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Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

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Page 1: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data
Page 2: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Your%Presenter

Michael%Aagaard

4 Senior%Conversion%Op:mizer%at%Unbounce%

4 Full4:me%CRO%for%the%lat%seven%years%

4 Interna:onal%speaker%

4 Founder%of%ContentVerve.com

Page 3: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Join%the%conversa:on

4%Include%the%hashtag%#thinkppc)in%your%TwiJer%tweets.%4%Or%use%the%webinar%ques:on%box%to%send%us%ques:ons.

Page 4: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

“When can I stop my A/B Test?”

Page 5: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

“Why run an A/B Test?”

Page 6: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

To get a representative picture of how a variant would perform if implemented permanently “in the wild”.

Page 7: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

To get a representative picture of how a variant would perform if implemented permanently “in the wild”.

Page 8: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Do Not Use 95% Significance Level as a Stopping Rule

1

Page 9: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

After 1 day

+151.4% / significance 97%

655 visitors / 18 conversions

Page 10: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

After 2 days

+98.4% / significance 95%

988 visitors / 23 conversions

Page 11: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

After 1 week

+0.2% / significance 50%

3031 visitors / 58 conversions

Page 12: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

After 2 weeks

+18.1% / significance 77%

5277 visitors / 78 conversions

Page 13: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

After 4 weeks

+36.2% / significance 96%

Total sample: 9396 visitors / 122 conversions

Page 14: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

What we have now: 9,396

What we need: 34,304 visitors in total

What we’re missing:24,908 visitors 73% of the required sample size.

http://www.evanmiller.org/ab-testing/sample-size.html

Page 15: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

http://abtestguide.com/calc/

Page 16: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

“Formulas don’t know whether they are being used properly, and they don’t warn you when your results are incorrect.”

- Deborah J. Rumsey, PhD

Page 17: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

“Real accuracy depends on the quality of data as well as on the sample size.”

- Deborah J. Rumsey, PhD

Page 18: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Worth Getting Familiar With:

- Power Level - P-Value - Margin of Error - Confidence Interval - Null hypothesis / alternative hypothesis

Page 19: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Make Sure You Collect Enough Data to Yield Meaningful Insight

2

Page 20: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Full weeks Full business cycles

Page 21: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Weekly Business Cycle

Page 22: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Full weeks Full business cycles

Week One Week Two Week Three Week Four

Page 23: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Test duration: 2-4 weeks (2 or more business cycles)

Sample size: Pre-calculated sample size (users)

400+ conversions (goals)Significance: 95% or higher

Power: 80% P-Value: 0%

What I look for:

Page 24: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Be Careful With Averages - They Hide the Truth

3

Page 25: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Devices

Browsers

Channels

Country

Days of the week

Hours ofthe day

User types

Motivation

Campaigns

Age

Gender

Gender

BrowsersDevices

Browsers

Channels

Countries

Days of the week

Hours ofthe day

User types

Motivation

Campaigns

Age

Days of the month

Gender

Devices

Experiment

Page 26: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data
Page 27: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data
Page 28: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Integrate Test Data with Your Web Analytics Setup

And Get the Full Picture

Page 29: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Device?Channel?

Campaign?User Type?

Page 30: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Formulate a Clear Test Hypothesis

4

Page 31: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Why do we think we need to make a change?

What is it that we want to change?

What impact do we expect to see?

How will we measure this impact?

Page 32: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

1. Because we saw [data/feedback]

2. We expect that [change] will cause [impact]

3. We’ll measure this using [data metric]

Page 33: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Because [exit surveys indicated that saving money is most important to our users.]

We expect that [tweaking our value prop to reflect this] will cause [more people to fill out our lead form.]

We’ll measure this using [form submission rate as our key metric.]

Page 34: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Because [exit surveys indicated that saving money is most important to our users.]

We expect that [tweaking our value prop to reflect this] will cause [more people to fill out our lead form.]

We’ll measure this using [form submission rate as our key metric.]

Page 35: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Because [exit surveys indicated that saving money is most important to our users.]

We expect that [tweaking our value prop to reflect this] will cause [more people to fill out our lead form.]

We’ll measure this using [form submission rate as our key metric.]

Page 36: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Because [exit surveys indicated that saving money is most important to our users.]

We expect that [tweaking our value prop to reflect this] will cause [more people to fill out our lead form.]

We’ll measure this using [form submission rate as our key metric.]

We expect to see reliable results in [four weeks.]

Page 37: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Learn Statistics!!!

5

Page 38: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

http://amzn.to/1RFNBwA

Page 39: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Live%Q&A%Time

Page 40: Practical A/B Testing Statistics: 5 Tips To Help You Get Reliable Data

Have%more%questions?

Contact%Us%Directly

• Webinar%Feedback:%[email protected]

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