Explainer: What is A/B Testing?
By Stanford Graduate School of Business
Key Concepts:
- A/B Testing: A method of comparing two versions of something (e.g., email subject line) to determine which performs better.
- Experiment Groups: The divided recipients in A/B testing (Group A and Group B).
- Complex Online Platforms: Platforms with multiple user types (e.g., property owners and travelers) where experiments on one group can affect the other.
A/B Testing Explained
A/B testing is a method used by designers, engineers, and marketers to determine what will attract attention. The core principle involves creating two versions of something and comparing their performance.
- Example: A shoe company wants to determine which email subject line generates more sales: one with a sneaker emoji or one without.
- Process:
- Divide the email recipients into two groups: Group A and Group B.
- Send Group A the email with the sneaker emoji.
- Send Group B the email without the emoji (the basic version).
- Compare the responses of the two groups to determine which email subject line results in more clicks and sales.
Limitations of Traditional A/B Testing
While A/B testing has been a standard evaluation method for decades, its simplicity is challenged by the complexity of modern online platforms.
- Problem: In platforms with multiple user types, such as a vacation rental app (property owners and travelers), running an experiment on one group can influence the behavior of the other group.
- Violation: This violates a fundamental principle of A/B testing, which requires that the control and experimental groups are independent.
Upgrading A/B Testing
Researchers are developing new types of experiments to address the limitations of traditional A/B testing. The goal is to improve people's lives, not just online experiences.
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