To properly understand the ongoing importance of AB testing, it is first important to recognise what things AI driven optimisation is valuable for:
No matter how mathematical an individual’s brain, there will always be a limit to how many segments can be managed before becoming too complicated. Especially when factoring in contextual data such as user activity, affinities, geography, etc. And with a host of permutations and combinations, picking a winning variation in the face of a constantly changing customer base becomes impossible. AI driven personalisation makes this hyper-personalisation a possibility that is manageable.
For instance, when it comes to experimenting with short-lived events for say, a holiday or back-to-school event, instead of running an AB test and trying to optimise on the fly, machine learning algorithms are able to predict positive outcomes for each individual and thus maximize revenue over the duration of the entire campaign.
Although AI driven personalisation is great at managing hyper-personalised copy and imagery, there are many things that AB testing is needed for:
In order to establish the foundations for ongoing AI optimisations we first need to design, develop and test the base foundational page assets. These assets (i.e. layout, imagery, copy etc.) can then be further optimised though AI automation. A well-thought-out AB testing program is crucial to design the base page assets effectively.
In many instances a business will want to develop products and components through user testing and UX best practice. However, even when this process is well-thought-out users can behave very differently in a real-life environment.
AB testing helps mitigate risks associated with launching new features or designs by allowing for iterative improvements and identifying potential issues before a full-scale rollout. By incorporating AB testing into the product development process, companies can enhance user satisfaction, increase conversions, and ultimately drive business growth.
Testing and optimisation isn’t as simple as winning or losing. In fact, there are times when losing result can lead to big insights. In these cases, the difference between learning something new and a failed test lies in the analysis—in refusing to take a result at face value. Through AB testing we can gain meaningful insights from failure that help us design better future solutions.
It is important not to underestimate the value of good experimental design. Thinking in advance about what you’d like to learn and having the underlying observations in data at your disposal is an important primer for developing successful products. Understanding what has worked well, and what hasn’t, is required to successfully iterate and develop features that will be meaningful to your users
AB testing strikes a balance between exploring different options and exploiting the best-performing variations. It allows for controlled experimentation with multiple variants simultaneously, ensuring that valuable insights are gained while optimising performance.
As you can see from the article so far, AB testing and AI should to be combined for the best outcome. Incorporating AI and hyper-personalisation will allow you to progress and scale your optimisation program at speed.
However, it is also worth noting the dangers of using algorithm assumptions.
We hope you found this article useful. If you would like to talk further please feel free to drop us a line at hello@daydot.agency and as a Senior Optimisation Manager I would be happy to set up a call, or start an email exchange.
Senior Optimisation Manager, Daydot