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AB/MV Testing
A Guide to Passion Optimization
          By Josh Stanley
Guide Outline:
• Why Testing Matters
• OKR Framework
• Objectives
• Recommendations
Why AB/MVT testing matters?
• AB/MVT is a tool for connecting people to their passion.
  Testing allows us to truly create specialty retail sites that best serve
  the customer.
• There’s big money in small changes. We saw $x million in
  incremental revenue last year from testing, and we only ran xx
  major tests.
• Pain points exist. We know pain points exist for our customers
  and we can identify the right way to address them.
• We don’t know what really works. On average, 20% of
  experiments are winners. So we’re right 1 out 5 times
• Competitive advantage is out there. The opportunity to
  understand our customer better and refine our strategy around
  what they perceive and care about is huge!
Objectives                              KPIs                                    Risks
“Improve what matters”                  •   Incremental revenue gains of $XX
                                            million.
                                                                                •
                                                                                •
                                                                                    Late start
                                                                                    Lack of dedicated resources
Get more people to the products they
                                        •   Bounce rates – , Exit pages –       •   Time for coordination of testing
want, adding more gear to carts, and
                                        •   Add to cart +, AOV +                    with other efforts
checking out more often.
                                        •   Cart Abandonment –, Conversion +


“Iterate on lessons”                    •   Increase the # of concurrent
                                            campaigns by X%
                                                                                •
                                                                                •
                                                                                    Lack of a repository
                                                                                    Time to coordinate test
Seek to understand behavior behind
                                        •   Increase reused campaigns and           retrospectives and promote
test results with variations of the
                                            versioning by X%                        follow-up tests
same test.




“Test early and often”                  •
                                        •
                                            Increase the # of tests run by X%
                                            Reduce time to test by X%
                                                                                •
                                                                                •
                                                                                    Late start
                                                                                    Time to focus on process
Create simple and effective processes
                                        •   Full portfolio testing                  improvement
to test everything, everywhere, and
                                                                                •   Cost effectiveness of scaling our
all the time.
                                                                                    tool



“Institutionalize testing”              •   Increase user handling of testing
                                            by X%
                                                                                •   Time to campaign, educate, and
                                                                                    propagate testing.
Make AB/MVT testing part of the
                                        •   Increase backlog by X%
culture. Bring AB/MVT testing into
the daily workflow of key
stakeholders.
“Improve what matters”
             Current Process                              Where’s the focus and strategy alignment?
Competitive Analysis
Data Mining
Best Practices                                  Idea      What about          What about      Is this in
Risk Mitigating                                           exit pages?        Customer pain    strategic
                                                                                points?      alignment?
                                                            Home
                                                            Page
                       Requirements & KPIs




                                             Hypothesis
                                                               PLP


                                                                PDP
                                             Prediction
                                                                   Cart
                                                                   Page

                                                Test              Checkout
                                                                   Page

 Success or failure?
“Decide and move on”                           Result
“Improve what matters”
              Ideal Process                        Focus on a strategic objective
                                                   Define problem statements
                                                   Get “ideas” focused
                   Strategic                       Work from a backlog
                   Objective
                    (Focus)
                                                   Hypothesis
                                                   Frame for tests at the start for re-testing
Analyze &
                                      Hypothesis   Prediction
 Retest
                                                   Align expectations to the objective(s)

                                                   Test
                                                   Building tests to support variations

                                                   Analyze & Retest
            Test               Prediction
                                                   Analysis with a retrospective
                                                   Retest with new variations, rules, or
                                                   thresholds to refine learning.
“Iterate on lessons”

Single pass AB/MVT testing does not prove a hypothesis.
It only supports the hypothesis.

So, why do we stop learning after we identify a “winner”?
Why do we assume we tested the hypothesis correctly when we see a “loser”?

THE REAL VALUE PROPOSITION OF TESTING IS THE “HIDDEN VALUE”!

Performance Drivers (Quantitative):
• What reduces bounce rates?
                                                         Guaranteed Value
• What drives conversion?
• What increases AOV?



Behavioral Knowledge (Qualitative):
• Do we understand our customer?
                                                            Hidden Value
• How do they make decisions?
• Does reality match perception?
“Iterate on lessons”
    If our goal is to get to the core of our customer’s behavior,
          why isn’t behavioral study apart of what we do?
                                         Competitive                 Testing
                      Best Practices
                                          Analysis
                                                       Data Mining
                                                                     Cycles    Behavior


From the “Consumer
Decisions” class I
taught - based on an
employee survey.

