Article

4min read

RevenueIQ: The New Standard for Proving ROI in Digital Experimentation

Let’s be honest: proving ROI in digital experimentation has often felt like trying to solve a Rubik’s Cube, blindfolded.

For years, teams have been stuck in the same old debate: “This test boosted conversion rate, but AOV dropped!” or “AOV is up, but conversions are down!” Which is better? Who’s right? And most importantly, how do you convince your CFO that your work is actually making money?

The Problem: Conflicting Metrics and Stalled Decisions

Picture a scenario familiar to many: one campaign variation boosts conversion rate but lowers AOV, while another does the opposite. Which is the real winner? Without a unifying metric, teams get stuck in endless debates, unable to confidently declare a result or justify next steps. As a result, a significant share of tests end up in limbo, and existing ROI dashboards suffer from low trust and adoption.

In fact, last year, 8% of A/B test campaigns with a transaction goal ended up in the dreaded “no decision” zone.

The Solution: RevenueIQ

Now, imagine a world where you don’t have to choose between conversion rate and AOV. Where you don’t have to explain why one number went up while the other went down. Where you can walk into any meeting and say, “Here’s a monthly revenue projection of exactly how much revenue this campaign is generating.”

That’s the world RevenueIQ is building.

RevenueIQ is AB Tasty’s new, patented metric—a result of years of R&D and statistical expertise. It takes all the messy, contradictory data and boils it down to one simple, business-focused number: monthly revenue projection. No more “unclear winners.” No more “conversion vs. AOV” dilemmas; just a clear, actionable view of financial impact.

Key Benefits of RevenueIQ:

  • Always a Clear Revenue View: RevenueIQ provides a direct view of revenue per visitor and per month, making it easy to see the financial impact of every campaign.
  • Eliminates “Unclear Winners”: Even in complex scenarios, RevenueIQ provides a definitive view of which variation delivers the most revenue. This means no more inconclusive campaigns and a significant reduction in “undecidable” tests.
  • Delivers faster results: Combining the two key metrics into a single revenue metric gives actionable insights more quickly than analyzing them separately
  • ROI Projections Before Going Live: Teams can now project the revenue impact of a campaign before full rollout, complete with confidence intervals for best- and worst-case scenarios. This transparency helps avoid surprises and supports more strategic decision-making.
  • Strong Differentiation: RevenueIQ is powered by a unique, patented Bayesian engine, ensuring robust, trustworthy results. It’s not just another metric—it’s the business truth.

Revenue IQ is able to give a confidence interval around the revenue prediction, allowing for better business decisions. With a clear best-case and worst-case scenario, business decisions are easier than just having one number without knowing its accuracy.

The best thing? No competitor currently offers an equivalent.

How RevenueIQ Works

RevenueIQ is deeply integrated into the AB Tasty platform. When a campaign runs, users see not just conversion rates or AOV, but a clear revenue uplift per visitor and per month. The system visually identifies the winning variation, quantifies the potential monthly revenue gain, and provides confidence intervals to show the range of possible outcomes.

For example, if a variation is projected to generate an additional €4,000 per month, RevenueIQ will also display the probability of this outcome and the range (e.g., €2,700–€6,000). This approach is both rigorous and transparent, helping teams make decisions with confidence.

The Impact: Confidence, Adoption, and Differentiation

With RevenueIQ, AB Tasty is setting a new standard for ROI proof in digital experimentation. The result is a simple, credible, and actionable narrative for QBRs and renewal discussions—one that restores confidence, drives adoption, and differentiates AB Tasty in a crowded market.

Revenue IQ lowers the risk of making business mistakes by focusing on revenue.

For teams tired of inconclusive debates and complex metrics, RevenueIQ offers a new way forward: clear, credible, and actionable proof of business impact.

FAQs about RevenueIQ

What is RevenueIQ?

RevenueIQ is a proprietary, patented metric developed by AB Tasty that provides a clear, unified view of how much revenue your digital experiments generate—expressed as revenue per visitor, per month.

