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`A/B Testing 101:
Off To A Great Start
THUE MADSEN
Thue is the Kissmetrics Webinar Wizard and Marketing Ops Manager. Before
joining forces with Kissmetrics, he was a Lyft driver in SF, which is also how
he ended up as a KISSmetrics marketer. Whenever Thue is not trying to
automate everything around him, you can find him hiking in the Sierras.
THUE MADSEN
Marketing Operations Manager, Kissmetrics
@ThueLMadsen
@thuelmadsen
#Kisswebinar
@Kissmetrics
The don’ts…
The dos…
1 What is A/B testing?
Do your homework
Repetition
Succeed
2 Where do you start testing?
TABLE OF CONTENTS
3 A framework for success
Tooltips and Burgers4
What is A/B testing?
A SCIENTIFIC METHOD OF PROOF
WHAT IS A/B TESTING FOR MARKETING
• A scientific method adapted for marketing
• Compare two or more versions of an asset to each other
• Use data and statistics to determine which version is better
• Implement winner and increase conversions
*Image from Optimizely
HOW DOES A/B TESTING WORK?
*Image from Kikolani
HOW DOES A/B TESTING WORK?
*Image from Dynamicyield
HOW DOES A/B TESTING WORK?
SO WHY DO WE A/B TEST?
• Lowers risk
• Helps us realize the actual impact of proposed changes
• Increase learnings
• Takes the guess work out of optimization
How do you start testing?
THE DON’TS
*Image from Optimizely
WHERE DO YOU START TESTING?
DON’T JUST GUESS
SUB OPTIMIZE
• Button colors
• Small copy changes
• Small layout changes
• Fonts, font size, etc.
* at least not until you have found 

a great variation and have lots of traffic
WATCH OUT FOR BUZZ
• Don’t just test what the gurus say
• What works for others may not work for you
PREMATURE TESTING
• Testing without an audience/traffic
• Before you know what and why you are testing
Where do you start testing?
THE DOS
DO YOUR HOMEWORK
You have to put in the work to get great results
• Learn as much as you can about A/B testing
• Study the great people out there
• What’s their process and insights?
A framework for success
The basis of a successful testing program
Research
Know what to test and see the greatest improvements
DIVE INTO YOUR DATA
PaidEntered CCAdded to CartViewed Product
FIND YOUR BIGGEST OPPORTUNITIES
PaidViewed CheckoutAdded to CartViewed Product
INVESTIGATE THE OPPORTUNITY TO UNDERSTAND IT
And/Or
INVESTIGATE THE OPPORTUNITY TO UNDERSTAND IT
* peek.usertesting.com/
INVESTIGATE THE OPPORTUNITY TO UNDERSTAND IT
FORM A HYPOTHESIS
By doing A,
B will happen,
Because of C
FORM A HYPOTHESIS
By focusing on the benefits of Kissmetrics instead its features (A),
We will get more prospects to sign up for a trial (B),
Because people understand the value of the product (C).
BUILD THE TEST
BUILD THE TEST
VS.
Control Variant
MEASURE THE TEST
VS.
Control Variant
LAUNCH THE TEST
CALL THE TEST
VS.
Control Variant
+17.74% increase
in registrations!!
98% Significance
DOCUMENT AND SHARE YOUR FINDINGS
DOCUMENT AND SHARE YOUR FINDINGS
Documenting all your tests and results
• Increases company transparency
• Helps others know where tests are going on
• Makes it easier to call tests
• Makes learnings available for everyone in company
*Image from Optimizely
REPEAT THE PROCESS AS OFTEN AS POSSIBLE
A STORY OF OUR FAILURE
VS
Control Variant
A STORY OF OUR FAILURE
VS
A STORY OF OUR FAILURE
VS
-13.68% increase
in registrations!!
80% Significance
*Quote found on VWO
NOT ALL TESTS ARE WINNERS
““Only 1 out of 8 A/B tests have driven
significant change.”
