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Online experimentation
● Introductions
● What is online experimentation
● Methodology
● Metrics
● Showcase of wins & losses
● Q&A
● My email - tshurrock@opentable.com
Agenda
Online experimentation
3
Introductions
● First launch in 1998
● San Francisco HQ
● We have both restaurant facing and
customer facing products
● Acquired by The Priceline Group in 2014
● 40,000 restaurants worldwide
● 21 Million diners seated a month
● 850,000 reviews / month from our
customers
About Opentable
INTRODUCTIONS
● Senior Product Manager at Opentable
● Focused on international expansion
● Development background
● Agency side and client side experience
About me
INTRODUCTIONS
CONFIDENTIAL
We want employees who continually challenge
themselves to look at things differently, seek a better
way, and know they have the freedom to do so.
Overview
What is online
experimentation?
CONFIDENTIAL
An experiment is a controlled study used to test a
hypothesis
Experimentation helps us understand the
impact of our ideas
Overview
A hypothesis is a proposed explanation
made on the basis of limited evidence as
a starting point for further investigation.
In controlled study, subjects are assigned
randomly to different treatment groups, if we see
meaningful differences in the outcomes, then we
can conclude that the treatment caused the
difference
CONFIDENTIAL
Overview
Experimentation methodology
1. Science!
2. Hypothesise!
3. Minimum run time
4. Statistical significance
5. Validate your experiment
6. Learnings
DO..
.
1. Stop the test mid 7 day cycle
2. Pause the test early because of a negative result
3. Judge your test too early
4. Leave it running because it’s ‘almost there’
5. Massage the results (aka the Texas sharpshooter
fallacy)
DO
NOT!
Experimentation is not just UI changes
● Meta analysis completed by Qubit Digital on over 6,700 experiments
● Cosmetic changes have far smaller impact on revenue than treatments grounded in
behavioural psychology.
Experimentation methodology
Treatment Avg Uplift Uplift probability
Scarcity 2.9% 84%
Social proof 2.3% 82%
Urgency 1.5% 70%
Experimentation metrics
140-200 A/B tests launched per
month
KEY METRICS
● #hashtags are used to categorise experiments
● Allows for the easy reporting on experiment
type
● #socialproof / #global / #UX are the biggest
winners for us
● #scarcity is one of the lowest
Use of hashtags
KEY METRICS
Monthly tests launched
Showcasing of A/B testing
wins
#hashtags
#conversion
#socialproof
#urgency
#yield
#frequency
#crosssell
#conversion
21
● Machine learning search results
● Positive result
● Ran for 14 days
● 99% confidence
● Using restaurant attributes to create
quality score and rank accordingly
● Search count, average rating, rating
count, reservation count, price, distance
from city centre
#CONVERSION
22
● Free text search
● Positive result
● 98% significant
● 7 days
● Great insight into what customers are
searching for
#CONVERSION
#socialproof
● Social Proof in rows for dine again on the metro homepage
● Positive improvement
● Ran for 14 days
● 92% confidence
#SOCIALPROOF
25
● Showing top dish tags and
top restaurant tags above
the fold on a restaurant
profile page
● Positive improvement
● Information collected while
customers leave reviews of
the restaurant
#SOCIALPROOF
26
● Showing instagram photos on
restaurant profile pages
● Positive improvement
● Internal tool for getting images
● Moderation feature
● Dynamically moderate photos soon!
#SOCIALPROOF
#urgency
#URGENCY
● Changing countdown timer text to
‘Hurry! We can only hold this table
for you for XX:XX’
● Positive improvement
● 95% confidence level
● Other than this, limited wins with
urgency
#frequency
30
● Adding how many points
customer have received when
they made a booking to the past
reservations tab
● Positive improvement
● Ran for 3 weeks (due to low traffic
numbers)
● Increased repeat booking rate
#FREQUENCY
#crosssell
32
● Restaurant profile page when
there is no availability for the
timeslot searched for (including
2.5 hours either side)
● Positive improvement
● Ran for 2 months (to get big
enough sample pool)
● 97% significant
#CROSS-SELL
33
● A lot of our customers land on
restaurant profile pages from
Google.
● Adding ‘Find Nearby Restaurants’
button on the bottom of the profile
page
● Positive improvement
#CROSS-SELL
Losses (#fail)
35
#FAIL
● More timeslots do not mean more
bookings
● Paradox of choice!
● Negative impact
● 99% significant
36
#FAIL
● Showing images higher up the
page does not help the customer
make a decision quicker
● Negative impact
● 99% significant
Further reading
● Influence: The Psychology of Persuasion
- Robert Cialdini
● Pre-Suasion: A Revolutionary Way to
Influence and Persuade - Robert Cialdini
● What works in e-commerce - a meta-
analysis of 6700 online experiments -
http://www.qubit.com
Things to read
Further reference reading list
● You now (hopefully) have a good overview of how
Opentable executes online experimentation
● My email - tshurrock@opentable.com
● Twitter - @shurrock
Recap for the session
A/B TESTING APPROACH AND LEARNINGS
Questions?
