Article

6min read

Using Failed A/B Test Results to Drive Innovation

“Failure” can feel like a dirty word in the world of experimentation. Your team spends time thinking through a hypothesis, crafting a test, and finally when it rolls out … it falls flat. While it can feel daunting to see negative results from your a/b tests, you have gained valuable insights that can help you make data-driven, strategic decisions for your next experiment. Your “failure” becomes a learning opportunity.

Embracing the risk of negative results is a necessary part of building a culture of experimentation. On the first episode of the 1,000 Experiments Club podcast, Ronny Kohavi (formerly of Airbnb, Microsoft, and Amazon) shared that experimentation is a time where you will “fail fast and pivot fast.” As he learned while leading experimentation teams for the largest tech companies, your idea might fail. But it is your next idea that could be the solution you were seeking.

“There’s a lot to learn from these experiments: Did it work very well for the segment you were going after, but it affected another one? Learning what happened and why will lead to developing future strategies and being successful,” shares Ronny.

In order to build a culture of experimentation, you need to embrace the failures that come with it. By viewing negative results as learning opportunities, you build trust within your team and encourage them to seek creative solutions rather than playing it safe. Here are just a few benefits to embracing “failures” in experimentation:

  1. Encourage curiosity: With AB Tasty, you can test your ideas quickly and easily. You can bypass lengthy implementations and complex coding. Every idea can be explored immediately and if it fails, you can get the next idea up and running without losing speed, saving you precious time and money.
  2. Eliminate your risks without a blind rollout: Testing out changes on a few pages or with a small audience size can help you gather insights in a more controlled environment before planning larger-scale rollouts.
  3. Strengthen hypotheses: It’s easy to fall prey to confirmation bias when you are afraid of failure. Testing out a hypothesis with a/b testing and receiving negative results confirms that your control is still your strongest performer, and you’ll have data to support the fact that you are moving in the right direction.
  4. Validate existing positive results: Experimentation helps determine what small changes can drive a big impact with your audience. Comparing negative a/b test results against positive results for similar experiments can help to determine if the positive metrics stand the test of time, or if an isolated event caused skewed results.

In a controlled, time-limited environment, your experiment can help you learn very quickly if the changes you have made are going to support your hypothesis. Whether your experiment produces positive or negative results, you will gain valuable insights about your audience. As long as you are leveraging those new insights to build new hypotheses, your negative results will never be a “failure.” Instead, the biggest risk would be allowing a status quo continuing to go unchecked.

“Your ability to iterate quickly is a differentiation,” shares Ronny. “If you’re able to run more experiments and a certain percentage are pass/fail, this ability to try ideas is key.”

Below are some examples of real-world a/b tests and the crucial learnings that came from each experiment:

Lesson learned: Removing “Add to Basket” CTAs decreased conversion

In this experiment, our beauty/cosmetics client tested removing the “Add to Basket” CTA from their product pages. The idea behind this was to test if users would be more interested in clicking through to the individual pages, leading to a higher conversion rate. The results? While there was a 0.4% increase in visitors clicking “Add to Basket,” conversions were down by 2%. The team took this as proof that the original version of the website was working properly, and they were able to reinvest their time and effort into other projects.

Beauty client add to basket use case

Lesson learned: Busy form fields led to decreased leads

A banking client wanted to test if adjusting their standard request form would drive passage to step 2 and ultimately increase the number of leads from form submissions. The test focused on the mandatory business identification number field, adding a pop-up explaining what the field meant in the hopes of reducing form abandonment. The results? They saw a 22% decrease in leads as well as a 16% decrease in the number of visitors continuing to step 2 of the form. The team’s takeaways from this experiment were that in trying to be helpful and explain this field, their visitors were overwhelmed with information. The original version was the winner of this experiment, and the team saved themselves a huge potential loss from hardcoding the new form field.

Banking client form use case

Lesson learned: Product availability couldn’t drive transactions

The team at this beauty company designed an experiment to test whether displaying a message about product availability on the basket page would lead to an increase in conversions by appealing to the customer’s sense of FOMO. Instead, the results proved inconclusive. The conversion rate increased by 1%, but access to checkout and the average order value decreased by 2% and 0.7% respectively. The team determined that without the desired increase in their key metrics, it was not worth investing the time and resources needed to implement the change on the website. Instead, they leveraged their experiment data to help drive their website optimization roadmap and identify other areas of improvement.

