ABTesting
ABTesting
ABTesting
Agenda
• Causation
• Modeling vs Experimentation
• Examples
• A/B Test
• Testing Process
• Summary
Road not
taken?
Have you ever wondered where you might
be today had you done something
differently in the past?
Causation
Did social media marketing make revenue
grow?
Modeling vs
Experimentation
Modeling
Advantages
• Easy & cheap
Disadvantages
• Needs a lot of data
• Uncertainty due to omitted variable
bias
Experimentation
Advantages
• Accurate
Disadvantages
• Comparatively expensive
Media vs No Media
How do we know if
the new medicine Test
works?
EffectivenessDrug
Control
EffectivenessPlacebo
Placebo Effect
Experimentation
Generic
Personalized
Experimentation
Generic
Personalized
A/B Test
40%
90%
Generic
Personalized
A/B Test
Read Rate
90%
40%
Generic Personalized
Testing Process
Test the effect of marketing email subject on read rate
90%
This initial test will gauge the potential. If results are promising, multivariate tests can further estimate
impact of subject variations. Once rich data is gathered in the future, predictive models can optimize
email subjects.
Testing Process
Read Rate Results
90%
40%
Generic Personalized
This initial test will gauge the potential. If results are promising, multivariate tests can further estimate
impact of subject variations. Once rich data is gathered in the future, predictive models can optimize
email subjects.
Testing Process
Multivariate Testing
Multivariate Testing
Multivariate Testing
Multivariate Testing
Multivariate Testing
https://vwo.com/blog/multivariate-testing/
Takeaway
• Causal Modeling
• Experimentation
• A/B Testing Process