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HOW, WHEN, EXAMPLES & PITTFALLS Lean Conference – November 17 th - Manchester Ton Wesseling – CEO – Testing.Agency A/B-testing

A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

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Keynote of Ton Wesseling, CEO Testing.Agency on A/B-testing. November 17th 2014, Lean Conference Manchester. Is this keynote Ton shares why A/B-testing is user knowledge and how you use testing to outgrow the competition. In the slides are some tool and article tips, some A/B-test examples and some analytics pitfalls - which will be pittfalls with an extra t, if you don't know them :-)

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Page 1: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

H O W , W H E N , E X A M P L E S & P I T T F A L L S

L e a n C o n f e r e n c e – N o v e m b e r 1 7 t h - M a n c h e s t e r To n W e s s e l i n g – C E O – Te s t i n g . A g e n c y

A/B-testing

Page 2: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Manchester

Page 3: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Should I go for City?

Page 4: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Should I go for United?

Page 5: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Manchester

Page 6: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing

A/B-testing != CRO

Page 7: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing

CRO != user knowledge

Page 8: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing

A/B-testing ==

user knowledge

Page 9: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing

HOW & WHEN

Page 10: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing

EXAMPLES

Page 11: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing

PITTFALLS

Page 12: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Ton Wessel ing | @ TonW

ü  More testing ü  Quality Assurance ü  Lower pricing

Page 13: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Onl ine Exper iments – A/B-test ing

Winner!"

Variation B"

Variation A"

Default"

Page 14: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Hyper l ink junky

Page 15: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Digging through log fi les

Page 16: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Trying to improve

Page 17: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Over and over again

Page 18: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

What most start-ups do

Page 19: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

That is:

0 / 1 Testing

Page 20: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Why can this lead to fa i lures?

Page 21: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

0/1 Test ing: weekly change?

26 out of 44 weeks: over 5% change!

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Ton Wesseling | @ TonW #leanconf Manchester 2014

Test ing should be l ike:

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Ton Wesseling | @ TonW #leanconf Manchester 2014

Scient ific approach

A / B Testing Live Online Research

Page 24: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Exper iments

“If you double the number of experiments you do per year

you’re going to double your inventiveness”

Jeff Bezos, CEO Amazon – 2004!

Page 25: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Growth l ike Amazon G

erm

an E

com

mer

ce m

arke

t, th

ank

you

Andr

é M

orys

Page 26: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Exper iments per year

1000+ (but it did not start like that)

Page 27: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Growth curve

Page 28: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Phase 1: test solut ions

Page 29: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Fake adwords test ing

Do they click

on your idea?

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Ton Wesseling | @ TonW #leanconf Manchester 2014

Fake facebook test ing

Do they like your idea?

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Ton Wesseling | @ TonW #leanconf Manchester 2014

Fake landing page test ing

Do they subscribe to your idea?

Page 32: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Make sure i t ’s not

0 / 1 Testing

Page 33: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Once you br idged the gap

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Ton Wesseling | @ TonW #leanconf Manchester 2014

The growth phase!

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Ton Wesseling | @ TonW #leanconf Manchester 2014

Dupl icate?

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Ton Wesseling | @ TonW #leanconf Manchester 2014

I t ’s the web, i t ’s scalable!

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Ton Wesseling | @ TonW #leanconf Manchester 2014

You need to opt imize!

Page 38: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Over and over again

Page 39: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

I t takes many exper iments to win

Page 40: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Maximize your test capacity

Time

Conversion%

Page 41: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Speed up – more people

Page 42: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Growth l ike Amazon G

erm

an E

com

mer

ce m

arke

t, th

ank

you

Andr

é M

orys

Page 43: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Real growth

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Ton Wesseling | @ TonW #leanconf Manchester 2014

I t takes heavy exper iment ing

250+ in a year

Page 45: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Not every exper iment is successful

Page 46: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

I t takes a fu l l stadium a week for 250+

Page 47: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Or roughly

1000+ conversion points

Page 48: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Too slow? Energy wi l l run out!