Beauty client availability use case

Despite negative results, the teams in all three experiments leveraged these valuable insights to quickly readjust their strategy and identify other places for improvement on their website. By reframing the negative results of failed a/b tests into learning opportunities, the customer experience became their driver for innovation instead of untested ideas from an echo chamber.

Jeff Copetas, VP of E-Commerce & Digital at Avid, stresses the importance of figuring out who you are listening to when building out an experimentation roadmap.  “[At Avid] we had to move from a mindset of ‘I think …’ to ‘let’s test and learn,’ by taking the albatross of opinions out of our decision-making process,” Jeff recalls. “You can make a pretty website, but if it doesn’t perform well and you’re not learning what drives conversion, then all you have is a pretty website that doesn’t perform.”

Through testing you are collecting data on how customers are experiencing your website,  which will always prove to be more valuable than never testing the status quo. Are you seeking inspiration for your next experiment? We’ve gathered insights from 50 trusted brands around the world to understand the tests they’ve tried, the lessons they’ve learned, and the successes they’ve had.

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Article

9min read

What Is Customer Experience Optimization? (EXO)

Once upon a time, driving digital customer experience optimization (EXO) meant having a competitive edge. You went the extra mile, you won. Nowadays, everyone is focused on EXO to the point where it’s the minimum necessary to stay in the game.

“Experience” encompasses the entire user journey across all touchpoints that a consumer encounters when interacting with your brand. Be it website, app, tablet, mobile, bot-generated or in-store, the quality of these interactions will impact your customers’ purchasing decisions and their loyalty.

Customer experience impacts buyers' purchasing decisions and loyalty
Customer experience optimization can greatly influence buyers’ purchasing decisions and loyalty (Source)

 

Deliver solid experiences and it will shape your brand reputation and increase your conversion rates – the key is to never stop moving. Remain stagnant, and you’ll be overtaken; but if you can figure out what your customers want, find the line between what they’re looking for and what you can offer, and then evolve your interactions on an ongoing basis, you can deliver superior experiences and business success.

Here at AB Tasty we believe that optimization is the bare minimum you should be delivering. In order to stay competitive and stay ahead, the work should never stop. Establishing a continuous feedback loop through experimentation and data gathering and analysis are what it takes to maximize customer experience and keep your competitive edge.

In this article, we’ll cover:

[toc]

 

Why is customer experience optimization so relevant?

At the base, no matter what the product or sales channel, any business will try to satisfy their customers. Customer centricity has been around longer than we might think, but customer experience optimization really started to take flight as technology advanced and brand touchpoints and interactions diversified.

Throw in the fact that data is more readily available, collectible and collected, and suddenly the means to understand your customers better than they understand themselves is out there for the taking.

Use the data you collect to tajke your customer experience to the next level
Use the data you collect to take your customer experience to the next level (Source)

 

Not convinced that it really matters? Think again. PwC’s Future of CX report found that one in three consumers will walk away from a brand after just one negative experience. Furthermore, 73% of consumers nominate their experience in brand interactions as an important factor in making purchasing decisions.

 

Is customer experience optimization truly essential?

Think about your own experiences when shopping online. How does it feel? Which brands do you gravitate towards and which ones just don’t seem to tickle your fancy? Do they see you as an individual, a real person, or are you just another transaction to them? It only takes a moment’s pause to consider your own experiences to understand why optimizing customer experiences is not just important, but essential.

As consumers, we make decisions about where to shop, which products to buy and which ones to keep buying based on our past experience of acquiring and consuming them. What’s more: the aforementioned Future of CX report from PwC found that customers are more likely to try additional products and services from a brand they trust, and that they’re even willing to pay more, too – up to 16% more depending on the product category. It’s also less expensive to encourage repeat business (customer loyalty) than to acquire new customers, so leveraging customer experience optimization to drive long-term brand affinity and customer lifetime value will pay for itself.

 

The three key ingredients to supercharge your customer experience optimization

1. Optimize your user experience

Know your customer journey and dial it up!

When a customer arrives on your site – whether they’re searching for products, comparing different options or just looking to learn more about your products – there are a number of steps they’ll go through to achieve their end goal. All of these add up to a path that they’ve taken through your website, and one that presents both opportunities and pitfalls when it comes to optimizing your site and meeting your customers’ needs. The more you can understand your user journey and implement improvements while removing frictions along the purchase funnel, the better your site will perform.