How trustworthy are RevenueIQ’s numbers?

RevenueIQ is powered by a patented Bayesian engine, ensuring robust, transparent, and reliable calculations. All projections include confidence intervals, so you always see the full picture.

How does RevenueIQ handle complex or ambiguous test results?

RevenueIQ always provides a clear winner based on revenue impact, even in cases where traditional metrics are inconclusive (due to their lack of integration). This means fewer “stuck” campaigns and more decisive action.

How is RevenueIQ different from what competitors offer?

No competitor currently offers a metric like RevenueIQ. While others may provide “all-purpose” statistics for each individual metric, only RevenueIQ gives you a patented, unified view of revenue per visitor, per month—making it a true differentiator.

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Article

8min read

Flying Through Checkout: How Experimentation Shapes Airline Consumer Behavior

The airline checkout is where booking intent becomes revenue. Yet for most airlines, it’s also where the majority of customers drop off. This high abandonment rate isn’t just a cost of doing business; it’s a direct result of a complex booking process failing to meet modern traveler expectations. Fixing this friction is one of the biggest opportunities for growth in the industry.

This drop-off isn’t just a technical problem, it’s a human one. The checkout flow is where a traveler’s excitement meets anxiety, and where price sensitivity clashes with the desire for comfort. For airline and travel professionals, understanding this interplay is the key to conversion.

The answer isn’t to guess what travelers want or to copy a competitor’s design. It’s to listen, learn, and adapt by building a system that lets you ask customers what they prefer, not with a survey, but with their clicks. As we discuss in our Travel Essentials Kit e-book, this is the world of experimentation, where every test becomes part of a continuous cycle of learning and iteration.

Why airline checkout is so complex

Unlike a simple e-commerce purchase, booking a flight is rarely a one-click affair. The complexity is baked right into the business model. You’re not just selling a seat; you’re selling a multi-faceted travel experience, and each component adds another layer to the checkout.

First, there’s the core booking. A simple round-trip flight is one thing, but multi-leg journeys with different carriers, layovers, and time zones create a significant cognitive load for the user. Then come the additional services, such as seats, bags, meals, or insurance, where each choice is a potential exit point. Finally, regulatory requirements can create long, intimidating forms.

The result of this complexity is an abandonment rate that, according to Inai, hits 90%. To put it another way, nine out of every ten potential customers that start booking a flight will leave without paying. That’s significantly higher than the already high average e-commerce site abandonment rate of 70%. And the problem is even worse on mobile.

$260 billion in lost orders across the US and EU are recoverable through better checkout

This is more than a user experience flaw; it’s a massive financial bleed. The Baymard Institute estimates that $260 billion in lost orders across the US and EU are recoverable through better checkout design alone. It’s a multi-billion dollar design challenge waiting for a solution, but the fix doesn’t require a complete and costly overhaul. A commitment to analyzing user data, testing hypotheses, and letting the results guide incremental, high-impact changes will have your customers soaring through your checkout process in no time.

Decoding consumer behavior at checkout

To optimize the checkout flow, you have to get inside the traveler’s mind. Their behavior is driven by powerful psychological factors, and your data shows exactly where the friction is.

39% of shoppers abandon cart

The single biggest culprit is cost ambiguity. The top reason for cart abandonment, cited by 39% of shoppers in research aggregated by the Baymard Institute, is discovering high extra costs at the end of the process. This points directly to the airline industry’s practice of “drip pricing.” The low base fare gets them in the door, but the steady drip of fees erodes trust. It’s not just the final price; it’s the feeling of being misled.

Next is process friction. The same research found a “too long or complicated” checkout will cause 18% of users to leave. Forcing a user to create an account is another major barrier, responsible for another 19% of abandoned carts. This accumulation of friction—multiple pages, endless form fields, and mandatory sign-ups—creates a powerful negative momentum that pushes users to exit.

Finally, there’s the trust deficit. A staggering 19% of users will abandon a purchase simply because they didn’t trust the website with their payment information. This isn’t just about SSL logos. A user who experiences a price increase through drip pricing is psychologically primed to be more skeptical when it’s time to enter their payment details, as the final cost no longer aligns with their initial expectation.