Page 49: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

And you wi l l never get th is

Page 50: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

You need the real fast paced culture

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Ton Wesseling | @ TonW #leanconf Manchester 2014

How does Bi l l win?

Page 52: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Emotion vs Rat io

Page 53: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Page 54: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Why is your user here?

Page 55: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

How can you

help your user’s brain

to fullfil it’s needs?

Page 56: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

I t ’s not about A/B-test ing

Growth is about learning how to serve brains!

Page 57: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Test ing costs t ime

Use it to LEARN

Page 58: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

FA C T & A C T – 7 s t e p s t o l e a r n

&

Tell Conclude Analyze

Test Create Analyze Find

Page 59: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

N o w : f o c u s o n C TA

Analyze

Test

Create

Page 60: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Create = Data & Psychology

Digital Data Persuasion Psychology

Analyze &

Experiment

Page 61: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Wheel-of-Persuasion.com

Page 62: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Persuasion on forms

+25% sales

Page 63: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Same technique

Significant more submits, but..

Less registrations

Page 64: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A smal l sentence

+18% sales

Page 65: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

But also

+10% applications

Page 66: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Motivat ion

Winner (sales)

Page 67: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Win your own form A/B-test

http://testing.agency/manchester

Page 68: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

And socia l proof?

Many went before you In november 1.675 people applied for a loan at MoneYou.

Winner (sales)

Page 69: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Chunk your USP’s

+14% sales

Page 70: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

With learning: Phase 3 becomes easier

Page 71: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Test ing becomes user knowledge

Conversion)Op,miza,on) Market'Research'

Page 72: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Pitt fa l ls

How NOT to test

Page 73: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing can be

Page 74: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Don’t t rust your A/B-test analyt ics

Page 75: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

I t keeps you away from this fa i lure

Page 76: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Enough traffic & conversions?

Page 77: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Low significance levels

ü Big chance the winner is not a real winner

Page 78: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Low power levels

ü Big chance a real winner is not recognized

Page 79: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Tested percentage is a spread!

Page 80: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Example test-setup

Page 81: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Average power: 40%

Page 82: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

So:

Page 83: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Another error warning:

ü You just go and dig unitil you find something (you will always find something that seems true BUT is not!)

Page 84: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

OK, results are in

Page 85: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Not s ignificant

ü It’s not a winner, stop

ü But, it’s does not mean it’s a loser!

ü Average: 30% of your tests will have winners

Page 86: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

More?

http://ondi.me/contentverve

http://ondi.me/conversionxl

Page 87: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Conclude

ü Do nothing? or

ü Re-test? or

ü Implement? or

ü Scale? and

ü Continue or change test roadmap

Page 88: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Knowledge l ibrary: ABtestguide.com

Page 89: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

I t ’s not about A/B-test ing

Growth is about learning how to serve brains!

Page 90: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

So you wi l l get th is curve

Page 91: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Growth l ike Amazon G

erm

an E

com

mer

ce m

arke

t, th

ank

you

Andr

é M

orys

Page 92: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing

HOW & WHEN

Page 93: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing

EXAMPLES

Page 94: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

A/B-test ing

PITTFALLS

Page 95: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

Ton Wesseling | @ TonW #leanconf Manchester 2014

Sl ides & more

http://testing.agency/manchester

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Ton Wesseling | @ TonW #leanconf Manchester 2014

Be l ike Bi l l , and win!

Page 97: A/B-testing #leanconf Manchester 2014: WHEN - HOW - EXAMPLES - PITFALLS

H O W , W H E N , E X A M P L E S & P I T T F A L L S

L e a n C o n f e r e n c e – N o v e m b e r 1 7 t h - M a n c h e s t e r To n W e s s e l i n g – C E O – Te s t i n g . A g e n c y

ht tp : / /testing.agency/manchester