A/B Testing and CRO
A/B testing Overview
A/B testing has been around since the early 1990s and is used by companies to determine one success pattern over another. Companies will set up two versions of a webpage and divide users into two groups that are randomized.
There are five main steps to conduct A/B testing. The first step is data collection. Using web analytics tools, you can determine how your website is performing. For example, you can identify pages with low conversion rates and high bounce rates. The second step is to create a hypothesis using the data you collected in the first step. A hypothesis is a prediction you create prior to running an experiment and it is important that your hypothesis focuses on your main goal: increasing conversions. The third step is to create two or more variants of the same web page (A and B). For example, changing the wording on Page A or the color of a button on Page B. The fourth step is to run the test using A/B testing software that will automatically assign the randomized groups to the original or testing experience. It is important to let an appropriate amount of time go by before applying the last step, analyzing the results. This is when you look at the results from both pages and decide if there is statistical significance between the two.
CRO Overview
Conversion rate optimization (CRO) is the strategy of increasing the number of users that convert on your website. The formula to calculate your conversion rate is as follows:
(number of conversions/total number of visitors) x 100.
When thinking about CRO, there are 3 main questions you should ask:
The average conversion rate for a website is between 1-4%. However, most companies don't publicly report this number. There are three tools you can use to monitor your conversion rates which include quantitative, qualitative, and tools that identify and test potential changes to increase conversion rates. Quantitative tools are analytical tools that help you collect numerical data. Qualitative tools help you collect feedback from your customers. Finally, after having collected quantitative and qualitative data, you use A/B testing to determine strategies that increase conversion rates.
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How do they work together?
The goal of CRO is to increase conversions on your site. A/B testing is an important tool that helps you reach that goal by finding the most successful user experience to increase conversions.
How do they differ?
A/B testing is the practice of setting up different versions of the webpage whereas CRO is actually implementing the successful path to increase the conversion rate.
Overall, CRO and A/B testing help businesses know what is going on with its website and how to react to it.