Understanding these behaviors isn’t about exploiting them. It’s about designing a smoother, more transparent, and less stressful experience that guides the traveler confidently toward their destination while also building brand credibility.

Experimentation as a window into the traveler’s mind

So, how do you solve for cost ambiguity or process friction? The answer is to ask your users, not with a survey, but by testing different approaches and measuring the results. Experimentation, through A/B and multivariate testing, is the most effective way to understand what travelers actually do.

The process starts with a data-driven hypothesis. For example, if your analytics show a high drop-off rate on the passenger details page, you could hypothesize that reducing the number of form fields will reduce friction and increase conversions. From there, you can run a simple A/B test: Version A is your current, longer form, and Version B is the new, simplified one. By showing each version to different segments of your audience, you can measure which one leads to more completed bookings. The result is no longer a guess; it’s a data-backed insight that de-risks design changes and allows you to make improvements with a measurable impact.

But this isn’t just about one-size-fits-all fixes. You can take it a step further with personalization and segmentation. A first-time booker might need more guidance and reassurance during checkout, while a frequent flyer would prefer a streamlined experience that pre-fills their preferences and key information. Experimentation allows you to test different, tailored experiences for these segments, ensuring every traveler gets the smoothest possible path to booking.

What airlines can test in checkout

Once you embrace an experimentation mindset, you’ll see test opportunities everywhere. The goal is to challenge assumptions and find what truly moves the needle. Here are a few powerful areas to start:

  • Call-to-action design: Don’t underestimate the power of a button. We worked with Smartbox to test colour variations of their “Add to cart” button, and a simple color change resulted in a 16% increase in clicks.
  • Payment options: The payment step is the final hurdle. Adding digital wallets is one of the most impactful changes you can make. An analysis by Stripe found that businesses enabling Apple Pay saw an average 22% increase in conversion. It’s a powerful antidote to checkout friction, especially on mobile. You could even explore digital boarding passes that integrate directly with mobile wallets. 
  • Form factor and flow: Is a single-page checkout less intimidating than a multi-step progress bar? Test it and see!
  • Trust-building elements: Reinforce security at the moment of payment. Test the placement of security seals and clear language around your cancellation policies. A simple statement like “Free 24-hour cancellation” can provide the reassurance a hesitant traveler needs.
  • Upsell placement: How and when you present add-ons matters. Test bundling services versus offering them a la carte. You might find users are more receptive to upsells like early check-in or seat selection via a follow-up email after the booking is confirmed, reducing friction in the initial checkout.
  • Mobile-first experiences: Your mobile checkout shouldn’t just be a shrunken version of your desktop site. Test mobile-specific designs with larger tap targets, simplified navigation, and form fields that trigger the correct mobile keyboard layout.

From insights to impact: Building a culture of experimentation

The true power of optimization isn’t found in a single winning test. It’s found in building a culture of continuous learning. When your product, marketing, and engineering teams are united by an experimentation mindset, you stop debating opinions and start making decisions based on data. You dare to go further.

Iberojet increase in clicks

Take Iberojet, for example. The online travel agency questioned whether the order of tabs on their homepage was ideal. Working with us, they ran a simple A/B test to change the order based on user browsing history. That small change increased clicks on the “Search” button by 25%, pushing more users down the conversion funnel.

Another powerful example is Ulta Beauty. Working with us, they’ve embedded experimentation into their innovation process, scaling their program from 20 tests per year to over 65. Rather than relying on assumptions, their teams use testing to get quick, data-driven answers. For example, by testing an overlay with product recommendations in the shopping cart, they drove a 9% increase in revenue and a 15% increase in “add to bag” clicks, proving the value of a nimble, “fail-fast” environment.

This is how you find your better. It’s not about finding one perfect, final version of your checkout. It’s about the restless, determined pursuit of a better experience for every traveler, on every device, every single day. The journey starts with a single question: What will you try?