version (A), while the other experiences the modified version (B). The setup is carefully controlled to ensure that no other variables interfere with the outcome.
3. Metric monitoring: During the testing period, specific metrics like conversion rates, click-through rates, or time spent on the webpage are closely monitored. These metrics are directly tied to the objective you wish to optimize.
4. Data collection: Data from both groups are collected and prepared for analysis. This data reveals how each group interacted with the variable being tested, such as a button or a piece of content.
5. Statistical analysis: Finally, the data is subjected to statistical analysis to determine whether the observed differences in metrics are significant. If significant, the variation that performed better is typically implemented as the new standard.

Why should you conduct A/B testing?

A 2020 working paper from Harvard Business School found that A/B testing is associated with a 5-20% increase in page visits after adoption. A/B testing is a valuable tool for optimizing various elements of your business, from marketing campaigns to website design. By employing a structured approach to compare two versions of a variable, you can make data-driven decisions that enhance user experience, improve conversion rates, and ultimately increase profitability.

Optimize your website for customers

A well-executed A/B test can give you invaluable insights into customer behavior and preferences. By testing elements such as layouts, color schemes, and calls to action, you can create a user experience that resonates with your audience. A site tailored to customer preferences not only satisfies users but also encourages repeat visits.

Get more out of your existing traffic

Increasing web traffic can be time-consuming and costly. A/B testing allows you to optimize your existing traffic by making small, impactful changes. By fine-tuning your site or app to better meet user needs, you make the most of the visitors you already have, driving up engagement and conversions without needing more traffic.

Lower your bounce rate

A high bounce rate signals that users are not finding what they need or expect on your site. A/B testing enables you to identify the elements that may be causing users to leave. By optimizing these elements, you can decrease your bounce rate, keeping visitors engaged and leading them further into your conversion funnel.

See higher ROI and conversion rates

A/B testing offers a relatively low-cost way to make impactful changes that can significantly increase ROI. By identifying and implementing the most effective version of a given element, you boost conversion rates. Increased conversions often lead to increased revenue, maximizing the return on your original investment.

Make data-driven decisions

Gut feelings and hunches can be unreliable and costly in business, especially as you try to find product-market fit. A/B testing provides concrete data on what works and what doesn’t. This empowers you to make decisions based on empirical evidence, minimizing risks and enhancing the likelihood of meeting your business objectives.

A/B testing mistakes to avoid

Conducting A/B tests effectively can provide a wealth of actionable data to optimize your business operations. However, mistakes can easily creep into the testing process, yielding unreliable results. To gain the most from your A/B split, it’s crucial to avoid these common pitfalls.

Not understanding your baseline

Before initiating any A/B test, you need to establish a baseline metric to serve as a reference point for performance. Without a baseline, you won’t clearly understand whether the changes made in your test version are truly impactful. This could lead to misleading test results and poorly informed decisions. Therefore, always measure the metric you plan to improve beforehand, setting a clear foundation for evaluating your A/B testing outcomes.

Failing to create a proper hypothesis

A vague or poorly formulated hypothesis can severely compromise your test’s validity. Your hypothesis should state what you aim to prove and specify the metrics that will be affected. A clear, well-defined hypothesis allows you to design your test effectively, targeting the right elements for change. This level of specificity makes the interpretation of results straightforward, be it from A/B tests or more intricate multivariate tests.

Testing too many variables at once

When you test multiple variables simultaneously, you risk confusing the results to the point that it becomes unclear which variable caused the observed changes. A/B tests are most effective when isolating a single variable, like a headline or a button color. Multivariate tests can handle more variables, but they require a larger sample size and more complex analysis. Stick to single-variable A/B tests for straightforward insights and only use multivariate tests when you’re comfortable with more complex data interpretation.

Selecting an inappropriate time frame

The duration of your test can significantly impact its reliability. Too short a time frame, and you may not collect enough data for statistical significance; too long, and your results could be skewed by external variables like seasonal trends. Choose a time frame that aligns with your business cycles and allows enough time to reach a statistically significant sample size. Review past tests or industry benchmarks to get a sense of the appropriate duration for your specific test.