Even Backcountry
employees are
susceptible to
cognitive biases. 
“Test early and often”
Our Test Types
  Optimization
  Changing elements of the site
  to achieve “local maximum”
  Conceptual
  Feature improvements testing
  that’s informative, or supports
  “better design” hypothesis
  Functional
  Site elements that should be
  dynamic with functional
  ownership (i.e. targeting)
“Test early and often”
Process Principals for Velocity:
• Follow agile philosophies where we can: backlog, sprints,
  retrospectives, etc.
• Incorporate the 3rd party into the agile process.
• Test “small” when it makes sense. Get down to the essence of the
  hypothesis to ensure we’re not over-scoping the test.
• Make the process simple and transparent.
“Institutionalize testing”
• Functional Testing                         Online Merchandising
                                            Functional Test Concept
   – Identifying the opportunities to
     create stakeholder owned
     functional tests.
• Educational Campaign
   – Tech Series Speakers
   – Wisdom Wednesdays
• Testing Campaign
   – Workshops, Trainings
   – Infographics, Blogs, etc.
• Engineer the Process                      Allowing stakeholder to
                                          A/B/n test any messaging in
   – Build testing into the dev process        slots at any time!
“Institutionalize testing”
Areas to focus on…
• Test coordination
   – Understanding and resolving conflicts
   – Transparency into testing priorities and progress
   – Communicating campaigns, impacts, and follow-up
• Maintaining the backlog and functional tests
   – Prioritizing the backlog based on strategy and predictive value
   – Maintaining functional tests and resulting value
   – Team BL  Monetate BL  Creative BL  BI BL  SPI BL  Test
• Knowledge management
   – Building the knowledge repository/reference guide
   – Coordinating knowledge share activities (workshops, retrospectives, etc.)
   – Tracking and reporting testing value.
• Continuous Improvement/ Roadmap
Recommendation
We need a dedicated                                        Corp
                                                        Initiatives
                                                                                         Visual
                                                                                         Merch
                                                                                                                Content

                                                                                                         UX
“Testing Manager”.                                                            Mktg                  BI
–   Product/Project-like role
–   Backlog(s) Management
–   Department Coordination
                                                                            Portfolio Testing Backlog
–   Vendor Management                                                     Creative, BI, and SPI Requests
–   Internal Champion
                                   Product Management
                                                             Testing                   Testing             Testing
–   Future Planning                                           Stories                   Stories             Stories
                                                              (CSS,                  (CSS, Javasc        (CSS, Javasc
–   Reporting                                               Javascript)                  ript)               ript)



                                                             Bike                    Outdoor              ASR
                                                            Backlog                  Backlog             Backlog




 Product Manager, A/B/n Testing

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New AB/Multi-variant Testing Guide

