Sunday, 15 September 2013

Next Best Action and A/B Testing

How to use A/B Testing for Customer Analytics

Next Best Action is a learning based on the response of the previous action. Every action/offer is an test offer.

A/B split testing

A/B Tests work like this. Say Two different email messages (Message A / Message B) are sent to customer segments and the responses are measured by the following factors

Mail Open
Clicks on Links
Conversion (Purchase etc)

If say the more number of Message As are clicked than Message B, then A is said to be more effective.

Email Response analysis

The responses are then analysed - responders / non-responders are segmented and analysed. The model is then refreshed.

Once the model is refreshed the customers can be retargeted / left alone

Retargeting Customers

Retargeting is to try out the offer / promotion / message another time. They can send the same message / a different customized message

A/B Testing in Web Page Design / Website Traffic

A/B testing in websites use different web page content on version A and version B of a page. The pages are loaded randomly to the user. The responses / conversions are analyzed. Next Best Action is defined for each page and the conversion rate is nothing but the rate of action being taken for the total visits. Some of these might be different design for version A and B or different positioning of elements etc

Case Study - Victoria Secret A/B Testing

Victoria Secret - the leading eCommerce vendor is testing its

Email Subject lines
Offer and Image

using A/B testing (see Site Doublers for the complete case study)

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