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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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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
Ton Wesseling | @ TonW #leanconf Manchester 2014
Manchester
Ton Wesseling | @ TonW #leanconf Manchester 2014
Should I go for City?
Ton Wesseling | @ TonW #leanconf Manchester 2014
Should I go for United?
Ton Wesseling | @ TonW #leanconf Manchester 2014
Manchester
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing
A/B-testing != CRO
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing
CRO != user knowledge
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing
A/B-testing ==
user knowledge
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing
HOW & WHEN
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing
EXAMPLES
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing
PITTFALLS
Ton Wesseling | @ TonW #leanconf Manchester 2014
Ton Wessel ing | @ TonW
ü More testing ü Quality Assurance ü Lower pricing
Ton Wesseling | @ TonW #leanconf Manchester 2014
Onl ine Exper iments – A/B-test ing
Winner!"
Variation B"
Variation A"
Default"
Ton Wesseling | @ TonW #leanconf Manchester 2014
Hyper l ink junky
Ton Wesseling | @ TonW #leanconf Manchester 2014
Digging through log fi les
Ton Wesseling | @ TonW #leanconf Manchester 2014
Trying to improve
Ton Wesseling | @ TonW #leanconf Manchester 2014
Over and over again
Ton Wesseling | @ TonW #leanconf Manchester 2014
What most start-ups do
Ton Wesseling | @ TonW #leanconf Manchester 2014
That is:
0 / 1 Testing
Ton Wesseling | @ TonW #leanconf Manchester 2014
Why can this lead to fa i lures?
Ton Wesseling | @ TonW #leanconf Manchester 2014
0/1 Test ing: weekly change?
26 out of 44 weeks: over 5% change!
Ton Wesseling | @ TonW #leanconf Manchester 2014
Test ing should be l ike:
Ton Wesseling | @ TonW #leanconf Manchester 2014
Scient ific approach
A / B Testing Live Online Research
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!
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
Ton Wesseling | @ TonW #leanconf Manchester 2014
Exper iments per year
1000+ (but it did not start like that)
Ton Wesseling | @ TonW #leanconf Manchester 2014
Growth curve
Ton Wesseling | @ TonW #leanconf Manchester 2014
Phase 1: test solut ions
Ton Wesseling | @ TonW #leanconf Manchester 2014
Fake adwords test ing
Do they click
on your idea?
Ton Wesseling | @ TonW #leanconf Manchester 2014
Fake facebook test ing
Do they like your idea?
Ton Wesseling | @ TonW #leanconf Manchester 2014
Fake landing page test ing
Do they subscribe to your idea?
Ton Wesseling | @ TonW #leanconf Manchester 2014
Make sure i t ’s not
0 / 1 Testing
Ton Wesseling | @ TonW #leanconf Manchester 2014
Once you br idged the gap
Ton Wesseling | @ TonW #leanconf Manchester 2014
The growth phase!
Ton Wesseling | @ TonW #leanconf Manchester 2014
Dupl icate?
Ton Wesseling | @ TonW #leanconf Manchester 2014
I t ’s the web, i t ’s scalable!
Ton Wesseling | @ TonW #leanconf Manchester 2014
You need to opt imize!
Ton Wesseling | @ TonW #leanconf Manchester 2014
Over and over again
Ton Wesseling | @ TonW #leanconf Manchester 2014
I t takes many exper iments to win
Ton Wesseling | @ TonW #leanconf Manchester 2014
Maximize your test capacity
Time
Conversion%
Ton Wesseling | @ TonW #leanconf Manchester 2014
Speed up – more people
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
Ton Wesseling | @ TonW #leanconf Manchester 2014
Real growth
Ton Wesseling | @ TonW #leanconf Manchester 2014
I t takes heavy exper iment ing
250+ in a year
Ton Wesseling | @ TonW #leanconf Manchester 2014
Not every exper iment is successful
Ton Wesseling | @ TonW #leanconf Manchester 2014
I t takes a fu l l stadium a week for 250+
Ton Wesseling | @ TonW #leanconf Manchester 2014
Or roughly
1000+ conversion points
Ton Wesseling | @ TonW #leanconf Manchester 2014
Too slow? Energy wi l l run out!
