Why is A/B testing and experimentation important?

Experimentation and A/B testing is the cornerstone of any online successful sales channel (be it end to end, sales leads or e-commerce).

Amazon is known for its vigorous A/B testing and experimentation culture. It shows in their customer centricity and has impacted their success rate substantially over the years.

Also, according to Dan Siroker, the 2007 Obama digital campaign also used A/B testing and raised $60 Million by running a simple experiment.

Experiments allow for a factual scientific way to validate business offering improvements. In other words, by using experiments a business increases its chances of not only selling more but also increase customer base and keeping existing customers happy.

As An International study done by WBR Digital have found there is a clear link between investment in experimentation and revenue:

“Those who have a purposeful testing strategy are seeing tangible benefits through increased sales. Early adopters are reporting revenue growth of over 20% from their optimization programs.”

Online sellers, sales lead generators and e-commerce retailers with low experimentation maturity tend to experience lower sales than their counterparts who have built a culture and know-how of testing and experimentation.

What business objectives does one want to achieve with

regards to experimentation?

This would be client-specific, however, a thorough funnel analysis could expose opportunity areas for revenue improvement or more customer acquisitions. If one considers the upstream part of the funnel customer interest and acquisition would be on the top list to improve using experimentation. 

More towards the last parts of the funnel one could aim to optimize conversion rates and per-customer revenue.

Each and every item of a website or app process that is optimized builds on a collective, so much so that the results are not merely added but can have a cumulative effect on bottom-line revenue.

Online sellers, sales lead generators and e-commerce retailers with low experimentation maturity tend to experience lower sales than their counterparts who have built a culture and know-how of testing and experimentation.