How do Experimentation and A/B Testing help with Growth?
Experiments are a powerful tool to help you achieve growth in your organization, and A/B testing is a key component of any experimentation strategy. But what’s the big deal with experimentation? Why does it matter so much?
Experiments can be used to drive growth by improving key areas of user experience, such as conversion rate, feature optimization, product version effectiveness, and more. A/B tests involve splitting the users into two or more groups—known as buckets—and sending each group to either version of the product (version A or version B, and so on). Conversion rates for these groups are then compared, and whichever group performed better is kept in place till the next experiment.
In order to have a successful growth strategy, you need to be able to identify certain patterns in your business. While there is no standard formula that can guarantee your product’s success, you can use experiments, data mining, and user feedback to figure out what works best for your business.
Whether it’s figuring out what features of your product are most attractive to new users or making decisions on creating a feature, you can always rely on statistics for an unbiased comparison.
Advanced experimentation steps
While you can get by on intuition alone, a data-driven approach is your best bet for long-term growth. Luckily, most teams are no longer limited to one type of data to test against: from customer surveys to analytics to direct interaction with customers, today’s professionals have tons of data at their disposal.
An important part of running experiments is to not only have a plan for measuring impact but also for determining what metrics you are trying to impact in order to start, which means first figuring out your goal. For example, if you want to increase sales by converting more visitors from Google AdWords into customers or drive a certain amount of traffic to your product website through social media efforts, then it is very clear that you need visitors (or leads) as an input in order to meet your business objective.
Because your company relies on client retention (rather than consumer acquisition), many B2B SaaS companies find that they need to run experiments that keep current customers happy. This includes cutting features, modifying designs, running tests on pricing—anything to see if it makes you happier in your long-term relationship with your product. The result of these experiments is always actionable data; whether or not a test made someone happier is always better than just looking at how many people clicked what button last week. And collecting data about customer happiness is one of the best ways to build long-term relationships.
There are many advanced experiments that can be run by a company. These include: 1) Feature Tests, 2) Landing Page Experiments, 3) Pricing Experiments, 4) Trust Signals (e.g., User Ratings), 5) Retention Experiments and 6) Value-Added Tests. It’s important to note that some experiments can cover multiple areas (e.g., value-added tests may increase conversion rate as well as retention). As such, it’s advisable to plan for multi-experiment runs so you don’t limit yourself in either case.
We worked with Shikhin to create our growth and CRM capabilities to improve our growth strategy. He was instrumental for us to plan across the breadth of organic & performance marketing, CRM, and martech & adtech. We were able to simplify the complexity of growth tech with this partnership through growth tech roadmaps, identification of tech partners, and creation of the right teams and capabilities for future growth
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Our people have delivered success as C-level mar-tech and ad-tech executives, product strategists & managers, and growth marketers.
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