Ton Wesseling | @ TonW #leanconf Manchester 2014
And you wi l l never get th is
Ton Wesseling | @ TonW #leanconf Manchester 2014
You need the real fast paced culture
Ton Wesseling | @ TonW #leanconf Manchester 2014
How does Bi l l win?
Ton Wesseling | @ TonW #leanconf Manchester 2014
Emotion vs Rat io
Ton Wesseling | @ TonW #leanconf Manchester 2014
Ton Wesseling | @ TonW #leanconf Manchester 2014
Why is your user here?
Ton Wesseling | @ TonW #leanconf Manchester 2014
How can you
help your user’s brain
to fullfil it’s needs?
Ton Wesseling | @ TonW #leanconf Manchester 2014
I t ’s not about A/B-test ing
Growth is about learning how to serve brains!
Ton Wesseling | @ TonW #leanconf Manchester 2014
Test ing costs t ime
Use it to LEARN
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
Ton Wesseling | @ TonW #leanconf Manchester 2014
N o w : f o c u s o n C TA
Analyze
Test
Create
Ton Wesseling | @ TonW #leanconf Manchester 2014
Create = Data & Psychology
Digital Data Persuasion Psychology
Analyze &
Experiment
Ton Wesseling | @ TonW #leanconf Manchester 2014
Wheel-of-Persuasion.com
Ton Wesseling | @ TonW #leanconf Manchester 2014
Persuasion on forms
+25% sales
Ton Wesseling | @ TonW #leanconf Manchester 2014
Same technique
Significant more submits, but..
Less registrations
Ton Wesseling | @ TonW #leanconf Manchester 2014
A smal l sentence
+18% sales
Ton Wesseling | @ TonW #leanconf Manchester 2014
But also
+10% applications
Ton Wesseling | @ TonW #leanconf Manchester 2014
Motivat ion
Winner (sales)
Ton Wesseling | @ TonW #leanconf Manchester 2014
Win your own form A/B-test
http://testing.agency/manchester
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)
Ton Wesseling | @ TonW #leanconf Manchester 2014
Chunk your USP’s
+14% sales
Ton Wesseling | @ TonW #leanconf Manchester 2014
With learning: Phase 3 becomes easier
Ton Wesseling | @ TonW #leanconf Manchester 2014
Test ing becomes user knowledge
Conversion)Op,miza,on) Market'Research'
Ton Wesseling | @ TonW #leanconf Manchester 2014
Pitt fa l ls
How NOT to test
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing can be
Ton Wesseling | @ TonW #leanconf Manchester 2014
Don’t t rust your A/B-test analyt ics
Ton Wesseling | @ TonW #leanconf Manchester 2014
I t keeps you away from this fa i lure
Ton Wesseling | @ TonW #leanconf Manchester 2014
Enough traffic & conversions?
Ton Wesseling | @ TonW #leanconf Manchester 2014
Low significance levels
ü Big chance the winner is not a real winner
Ton Wesseling | @ TonW #leanconf Manchester 2014
Low power levels
ü Big chance a real winner is not recognized
Ton Wesseling | @ TonW #leanconf Manchester 2014
Tested percentage is a spread!
Ton Wesseling | @ TonW #leanconf Manchester 2014
Example test-setup
Ton Wesseling | @ TonW #leanconf Manchester 2014
Average power: 40%
Ton Wesseling | @ TonW #leanconf Manchester 2014
So:
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!)
Ton Wesseling | @ TonW #leanconf Manchester 2014
OK, results are in
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
Ton Wesseling | @ TonW #leanconf Manchester 2014
More?
http://ondi.me/contentverve
http://ondi.me/conversionxl
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
Ton Wesseling | @ TonW #leanconf Manchester 2014
Knowledge l ibrary: ABtestguide.com
Ton Wesseling | @ TonW #leanconf Manchester 2014
I t ’s not about A/B-test ing
Growth is about learning how to serve brains!
Ton Wesseling | @ TonW #leanconf Manchester 2014
So you wi l l get th is curve
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
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing
HOW & WHEN
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing
EXAMPLES
Ton Wesseling | @ TonW #leanconf Manchester 2014
A/B-test ing
PITTFALLS
Ton Wesseling | @ TonW #leanconf Manchester 2014
Sl ides & more
http://testing.agency/manchester
Ton Wesseling | @ TonW #leanconf Manchester 2014
Be l ike Bi l l , and win!
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