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2019-07-15
Software Development

Could A/B tests be useful for your business?

Katarzyna

A/B tests in product development are a chance to increase product attractiveness (conversion) and as a result generate more profits. Although opinions on the validity of such tests are sometimes divided, I have no doubt that they have offer many advantages. Even the largest brands in the world such as Facebook or Google use in-depth testing before introducing a new solution to the market.

From my point of view, in 80% of cases A/B tests can be helpful and are very important for the development of your business. When someone challenges the effectiveness of such tests, I do emphasize that companies like Facebook or Google (which set global trends) test all their solutions on users. There is no fortuity here. For example, when you are browsing Facebook you probably do not even know when a feature you’re using is part of a current test.

This approach allows for accurate business decisions made with the greatest precision. You can perform A/B tests for many areas, such as design, marketing, sales etc. However, in this article, I would like to focus on a general understanding of why this approach can bring benefits to your business. I want to emphasize that it does not matter what size of business you run – a startup or a big corporation. The A/B test should always make sense if it is properly used.

A/B tests for business

Basic rules of A/B tests

Based on my experience, I have prepared a list of tips that you should keep in mind when considering A/B testing your product. If you stick to these 10 principles, I am convinced you will see the advantages, and more importantly, A/B tests will stimulate your business growth.

  1. Remember about ROI (return on investment). The A/B test will only make sense if you are able to really increase the value of your product and you need to know what will help you apply the best solutions.
  2. Analyze what profits you can gain from making the changes the A/B tests suggest. You need to assess the level of profitability and be sure that changes will not be a threat to your product.
  3. Take into account that A/B testing and the changes you make may not be cost-effective at this point, but may be of benefit in the long run. This will make your product grow.
  4. If you carry out tests, remember that products should differ by one feature. This will allow you to get a reliable answer on which solution will work better in practice.
  5. If your product is already on the market, remember that A/B tests must be carried out skillfully. Try to ensure that users are not aware you are currently checking something, because it can be irritating and distracting.
  6. A/B tests should provide you with quantitative data. This means that making decisions based on numerical data will always be more accurate than using your own intuition or predictions.
  7. Do you strive to minimize risk and make budget savings? No problem. Start A/B tests on smaller functionalities to ensure that this approach works for your product. Then you will be able to progress to more time-consuming and more expensive tests.
  8. Remember that you must have the right sample of people so that the A/B tests are reliable and you can make further decisions based on the results.
  9. If you care about increasing the value of your product, conduct deep research and think about your biggest problems or challenges. This analysis will be provide great material for A/B tests.
  10. Consider using test experts who will be able to carry out A/B tests with the highest efficiency.

A/B testing for business - is it worth to launch?

Do A/B tests make sense for my business?

At the start of this article, I gave my opinion that A/B tests make sense in 80% of cases. Of course, there are exceptions that either prevent the tests from being carried out or cause them to have no real benefit. This may be the case – for example – for early-stage startups. But you know, it depends on many different factors.

However, no matter if you are now convinced or not that A/B tests will work for your product, I suggest you do deep research and analysis, and follow my 10 tips. This should help you find the right answer.

If you have any questions related to A/B tests, and in particular with regard to software development, please feel free to contact me and I will try to help you.

Read more:

  • Why tech startups fail? Five (not) obvious common reasons
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  • Codest’s good practice for building software: project documentation

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