LITE 2017 – Online Experimentation [Thom Shurrock]

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LITE 2017 – Online Experimentation [Thom Shurrock]

  • 2. ● Introductions ● What is online experimentation ● Methodology ● Metrics ● Showcase of wins & losses ● Q&A ● My email - tshurrock@opentable.com Agenda Online experimentation
  • 4. ● First launch in 1998 ● San Francisco HQ ● We have both restaurant facing and customer facing products ● Acquired by The Priceline Group in 2014 ● 40,000 restaurants worldwide ● 21 Million diners seated a month ● 850,000 reviews / month from our customers About Opentable INTRODUCTIONS
  • 5. ● Senior Product Manager at Opentable ● Focused on international expansion ● Development background ● Agency side and client side experience About me INTRODUCTIONS
  • 6. CONFIDENTIAL We want employees who continually challenge themselves to look at things differently, seek a better way, and know they have the freedom to do so. Overview
  • 8. CONFIDENTIAL An experiment is a controlled study used to test a hypothesis Experimentation helps us understand the impact of our ideas Overview A hypothesis is a proposed explanation made on the basis of limited evidence as a starting point for further investigation. In controlled study, subjects are assigned randomly to different treatment groups, if we see meaningful differences in the outcomes, then we can conclude that the treatment caused the difference
  • 11. 1. Science! 2. Hypothesise! 3. Minimum run time 4. Statistical significance 5. Validate your experiment 6. Learnings DO.. .
  • 12. 1. Stop the test mid 7 day cycle 2. Pause the test early because of a negative result 3. Judge your test too early 4. Leave it running because it’s ‘almost there’ 5. Massage the results (aka the Texas sharpshooter fallacy) DO NOT!
  • 13. Experimentation is not just UI changes ● Meta analysis completed by Qubit Digital on over 6,700 experiments ● Cosmetic changes have far smaller impact on revenue than treatments grounded in behavioural psychology. Experimentation methodology Treatment Avg Uplift Uplift probability Scarcity 2.9% 84% Social proof 2.3% 82% Urgency 1.5% 70%
  • 15. 140-200 A/B tests launched per month
  • 16. KEY METRICS ● #hashtags are used to categorise experiments ● Allows for the easy reporting on experiment type ● #socialproof / #global / #UX are the biggest winners for us ● #scarcity is one of the lowest Use of hashtags
  • 18. Showcasing of A/B testing wins
  • 21. 21 ● Machine learning search results ● Positive result ● Ran for 14 days ● 99% confidence ● Using restaurant attributes to create quality score and rank accordingly ● Search count, average rating, rating count, reservation count, price, distance from city centre #CONVERSION
  • 22. 22 ● Free text search ● Positive result ● 98% significant ● 7 days ● Great insight into what customers are searching for #CONVERSION
  • 24. ● Social Proof in rows for dine again on the metro homepage ● Positive improvement ● Ran for 14 days ● 92% confidence #SOCIALPROOF
  • 25. 25 ● Showing top dish tags and top restaurant tags above the fold on a restaurant profile page ● Positive improvement ● Information collected while customers leave reviews of the restaurant #SOCIALPROOF
  • 26. 26 ● Showing instagram photos on restaurant profile pages ● Positive improvement ● Internal tool for getting images ● Moderation feature ● Dynamically moderate photos soon! #SOCIALPROOF
  • 28. #URGENCY ● Changing countdown timer text to ‘Hurry! We can only hold this table for you for XX:XX’ ● Positive improvement ● 95% confidence level ● Other than this, limited wins with urgency
  • 30. 30 ● Adding how many points customer have received when they made a booking to the past reservations tab ● Positive improvement ● Ran for 3 weeks (due to low traffic numbers) ● Increased repeat booking rate #FREQUENCY
  • 32. 32 ● Restaurant profile page when there is no availability for the timeslot searched for (including 2.5 hours either side) ● Positive improvement ● Ran for 2 months (to get big enough sample pool) ● 97% significant #CROSS-SELL
  • 33. 33 ● A lot of our customers land on restaurant profile pages from Google. ● Adding ‘Find Nearby Restaurants’ button on the bottom of the profile page ● Positive improvement #CROSS-SELL
  • 35. 35 #FAIL ● More timeslots do not mean more bookings ● Paradox of choice! ● Negative impact ● 99% significant
  • 36. 36 #FAIL ● Showing images higher up the page does not help the customer make a decision quicker ● Negative impact ● 99% significant
  • 38. ● Influence: The Psychology of Persuasion - Robert Cialdini ● Pre-Suasion: A Revolutionary Way to Influence and Persuade - Robert Cialdini ● What works in e-commerce - a meta- analysis of 6700 online experiments - http://www.qubit.com Things to read Further reference reading list
  • 39. ● You now (hopefully) have a good overview of how Opentable executes online experimentation ● My email - tshurrock@opentable.com ● Twitter - @shurrock Recap for the session A/B TESTING APPROACH AND LEARNINGS