Insufficient sample size

An inadequate sample size can result in misleading data that fails to represent your overall audience. It’s essential to calculate the required sample size before initiating your test to ensure that the results are statistically significant. This is particularly crucial for specialized tasks such as split testing or testing ad copy. A sufficient sample size ensures that you can trust the results and that they are likely to be replicable in future tests.

Using the wrong tools

Not every testing tool is created equal, and using the wrong one can hinder your test’s effectiveness. If your project involves specialized requirements, like multipage testing or testing email subject lines, you’ll need a tech stack that can handle those specific tasks. A poorly chosen tool can limit your testing capabilities, provide inaccurate data, or make it difficult to implement changes based on your test results. Take the time to select a tool that aligns with your objectives and offers the metrics and features you need.

What can you A/B test?

A/B testing isn’t limited to just one platform or medium; it’s versatile and can be applied across various channels such as websites, apps, and email marketing. By running A/B tests, you can improve various elements that contribute to user experience and conversions. Below are some common elements you can A/B test to optimize your digital assets.

• Headlines: A headline is often the first thing a user sees, making it critical to capture attention. A/B testing different headlines can help you understand which phrasing or style resonates most with your audience.
• Layouts: The layout of your web page or app influences how easily users can navigate and find what they’re looking for. Testing different layouts can provide insights into how to structure your content for better user engagement.
• Navigation menus: Your navigation menu is a roadmap to your website or app. A/B testing can reveal which menu structures or labeling techniques help users navigate your site more efficiently.
• Images: Visual content plays a significant role in user engagement. Testing different images can help you discover which visuals are more appealing or effective in conveying your message.
• Copy and content: The text on your site, app, or email can significantly impact conversions. A/B testing different copy can identify what language and messaging are most effective for your audience.
• Subject lines: The subject line is a determining factor in whether an email gets opened. Testing different subject lines can help you find the phrasing that yields the highest open rates.
• Forms: Forms are often where users convert from visitors to leads or customers. A/B testing different form structures or fields can uncover what version has a higher completion rate.
• Call-to-actions (CTAs): Your CTA is what prompts users to take action, be it signing up, buying a product, or clicking through to another page. Testing different CTAs can show you which prompts are most effective in encouraging users to take desired actions.

A/B testing use cases

A/B testing is a versatile tool that can be applied across multiple industries to optimize performance. Here we discuss specific use cases in four industries:

E-commerce

In e-commerce, A/B test website elements like product descriptions, images, and checkout button colors to improve conversion rates.

To boost conversion rates on their website, ion interactive and DHL Express conducted an A/B test where they compared a previously successful template to a new variant. The new template made two key changes: it enhanced the visibility of a form by relocating it to the top right corner, adjacent to a courier image, and swapped a logistics-related image with a friendly male courier image. Through these changes, they created a more engaging and visually appealing landing page, which successfully led to a 98% increase in conversion rates.

Publishing

Publishing websites can A/B test headlines, content layouts, and even subscription prompts. Knowing which elements readers find engaging can help tailor the content strategy.

Netflix uses A/B testing to optimize aspects like streaming quality and UI design. For instance, they ran a test to determine which image for a title entices more views, by having different variations (cells) in the experiment. Metrics are tracked once the test is live, and based on the data, they identify the winning variation, which in the case of image selection, led to a precise choice of artwork for better user engagement. This structured approach aids Netflix in making data-driven decisions to enhance the user experience on their platform.

Software and SaaS

For software and SaaS companies, A/B testing is used to optimize user interfaces, feature adoption rates, and pricing structures.

HubSpot conducted an A/B test comparing the more effective method for collecting customer reviews, comparing email requests to in-app notifications. Contrary to their initial expectation that in-app notifications would garner better responses, they discovered that emails were substantially more effective. Specifically, 24.9% of recipients who opened the email left a review, significantly outperforming the 10.3% review rate from those who opened the in-app notification.

