Article

4min read

Doing CRO at Scale? AB Tasty’s Testing Alerts Prevent Revenue Loss

When talking about CRO at scale, a common fear is, what if some experiments go wrong? And we mean seriously wrong. The more experiments you have running, the higher the chance that one could negatively impact the business. It might be a bug in a variant, or it might just be a bad idea – but conversion can drop dramatically, hurting your revenue goals. 

That’s why it makes sense to monitor experiments daily even if the experiment protocol says that one shouldn’t make decisions before the planned end of the experiment. This leads to two questions: 

  • How do you make a good decision using statistical indices that are not meant to be used that way? Checking it daily is known as “P-hacking” or “data peeking” and generates a lot of poor decisions.
  • How do you check tens of experiments daily without diverting the team’s time and efforts?

The solution is to use another statistical framework, adapted to the sequential nature of checking an experiment daily. This is known as sequential testing

How do I go about checking my experiments daily?

Good news, you don’t have to do this tedious job yourself. AB Tasty has developed an automatic alerting system, based on a specialized statistical test procedure, to help you launch experiments at scale with confidence.

Sequential Testing Alerts offer a sensitivity threshold to detect underperforming variations early. It triggers alerts and can pause experiments, helping you cover your losses. It enables you to make data-driven decisions swiftly and optimize user experiences effectively. This alerting system is based on the percentage of conversions and/or traffic lost.

When creating a test, you simply check a box, select the sensitivity level and you’re done for the rest of the experiment’s life. Then, if no alert has been received, you can go ahead and analyze your experiment as usual; but in case of a problem, you’ll be alerted through the notification center. Then you head on over to the report page to assess what happened and make a final decision about the experiment. 

Can I also use this to identify winners faster?

No; this may sound weird but it’s not a good idea, even if some vendors are telling you that you should do it. You may be able to spot a winner faster but the estimation of the effect size will be very poor, preventing you from making wise business decisions.

But what about “dynamic allocation”?

First of all, what is dynamic allocation? As its name suggests, it is an experimentation method where the allocation of traffic is not fixed but depends on the variation’s  performance. While this may be seen as a way to limit the effect of bad variations, we don’t recommend using it for this purpose for several reasons:

  • As you know, the strict testing protocol strongly suggests not to change the allocation during a test, so dynamic allocation is an edge case of A/B testing. We only suggest using it when you have no other choice. Classic use cases are very low traffic, or very short time frames (flash sales, for instance). So if your only concern is avoiding big losses from a bad variation, alerting is a better and safer option that respects the A/B testing protocol.
  • Since dynamic allocation changes the allocation, in order to avoid the risk of missing out on a winner, it always keeps a minimum traffic amount for the supposed losing variation, even if it’s losing by a lot.

Therefore, dynamic allocation isn’t a way to protect revenue but rather to explore options in the context of limited traffic.

Other benefits

Another benefit of the sequential testing alert feature is better usage of your traffic. Experiments with a lot of traffic with no chance to win are also detected by the alerting system. The system will suggest to the user to stop that experiment and make better use of the traffic for other experiments.

The bottom line is: you can’t do CRO at scale without an automated alert system. Receiving such crucial alerts can protect you from experiments that could otherwise cause revenue loss. To learn more about our sequential testing alert and how it works, refer to our documentation.

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