Noah Kagan
AppSumo*
““The goal of a test is to get a learning,
not a lift. With enough learnings, you
can get the real lift,”
Dr. Flint McGlaughlin
MECLABS**
**Quote found on MarketingSherpa
RULES OF THUMB FOR TESTING
Things to remember when we are testing
• Min. 2000 visitors
• Min. a few hundred conversions
• At least one full cycle > 2 week
• >99% statistical significance
• Keep a backlog of test hypothesis
• Build next tests as the current one is running
*More info at http://kiss.ly/1vF4wUc and http://kiss.ly/1Q4vTm0
Tooltips
AND BURGERS
How I like my testing burger
Tooltips for your testing framework
Tool Company Why do I like it?
Analytics Kissmetrics
Shows me my actual
customers and their
behavior
Qualitative Research
Qualaroo,
SurveyMonkey,
Usertesting
Easy to use/Deep
qualitative insights
Project Management Trello
Manage my time +
communicate with
collaborators
Tool Company Why do I like it?
Company Wiki Confluence
Document initial
thoughts for everyone
Testing platform*
Optimizely, Pardot,
Adwords
Easily build tests and
get data
Analytics Kissmetrics
Let’s me confirm and
verify down my funnel
Company Wiki Confluence
Documentation and
learnings for
everyone
*Includes actual testing platform and tools that have testing capabilities
Not everyone likes their
burger the same way
How do you take yours?
Trust the process
Share your leanings
Stack your results
A/B TESTING FOR SUCCESS
*Image from Optimizely
REPEAT THE PROCESS AS OFTEN AS POSSIBLE
FEEL LIKE A WINNER AND TAKE A VACATION
Get Our Free PDF Guide to A/B Testing
Appsumo reveals its A/B testing secret: only 1 out of 8 tests produce results
MORE RESOURCES…
A Beginner’s Guide To A/B Testing: An Introduction
How to Run AB Tests that Get REAL Results
Statistical Significance Does Not Equal Validity (or Why You Get Imaginary Lifts)
How Big is the Difference Between Being 90% and 99% Certain?
My 7 Rules for A/B Testing That Triple Conversion Rates
Optimizely: What is A/B Testing
How To Determine The Statistical Significance Of An A/B Test – Basic Introduction
How to Determine Statistical Significance When A/B Testing With Divi Leads
THUE MADSEN
Marketing Operations Manager, Kissmetrics
@ThueLMadsen
tmadsen@kissmetrics.com
Questions?

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A/B Testing 101: Off To A Great Start

  • 1. `A/B Testing 101: Off To A Great Start THUE MADSEN
  • 2. Thue is the Kissmetrics Webinar Wizard and Marketing Ops Manager. Before joining forces with Kissmetrics, he was a Lyft driver in SF, which is also how he ended up as a KISSmetrics marketer. Whenever Thue is not trying to automate everything around him, you can find him hiking in the Sierras. THUE MADSEN Marketing Operations Manager, Kissmetrics @ThueLMadsen
  • 4. The don’ts… The dos… 1 What is A/B testing? Do your homework Repetition Succeed 2 Where do you start testing? TABLE OF CONTENTS 3 A framework for success Tooltips and Burgers4
  • 5. What is A/B testing? A SCIENTIFIC METHOD OF PROOF
  • 6. WHAT IS A/B TESTING FOR MARKETING • A scientific method adapted for marketing • Compare two or more versions of an asset to each other • Use data and statistics to determine which version is better • Implement winner and increase conversions
  • 7. *Image from Optimizely HOW DOES A/B TESTING WORK?
  • 8. *Image from Kikolani HOW DOES A/B TESTING WORK?
  • 9. *Image from Dynamicyield HOW DOES A/B TESTING WORK?
  • 10. SO WHY DO WE A/B TEST? • Lowers risk • Helps us realize the actual impact of proposed changes • Increase learnings • Takes the guess work out of optimization
  • 11. How do you start testing? THE DON’TS
  • 12. *Image from Optimizely WHERE DO YOU START TESTING?
  • 14. SUB OPTIMIZE • Button colors • Small copy changes • Small layout changes • Fonts, font size, etc. * at least not until you have found 
 a great variation and have lots of traffic
  • 15. WATCH OUT FOR BUZZ • Don’t just test what the gurus say • What works for others may not work for you
  • 16. PREMATURE TESTING • Testing without an audience/traffic • Before you know what and why you are testing
  • 17. Where do you start testing? THE DOS
  • 18. DO YOUR HOMEWORK You have to put in the work to get great results • Learn as much as you can about A/B testing • Study the great people out there • What’s their process and insights?
