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What is A/B Testing? …and Split Testing?

Why is Amazon so successful? A big part of the answer is A/B Testing. Unknown to most users, Amazon’s customers are subject to thousands of A/B test experiments every week. They tell Amazon how to lay out a page, which products to offer you, and even the font size on the buy buttons.

A/B testing is ubiquitous on the internet and it powers millions of marketing decisions a day. And the idea is shockingly simple. What has changed is the technology that allows marketers to carry out their A/B tests on statistically significant samples quickly and easily.

So, what is A/B testing, and what can it do for you?

Watching this video is worth 3 Management Courses CPD Points*.
🔎 See below for details

Marketing for Managers
This video is part of course module number 8.3.4
Program 8: Managing Customers & Clients
Course 3: Marketing for Managers
Section 4: Online Marketing

Other videos in this section include:
🎬 What is Permission Marketing? And How to Build Your Campaign https://youtu.be/BqonS5HHLrQ
🎬 What is Marketing Automation? And How to set it up. https://youtu.be/-TpV1tabW0I
🎬 What is Remarketing? (or Retargeting) https://youtu.be/Rng5dfpsQEI

You create two versions of your webpage and use a simple software tool to serve one of the two versions randomly to everyone who selects that page. The software then tracks how many people click the button on each page.
A/B testing has three common conventions:
1 One version is always the current version. This is the ‘control’.
2 Test one thing at a time.
3 A test is only conclusive if the change in behaviors for the B state is ‘statistically significant’.

Crudely, a statistically significant change is 1/√n where n is the sample size. So, if you have:
• 100 visitors to your web page in a month, you need more than 10% difference to be confident that it’s due to the change you made.
• 10,000 visitors to your web page in a month, you only need more than 1% difference to be confident that it’s due to the change you made.

What Next?
There are 3 scenarios that can flow from your first round of A/B testing:
1 No significant variation in behavior.
Define a new A/B test. Try a bigger change.
2 The variation is adverse and you see less of the behavior you want.
Stop the test, keep your control, and try a new test.
3 You get a significant improvement in the numbers.
Stop the test, keep the new version as your next control, and try a new test.

Multiple A/B Testing
You can test more than one thing at a time.
But, if you make multiple changes to create your B state, this is usually referred to as Split Testing.

If your software allows, you can test multiple changes in one go, by having an A state as control, and then B, C, D… states with different variations. In our example, each could have three different button designs.
Big organizations are constantly A/B testing and Split testing their marketing to improve conversion rates.

You Can Split Test almost Anything
It depends largely on:
1 The software tools you have at your disposal
2 The imagination of your team

Common examples of A/B testing include:
• Headlines
• Key messages
• Sales and marketing copy
• Design elements
• Audience targeting
• Automation sequences
• The promotions you offer
• Pricing

1. Pick a random sales page on the web. Find 10 things the owner could A/B test (2 MC CPD Points)
2. Find another 10 (2 MC CPD Points)

Free Resources
🧰 CPD Tools – https://gum.co/MC-CPD
Paid resources
🧳 Management Courses Onboarding Kit – https://gum.co/MC-ObK ($3)

📖 Very quick overview
Marketing: A Very Short Introduction https://geni.us/ozSJF
📖 Good general overviews
Kotler on Marketing https://geni.us/JNeVHy
Positioning: The Battle for Your Mind https://geni.us/kGj4KCA
The 22 Immutable Laws of Marketing https://geni.us/RVU1
Marketing For Dummies https://geni.us/sZXAw
📖 Small business marketing
The 1-Page Marketing Plan https://geni.us/Xb4wBk
📖 For a textbook, you can’t go wrong with Kotler’s name on it!
Marketing: An Introduction https://geni.us/q4gzVOw
Principles of Marketing https://geni.us/gsFeMT5
Marketing Management https://geni.us/i3FO

⭕️ Links to our book recommendations are affiliated through Amazon

Managers Need a Basic set of kit to do your job well. Here are my top recommendations: https://kit.co/MikeClayton/manager-s-work-kit (the links are affiliated)

You can record your Management Courses CPD points on our free, downloadable CPD record log.
📓 Download it at: https://gum.co/MC-CPD
Each video has two levels of MC CPD points. For this video:
– If you simply watched the video, record 3 MC CPD points
– If you also carried out all of the recommended exercises, score a total of 7 MC CPD points

#Marketing #ManagementCourses #A/BTesting


What is BIG DATA? And introducing the 3 (or 5) V’s
Account Management: What is Account-based Selling?
What is Corporate Social Responsibility (CSR)?
The Disney Creativity Strategy: The NLP Way to Test Ideas
Cognitive Reappraisal: How to Control Negative Thoughts
Don Draper: In Mad Men, Advertising is Cool
Vance Packard – The Hidden Persuaders
David Ogilvy: The Father of Advertising
Seth Godin: Powerhouse of Marketing Ideas
Jean-Claude Larréché and Marketing Momentum
Theodore Levitt: Globalization of Marketing
Philip Kotler: The Father of Modern Marketing
Estée Lauder: The Mother of Modern Marketing
Advertising Campaign Monitoring & Evaluation
Media Buying: The Three Stages
All of the Advertising Media I Can Think of
Top 20 Strategies for Persuasive Ad Copy: Advertising Copy Strategies
The Creative Process: Developing, Writing, and Producing an Advert
Advertising Agencies: What They Offer and How to Select and Brief an Ad Agency
Planning an Advertising Campaign: Campaign Objective and Budget
What is Advertising? And What are its Benefits?
What is SEO? Search Engine Optimization
What is a USP? A Unique Selling Proposition
What is Remarketing? (or Retargeting)
What is Marketing Automation? And How to set it up.
What is Seth Godin’s Permission Marketing? And How to Build Your Campaign
What is Customer Relationship Management (CRM)? …And How to Use it.
What is the Customer Journey? And How to Visualize it
Seth Godin: What are Tribes?
Guy Kawasaki: What is Enchantment?
What is Diamond Feeback?
What is Public Relations (PR)?
What is the Marketing Channel Mix? Promotion Channel Strategy
Marketing Mix: The Fifth P – What is Positioning?
Marketing Mix: Crafting a Message – What is Promotion?
Marketing Mix: Place and Distribution Channels
Marketing Mix: Price and Pricing Strategy
Marketing Mix: Product – What is the Product Marketing?
What is the Marketing Mix – The 4Ps: Product, Price, Place, Promotion?
What is Multi-Level Marketing (MLM)?
What is a Customer Persona? …or Buyer Persona or Marketing Persona
What is Market Segmentation?
What is a Marketing Strategy?
What is Market Research?
What is a Brand Marketing Plan?

Mike Clayton

About Mike Clayton 

Dr Mike Clayton is a (former) Project Manager and now a management educator. Having trained thousands of people at live workshops, seminars, and conferences, he now delivers training mainly via video. He has 14 books with international publishers and runs two successful YouTube channels. He is also the founder of OnlinePMCourses.com

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