A/B Testing for Lean Startups


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Primer on A/B testing for your startup.

Presented to Mucker Labs, February 27, 2012

Published in: Business, Technology, Education
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  • The marketing people felt that they needed to modernize their imageTropicana hired Arnell Group, a subsidiary of Omnicom Group, to reimagine the packaging
  • His team spent 6 months and tens of thousands of dollars to develop this new package
  • Customers hated itAd agency CEO defends design in a press conference saying “emotionally it is very difficult for people to grasp this bold new change”Two moths after introduction its pulled from the shelves
  • Eric Ries’ big ideaProgress is not measured by what you make, but what you learn.Goal: spin through this loop as fast as possible
  • Steve blank says get out of the buildingYour opinion doesn’t matter, your customer’s does
  • Just because we use this method does not be that we lack vision or creativity
  • Lets look at a case study
  • Your hypothesis must be measurable
  • Millions of users retainedFacebook likes to say “the code wins”. What this really means is let’s stop arguing about what we think is right and test it with our users.
  • Kiss metrics video anecdote
  • Can you even tell what the difference is?
  • Just about every conversion goal that tracked showed a dramatic improvement. Signups for free trial: +60%Engagement rate (inverse of bounce rate): +20%Visit to signup page: +30%Visit to homepage: +13%Visit to blog main page: +78%
  • Tests are powerful because opinions don’t matter anymore Don’t piss off users: Appsumo pop-up, signup on blog post, ipad app download interstitial on
  • This is testing gone astray~ 2.5% of users each got a shade for 2 weeksDoug Bowman cited this test as epitomizing the reason why he left as head designer at google
  • Don’t get caught in a micro-optimization loopBig gains come from bold changes
  • Nowadays there is no excuse not to A/B testEach of these sites have great resources on things like landing page best practices
  • Web based testing software is ridiculously easy to use now
  • A/B Testing for Lean Startups

    1. 1. A/B Testing for Lean StartupsEverything you ever Secrets from thewanted to know experts revealedabout split testing. Watch Presentation Learn More Pete Mauro @mauronic Mucker Labs, February 27, 2012
    2. 2. In 2009 Tropicana wanted a new juice box
    3. 3. So they redesigned the package New box launched in thousands of stores nationwide
    4. 4. How did it go? • “Ugly, stupid, cheap and generic looking” • Ad agency defends it • Sales plunge 20% • Agency CEO fired • Total cost: $33 Million
    5. 5. 8 Months +$33 Million Dollars = This Package Sucks
    6. 6. Very un-lean, dude
    7. 7. Lean Startups are Data Driven
    8. 8. Lean Startups Listen to their Customers
    9. 9. Lean Startups are Scientific
    10. 10. The Scientific Method Ask Question Do research Hypothesis Analyze Data Conclusion
    11. 11. Believe it or not, some people leave Facebook
    12. 12. Let’s pretend we work at FacebookAsk Question How can we stop more people from deactivating their Facebook account?Do research The reason why people use Facebook is because their friends are on Facebook.Hypothesis If you remind people about their friends who are being left behind, we will lower the deactivation rate.
    13. 13. Facebook’s Actual A/B Test Control Experiment Source: Julie Zhou, Facebook
    14. 14. The guilt trip worked Control Experiment ✔ Reduced Deactivation Rate by 7% Source: Julie Zhou, Facebook
    15. 15. Quiz: Guess the Winner A BSource: http://www.abtests.com/
    16. 16. 5 Quiz: Guess the Winner Points A B ✔ 80% improvement on sign upsSource: http://www.abtests.com/
    17. 17. Quiz: Guess the Winner A BSource: http://www.abtests.com/
    18. 18. 10 Quiz: Guess the Winner Points A BSource: http://www.abtests.com/ ✔ +60% signups
    19. 19. Designing a Test• Anyone at the company should contribute• Ideas can come from user testing• Use best practices• Be creative, try crazy ideas• Use common sense: don’t piss off your users for the sake of metrics
    20. 20. The 41 Shades of Blue Test at Google Link Color
    21. 21. The Local MaximaSource: Joshua Porter
    22. 22. A/B Testing Tools• Kissmetrics• Visual Website Optimizer• Optimizely• Unbounce• Mailchimp (email campaigns)• Google Website Optimizer• And more…
    23. 23. Mailchimp Split Test
    24. 24. Further Reading• Metrics Driven Design (See Joshua Porter on Slideshare)• The New Science of Product Development (See James Birchler on Slideshare)• Quora: “What are the most unexpected things people have learned from A/B tests?”• Abtests.com & whichtestwon.com
    25. 25. Thanks!Follow me I’m on Twitter@mauronic @mauronic