METHOD 2 : EXPERIMENTATION
INCREASING YOUR REVENUE PER VISITOR WITH TESTING
Successful enterprise companies from Microsoft to Intuit tout the advantages of an experimentation program, yet many businesses still rely on gut instinct for decision-making. Wouldn’t you rather know, quantifiably, that data-driven optimizations benefit the bottom line? A strong test-and-learn culture creates insight momentum and propels improved decisions for the future. A successful experimentation program increases your revenue, mitigates risk, and reveals actionable business insights. However, the perfect mix of experimentation factors is up to you based on what your marketing team aims to accomplish. How experimentation increases revenue There’s a reason A/B testing is synonymous with CRO in ecommerce. Primarily, it’s one of the simplest and most powerful techniques to guide and measure incremental changes on everything from feature flag design to checkout UX performance. How experimentation uncovers actionable business insights If your win rate is lower than expected, or your experiments produce diminishing results, you should think bigger. Take a step back from the basic playbook and put yourself in the mind of your consumer. It might take three or four incremental experiments to accomplish your goal, as each subsequent experiment uncovers insights that lead to increased success rates. Once your major goals are identified, you’ll need to determine which experimentation methods to implement. Industry studies discuss the merits of Bayesian vs. frequentist testing , sequential testing , multi-armed bandits , multivariate experiments , and many other techniques to optimize performance, but don’t underestimate the value of multivariate testing. It takes more planning, analysis and time than simple A/B testing, but you get richer data in the end.
Data to Dollars
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