Gathering data about your customers’ behavior and preferences will give you the information you need to run experiments to discern the optimal setup using A/B testing. Not sure if your CTAs have the best wording? Test them! Trying to understand the best configuration for your landing page? Run an experiment! Have doubts about whether product images should be cropped or full body? We can examine that too!

Ultimately, you’re aiming to ensure that all roads lead to an increase in conversions – and driving UX optimization on an ever-changing customer pathway is necessary to keep you ahead of the game.

Continuously optimizing your user experience is essential for staying ahead of the curve
Continuously optimizing your user experience is essential for staying ahead of the curve (Source)

2. Improve your personalization efforts

Know your customers and tailor to their needs!

Tailoring a digital brand interaction to the unique needs of the person behind the screen builds customer loyalty and drives repeat business. In the experience economy, you’re selling your product plus the interaction with the brand and the purchase itself alongside it. The user experience when acquiring and consuming the product is just as important as the utility it performs. Accordingly, personalizing these digital exchanges with your consumers is key to long-term customer retention.

To better understand your customers on a personal level, building a solid data foundation allows you to best understand your users, identify their needs and deliver personalized experiences that will keep your shoppers returning again and again. After all, personalization is about getting to the root of what customers have shown you that they want and delivering against that.

Use the data you gather to tailor each user’s experience on your site
Use the data you gather to tailor each user’s experience on your site (Source)

 

As with your customer journey, responding to ever-changing desires can be challenging, so knowing your customers intimately is crucial for personalization success. Get it right and the impact is high so don’t leave any stone unturned when exploring improvement opportunities.

 

3. Implement server-side testing and feature management

Bring in the tech teams to expand your optimization activities!

Server-side testing is where we bring in the heavy hitters. While A/B testing can be rapidly implemented by marketing teams, server-side experimentation requires the buy-in and expertise of tech teams and developers.

Collaboration between the two groups is essential to deliver seamless customer experiences where the front-end (client-side) lures in your customers and the back-end (server-side) runs smoothly to ensure an effortless shopping experience. For instance, presenting a promotional offer (front-end) will only deliver results if the payment gateway runs glitch-free and the page loading times are fast (back-end).

Lukas Vermeer, director of experimentation at Vista, champions the value of testing both sides. “A lot of the value from experimentation…comes from two things: One is not shipping the bad stuff – a huge value point for experimentation. The other amount of value [comes from] figuring out strategically, going forward, what you should invest in.”

Lukas Vermeer, a guest speaker in the “1000 Experiments Club” podcast, champions the value of testing both sides (Source)

 

If your business has reached a certain level of maturity and sophistication, maximizing both client- and server-side testing will ensure that your optimization approaches are working the hardest they possibly can to deliver improved business outcomes.

 

How can customer experience optimization apply to different sectors?

E-commerce

Delivering digital customer experience optimization through experimentation can drive transactions, increase conversion rates and optimize user experience as you test your site in an effort to offer a smoother purchasing experience that caters to your users’ every need.

 

B2B

Not every website is for purchasing then and there; sometimes site visits are an initial step on a longer journey. You can drive lead generation for purchases in areas like automotive, bedroom furniture or holiday rentals by optimizing site layout, CTAs, and access to product and store information.

 

Travel

Offering a range of solutions, from individual products (like hotel or transport bookings) right up to comprehensive packages that take care of every step of a holiday, is a particularity of the travel industry. When bundling items together into packages, finding that pricing sweet spot is especially key. Server-side testing is particularly relevant in this field and can give you the tools to both curate your product offering and increase bookings as well.

Conclusion

When it comes to digital customer experience optimization, improving continuously is essential to your strategy; here at AB Tasty, we can’t stress that enough!

With both technology and customer attitudes evolving every second, the only way to keep the pace is by continuously adapting your company’s own optimization practices to respond to customer demands and unlock increased value and continuing loyalty.

Living and breathing such an approach means setting up your marketing, product and technical teams for smooth cross-collaboration and a shared mission and objectives. Ensuring that they’re also sharing the same experimentation and development roadmap to unlock resources and roll out improvements at the right time will keep your business on the road to success.