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Making Your Hypothesis Work Harder to Inform Future Product Strategy

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Making Your Hypothesis Work Harder to Inform Future Product Strategy

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At Treatwell, each experiment goes beyond improving a single business metric. Experimentation works to evolve their product while enriching customer insights in order to deliver the best digital experience to their users. Join Laura Howard, Lead Product Manager, and Dennis Meisner, Senior Product Analyst, to learn their secret to making their hypothesis work harder and how getting their hypothesis right has improved Treatwell’s funnel progression and order health, as well as helped them make critical decisions on their product experience.

At Treatwell, each experiment goes beyond improving a single business metric. Experimentation works to evolve their product while enriching customer insights in order to deliver the best digital experience to their users. Join Laura Howard, Lead Product Manager, and Dennis Meisner, Senior Product Analyst, to learn their secret to making their hypothesis work harder and how getting their hypothesis right has improved Treatwell’s funnel progression and order health, as well as helped them make critical decisions on their product experience.

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Making Your Hypothesis Work Harder to Inform Future Product Strategy

  1. 1. Laura Howard, Dennis Meisner Making your hypothesis work harder to inform future product strategy
  2. 2. Dennis Meisner Senior Product Analyst Laura Howard Lead Product Manager
  3. 3. Treatwell is Europe’s leading marketplace for booking hair & beauty. >30,000 Salons and Spas 11 Countries across Europe >250,000 Users per day A booking every 1.6 seconds
  4. 4. What you’ll learn Beyond the business metric: Using experimentation to better understand your customers and inform your future product strategy. How Treatwell began to learn about the ideal booking flow through: User centric experimentation Well structured hypotheses In depth results analysis
  5. 5. Why do we experiment? Experimentation is not only about finding a solution for a business problem, it’s about informing a future product strategy - one built on user insights. Classic approach: Choosing experiments to move a business goal Single test series “I want to move conversion” “I want to prove this idea is right” Our approach: Explorative experimentation to inform future decisions Longer running test series “I want to give users the ideal browse experience” “What is the future of the checkout?”
  6. 6. Case study: The basket page experiment How can we improve funnel progression versus what’s the future of the appointment selection?
  7. 7. Experiments at Treatwell go through a three step cycle. Generate testable hypothesis Run disciplined experiments Learn meaningful insights The Experimentation Wheel
  8. 8. In the definition phase we define what we want to learn and what we want to accomplish. Generate testable hypothesis Run disciplined experiments Learn meaningful insights The Experimentation Wheel
  9. 9. Building a hypothesis backlog A clear definition of the goal and the problem areas are imperative to create a rich hypothesis backlog. Learn about user needs between treatment selection and checkout. Problem/ Opportunity Area 1 Basket Page Problem/ Opportunity Area 3 Hypothesis 1 Removing the basket page Hypothesis 3 Remove only Remove + Add continue button Test Cell C Test Cell D Goal Problem/ Opportunity Areas Hypothesis Variants
  10. 10. What makes a good hypothesis? A good hypothesis outlines the change, the target group, the projected outcome and the reason why we think this will work. We predict that [removing the basket page] for [mobile web users] will [bring more users to the checkout page] because [users are fatigued of unnecessary steps in the funnel]. We will know this is true when we see an [increase in salon page-to-checkout conversion]. outcome action target group reasoning measurable outcome
  11. 11. How do we choose the hypothesis to test? Usually we can only test a subset of the hypothesis we came up with and therefore have to make a choice. Possible criteria for selecting the hypothesis to test: Goal Problem/ Opportunity Area 1 Problem/ Opportunity Area 2 Problem/ Opportunity Area 3 Hypothesis 1 Hypothesis 2 Hypothesis 3 Test Cell A Test Cell B Test Cell C Test Cell D Testable: Do we have the means to test this? ROI: Where could our efforts produce the biggest business impact? Is this learning actually worth the effort? Duration: Focus on Fast Feedback to keep momentum and achieve relevant results.
  12. 12. In the execution phase, the hypotheses are crafted into test cells and launched to our users. Generate testable hypothesis Run disciplined experiments Learn meaningful insights The Experimentation Wheel
  13. 13. What do we need to validate a hypothesis? Things to keep in mind before starting implementation of an experiment: Results oriented decisions: If the proposed initiative is a done deal, why go through all the hard work to conduct an experiment? Consider required resources: Can we increase our resources, even a little, to ensure the optimum outcome? Start with low fidelity: Try to break down the required change into pieces and start testing low fidelity, low effort versions of those pieces. Run concurrent experiments: Sequential experiments with the same goal do not operate in the same environment.
  14. 14. Setting up the experiment Our insights and knowledge about the basket page led to two concurrent variants. Goal: Learn about user needs between treatment selection and checkout. Problem/ Opportunity Area: Basket Page Hypothesis: Removal of Basket Page Data & Insights: 15% of users bounce on the basket page. Users don’t like being directly forwarded on the availability page. Users don’t engage with the components on the basket page. Cell A: Removal of Basket Page Cell B: Removal of Basket Page + Continue on Availability Page
  15. 15. Variant 1 Variant 2 Primary Metric: Salon Page-to-Checkout Conversion Rate Secondary Metric: Overall Conversion Rate Control
  16. 16. The Experimentation Wheel In the analysis phase, we take a close look at the test results and decide on the next steps. Generate testable hypothesis Run disciplined experiments Learn meaningful insights
  17. 17. First Glance Test Results Removing the basket page does increase the number of users proceeding to checkout. Variant 1 Variant 2 ● +6.3% Users seeing Checkout Page ● No significant impact on CVR ● No significant impact on Salon-Checkout CVR ● No significant impact on CVR But… is this everything we can learn from this test?
  18. 18. Deep Dive Results Having a closer look revealed more surprising & impactful insights! Better Experience Users in Variant 2 were less likely to jump back and forth between checkout and availability page Psychological reassurance lead to more confident progression More Net Bookings Users in Variant 2 were less likely to cancel and more likely to show up at their salon and get the treatment. Extra consideration removed impulsive bookers
  19. 19. Learnings & Next Steps The learnings from this test give ample inspiration for new experiments and the evolution of the website. Experiment New Testable Ideas Shorter flow is possible but not without risks: We can safely remove the basket page from the product, simplifying the UX and code Positive friction can ensure quality bookings: Some user friendly positive friction will ensure bookings are intentional and considered, leading to less progression but better quality New lever for post booking success: A new, unexpected lever for reduced cancellations and less no shows “What do our users really need after selecting their treatment on the Salon Page? Do we have a bigger opportunity than we thought?”
  20. 20. The learnings of this test become a driver of our future product strategy. Generate testable hypothesis Run disciplined experiments Learn meaningful insights The Experimentation Wheel
  21. 21. Thanks for listening!

Notas do Editor

  • Slides 1 - 6 : LH, 5 mins 7 - 14: Dennis (15 mins)
    15-20: 7 mins max
  • Treatments offered
  • Use this slide to also reference what we mean by ‘success’
  • verbally: This was an experiment 0 to inform our strategy for the pricing redesign on (Mobile) Web
  • Our goal: Increase conversion for (new) users by making the pricing menu more clear. Problem/Opportunity area: basket page. Hypothesis: removing basket page...

  • Notice that it’s actually unintiuitve to add an extra step
  • Concrete example for how this is going to be embedded in our future product strategy (verbally).
  • Concrete example for how this is going to be embedded in our future product strategy (verbally).

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