  • 1. AB/MV Testing A Guide to Passion Optimization By Josh Stanley
  • 2. Guide Outline: • Why Testing Matters • OKR Framework • Objectives • Recommendations
  • 3. Why AB/MVT testing matters? • AB/MVT is a tool for connecting people to their passion. Testing allows us to truly create specialty retail sites that best serve the customer. • There’s big money in small changes. We saw $x million in incremental revenue last year from testing, and we only ran xx major tests. • Pain points exist. We know pain points exist for our customers and we can identify the right way to address them. • We don’t know what really works. On average, 20% of experiments are winners. So we’re right 1 out 5 times • Competitive advantage is out there. The opportunity to understand our customer better and refine our strategy around what they perceive and care about is huge!
  • 4. Objectives KPIs Risks “Improve what matters” • Incremental revenue gains of $XX million. • • Late start Lack of dedicated resources Get more people to the products they • Bounce rates – , Exit pages – • Time for coordination of testing want, adding more gear to carts, and • Add to cart +, AOV + with other efforts checking out more often. • Cart Abandonment –, Conversion + “Iterate on lessons” • Increase the # of concurrent campaigns by X% • • Lack of a repository Time to coordinate test Seek to understand behavior behind • Increase reused campaigns and retrospectives and promote test results with variations of the versioning by X% follow-up tests same test. “Test early and often” • • Increase the # of tests run by X% Reduce time to test by X% • • Late start Time to focus on process Create simple and effective processes • Full portfolio testing improvement to test everything, everywhere, and • Cost effectiveness of scaling our all the time. tool “Institutionalize testing” • Increase user handling of testing by X% • Time to campaign, educate, and propagate testing. Make AB/MVT testing part of the • Increase backlog by X% culture. Bring AB/MVT testing into the daily workflow of key stakeholders.
  • 5. “Improve what matters” Current Process Where’s the focus and strategy alignment? Competitive Analysis Data Mining Best Practices Idea What about What about Is this in Risk Mitigating exit pages? Customer pain strategic points? alignment? Home Page Requirements & KPIs Hypothesis PLP PDP Prediction Cart Page Test Checkout Page Success or failure? “Decide and move on” Result
  • 6. “Improve what matters” Ideal Process Focus on a strategic objective Define problem statements Get “ideas” focused Strategic Work from a backlog Objective (Focus) Hypothesis Frame for tests at the start for re-testing Analyze & Hypothesis Prediction Retest Align expectations to the objective(s) Test Building tests to support variations Analyze & Retest Test Prediction Analysis with a retrospective Retest with new variations, rules, or thresholds to refine learning.
  • 7. “Iterate on lessons” Single pass AB/MVT testing does not prove a hypothesis. It only supports the hypothesis. So, why do we stop learning after we identify a “winner”? Why do we assume we tested the hypothesis correctly when we see a “loser”? THE REAL VALUE PROPOSITION OF TESTING IS THE “HIDDEN VALUE”! Performance Drivers (Quantitative): • What reduces bounce rates? Guaranteed Value • What drives conversion? • What increases AOV? Behavioral Knowledge (Qualitative): • Do we understand our customer? Hidden Value • How do they make decisions? • Does reality match perception?
  • 8. “Iterate on lessons” If our goal is to get to the core of our customer’s behavior, why isn’t behavioral study apart of what we do? Competitive Testing Best Practices Analysis Data Mining Cycles Behavior From the “Consumer Decisions” class I taught - based on an employee survey. Even Backcountry employees are susceptible to cognitive biases. 
  • 9. “Test early and often” Our Test Types Optimization Changing elements of the site to achieve “local maximum” Conceptual Feature improvements testing that’s informative, or supports “better design” hypothesis Functional Site elements that should be dynamic with functional ownership (i.e. targeting)
  • 10. “Test early and often” Process Principals for Velocity: • Follow agile philosophies where we can: backlog, sprints, retrospectives, etc. • Incorporate the 3rd party into the agile process. • Test “small” when it makes sense. Get down to the essence of the hypothesis to ensure we’re not over-scoping the test. • Make the process simple and transparent.
  • 11. “Institutionalize testing” • Functional Testing Online Merchandising Functional Test Concept – Identifying the opportunities to create stakeholder owned functional tests. • Educational Campaign – Tech Series Speakers – Wisdom Wednesdays • Testing Campaign – Workshops, Trainings – Infographics, Blogs, etc. • Engineer the Process Allowing stakeholder to A/B/n test any messaging in – Build testing into the dev process slots at any time!
  • 12. “Institutionalize testing” Areas to focus on… • Test coordination – Understanding and resolving conflicts – Transparency into testing priorities and progress – Communicating campaigns, impacts, and follow-up • Maintaining the backlog and functional tests – Prioritizing the backlog based on strategy and predictive value – Maintaining functional tests and resulting value – Team BL  Monetate BL  Creative BL  BI BL  SPI BL  Test • Knowledge management – Building the knowledge repository/reference guide – Coordinating knowledge share activities (workshops, retrospectives, etc.) – Tracking and reporting testing value. • Continuous Improvement/ Roadmap
  • 13. Recommendation We need a dedicated Corp Initiatives Visual Merch Content UX “Testing Manager”. Mktg BI – Product/Project-like role – Backlog(s) Management – Department Coordination Portfolio Testing Backlog – Vendor Management Creative, BI, and SPI Requests – Internal Champion Product Management Testing Testing Testing – Future Planning Stories Stories Stories (CSS, (CSS, Javasc (CSS, Javasc – Reporting Javascript) ript) ript) Bike Outdoor ASR Backlog Backlog Backlog Product Manager, A/B/n Testing

Editor's Notes

  1. $8 million in incremental revenue suggests we have a lot of room for improvement on optimization before we run into the law of diminishing returns.