  • 19. A framework for success The basis of a successful testing program
  • 20. Research Know what to test and see the greatest improvements
  • 21. DIVE INTO YOUR DATA PaidEntered CCAdded to CartViewed Product
  • 22. FIND YOUR BIGGEST OPPORTUNITIES PaidViewed CheckoutAdded to CartViewed Product
  • 23. INVESTIGATE THE OPPORTUNITY TO UNDERSTAND IT And/Or
  • 24. INVESTIGATE THE OPPORTUNITY TO UNDERSTAND IT * peek.usertesting.com/
  • 25. INVESTIGATE THE OPPORTUNITY TO UNDERSTAND IT
  • 26. FORM A HYPOTHESIS By doing A, B will happen, Because of C
  • 27. FORM A HYPOTHESIS By focusing on the benefits of Kissmetrics instead its features (A), We will get more prospects to sign up for a trial (B), Because people understand the value of the product (C).
  • 32. CALL THE TEST VS. Control Variant +17.74% increase in registrations!! 98% Significance
  • 33. DOCUMENT AND SHARE YOUR FINDINGS
  • 34. DOCUMENT AND SHARE YOUR FINDINGS Documenting all your tests and results • Increases company transparency • Helps others know where tests are going on • Makes it easier to call tests • Makes learnings available for everyone in company
  • 35. *Image from Optimizely REPEAT THE PROCESS AS OFTEN AS POSSIBLE
  • 36. A STORY OF OUR FAILURE VS Control Variant
  • 37. A STORY OF OUR FAILURE VS
  • 38. A STORY OF OUR FAILURE VS -13.68% increase in registrations!! 80% Significance
  • 39. *Quote found on VWO NOT ALL TESTS ARE WINNERS ““Only 1 out of 8 A/B tests have driven significant change.” Noah Kagan AppSumo* ““The goal of a test is to get a learning, not a lift. With enough learnings, you can get the real lift,” Dr. Flint McGlaughlin MECLABS** **Quote found on MarketingSherpa
  • 40. RULES OF THUMB FOR TESTING Things to remember when we are testing • Min. 2000 visitors • Min. a few hundred conversions • At least one full cycle > 2 week • >99% statistical significance • Keep a backlog of test hypothesis • Build next tests as the current one is running *More info at http://kiss.ly/1vF4wUc and http://kiss.ly/1Q4vTm0
  • 42. How I like my testing burger Tooltips for your testing framework
  • 43. Tool Company Why do I like it? Analytics Kissmetrics Shows me my actual customers and their behavior Qualitative Research Qualaroo, SurveyMonkey, Usertesting Easy to use/Deep qualitative insights Project Management Trello Manage my time + communicate with collaborators
  • 44. Tool Company Why do I like it? Company Wiki Confluence Document initial thoughts for everyone Testing platform* Optimizely, Pardot, Adwords Easily build tests and get data Analytics Kissmetrics Let’s me confirm and verify down my funnel Company Wiki Confluence Documentation and learnings for everyone *Includes actual testing platform and tools that have testing capabilities
  • 45. Not everyone likes their burger the same way How do you take yours?
  • 46. Trust the process Share your leanings Stack your results A/B TESTING FOR SUCCESS
  • 47. *Image from Optimizely REPEAT THE PROCESS AS OFTEN AS POSSIBLE
  • 48. FEEL LIKE A WINNER AND TAKE A VACATION
  • 49. Get Our Free PDF Guide to A/B Testing
  • 50. Appsumo reveals its A/B testing secret: only 1 out of 8 tests produce results MORE RESOURCES… A Beginner’s Guide To A/B Testing: An Introduction How to Run AB Tests that Get REAL Results Statistical Significance Does Not Equal Validity (or Why You Get Imaginary Lifts) How Big is the Difference Between Being 90% and 99% Certain? My 7 Rules for A/B Testing That Triple Conversion Rates Optimizely: What is A/B Testing How To Determine The Statistical Significance Of An A/B Test – Basic Introduction How to Determine Statistical Significance When A/B Testing With Divi Leads
  • 51. THUE MADSEN Marketing Operations Manager, Kissmetrics @ThueLMadsen tmadsen@kissmetrics.com Questions?