Explainer: What is A/B Testing?

By Stanford Graduate School of Business

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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:
    1. Divide the email recipients into two groups: Group A and Group B.
    2. Send Group A the email with the sneaker emoji.
    3. Send Group B the email without the emoji (the basic version).
    4. 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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