7 A/B testing tools to try

Navigating the landscape of A/B testing tools can be overwhelming, given the many options available—from marketing tools to analytics solutions. Here we’ve curated a list of seven tried-and-true platforms, each with unique features, to help you decide on your testing needs.

1. Google Optimize

Google Optimize is a free tool that integrates seamlessly with Google Analytics. It allows for simple A/B tests and has some multivariate testing capabilities.

2. Optimizely

Optimizely offers robust A/B testing options along with multivariate and multi-page testing. It’s designed for those looking to optimize their web and mobile apps without needing deep technical expertise.

3. Adobe Target

Adobe Target is an A/B testing tool integrated within the Adobe Marketing Cloud. It allows you to personalize content and run A/B tests to improve user experience and engagement.

4. Unbounce

Unbounce focuses on landing page A/B testing, allowing you to easily build, publish, and test landing pages. It’s aimed at small to medium-sized businesses and marketing agencies.

5. Convert

Convert is an A/B testing tool that prioritizes data privacy and GDPR compliance. It offers features like split testing, multivariate testing, and multi-domain tracking.

6. AB Tasty

AB Tasty is designed for marketing teams to easily perform A/B, multivariate, and split testing without requiring a deep understanding of coding. It also offers personalization and feature management functionalities.

7. Zoho PageSense

Zoho PageSense provides an intuitive interface for A/B, split URL, and multivariate testing. It integrates easily with Zoho’s suite of business applications, making it convenient for those already using Zoho products.

8 steps to set up your A/B testing process

1. Identify a variable

Start by pinpointing a specific element you want to test—this could be a headline, CTA button, or even the layout of a webpage. The variable should be something that you hypothesize will have a direct impact on your desired metric, like click-through rate or conversions. The clearer the variable, the easier it will be to interpret your test results. Make sure this variable aligns with your overall business goals.

2. Develop a hypothesis

Formulate a testable hypothesis that predicts the expected outcome of changing your identified variable. The hypothesis should be specific, measurable, and directly related to the variable you are testing. For instance, “Changing the CTA button color to green will increase click-through rates by 10%.” This hypothesis will guide your A/B test and provide a basis for analysis.

3. Create your variations

Develop the variations that you’ll be testing against the original version. If you’re testing a headline, for example, create a new headline that you think will perform better than the existing one. Ensure that the changes are implemented correctly and that you only change the variable you intend to test. Multiple changes can confound your results.

4. Set your test period

Determine the length of time you’ll run your A/B test. The test period needs to be long enough to gather sufficient data but short enough to act upon quickly. Keep in mind that the ideal time frame may vary based on the variable you’re testing and the amount of traffic you receive. Mark the start and end dates clearly.

5. Run the A/B test

After preparations are complete, launch the A/B test. During this phase, half of your audience will see the original version while the other half will see the variation. Ensure that the test runs without interruptions and that the data collected is reliable. Any anomalies should be noted and investigated.

6. Analyze and interpret results

Once the test period ends, collect and analyze your data. Check for statistical significance to ensure that your results are not due to random chance. Compare the performance metrics of the original and the variation, keeping your initial hypothesis in mind. A well-designed A/B test should provide clear insights into whether the hypothesis is correct or not.

7. Make the winning changes

After interpreting the results, implement the winning variation. If your hypothesis was correct and the new version outperformed the original, integrate the successful changes into your webpage, email, or app. The goal here is to make data-driven improvements that positively impact your key performance indicators (KPIs).

8. Plan your next A/B test

A/B testing is an ongoing process. Take the learnings from your initial test and think about what other variables you could optimize as part of your overall startup marketing plan. Whether your first test was successful or not, there’s always another metric to improve or another hypothesis to test. Prioritize your next test based on potential impact and alignment with business objectives.

Build Your Company with DigitalOcean

At DigitalOcean, we understand the unique needs and challenges of startups and small-to-midsize businesses. Experience our simple, predictable pricing and developer-friendly cloud computing tools like Droplets, Kubernetes, and App Platform.

Sign-up for DigitalOcean