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Any eCommerce seller knows the ultimate goal is to convert more customers. If you improve your conversion rate (CVR), you'll produce more revenue: it's that simple.
Of course, nothing worth having is easy to obtain, and that certainly applies to growing CVR. Converting more site visitors into customers can be a daunting challenge, especially if you're not sure which tactics to use.
Fortunately, we've found the ideal starting block: A/B testing.
This handy process of exposing customers to different strategies gives you a simple method of identifying and implementing the best strategies for boosting conversions.
In this article, we'll explore what A/B testing is, how it works, why it's an essential tool for eCommerce, and how to implement it to increase your conversion rate.
What is A/B testing?
Take a deep breath, and repeat after us:
A/B testing, also known as split testing, is a process that allows you to test the performance of two versions of a web page, advertisement, or email by showing each version to different groups of visitors.
Testing in this way enables you to determine which version (out of 'A' or 'B') produces the best outcome based on your goals.
You can A/B test for just about any eCommerce objective to see the impact of your strategy on bounce rates, engagement, and more.
In this instance, we're specifically looking at the impact on conversions.
How does A/B testing work?
To conduct A/B testing, you must create two different versions of the strategy you want to test.
Here are some examples of tests that we've run ourselves, but the options are virtually endless:
- Call-to-action (CTA) button on an email
- Featured pictures in your ad copy
- Different types of offers on your site
You start by creating two different versions and showing them to separate groups of visitors.
You can do a 50/50 split, but most retailers like conducting their test on a control group. That way, you can have most of your business running as usual.
Here's an idea of some splits to run:
70% of site visitors: Browse as normal
15% of site visitors: See option A
15% of site visitors: See option B
You will need a solution to conduct the test and automatically show more of the winning variant, but we'll touch on this later.
Why is A/B testing essential for eCommerce sellers?
We can picture what you're thinking from here. Figuring out good tests to run, investing in new technologies, gathering and analyzing data, and trusting the results rather than intuition. It's a lot, but here's the thing.
The eCommerce industry is more competitive than ever, and competition is increasing faster than the market is expanding. In 2020, while physical stores were closed, eCommerce saw 10 years' worth of growth within 90 days. This growth was not short-lived, as online sales grew by 16% in 2021.
Yes, eCommerce sellers have more customers to target, but there are more retailers to compete with.
Every aspect - from website design to product images and descriptions – can influence your conversion rate. Without A/B testing, you won't have any data to help you optimize these factors, and your efforts to capture more customers would be a guessing game.
Rallying cry done – now let's lay out what you need to implement A/B testing at your business.
How to implement A/B testing to increase your conversion rate
You'll need a few things to get started with A/B testing for your eCommerce site. These are the basics that you'll want to nail early on:
Set a clear goal
Determine what you want to achieve with the test. In this case, we're looking for a CVR boost, but you should gain some perspective on what defines a "good" result.
A CVR increase between 1-5% could generate hundreds of thousands in extra revenue over the course of a few months. If your improvement is in the double digits, it could be a game-changer.
Identify the variable to test
Choose a web element, such as a headline, image, or CTA, and create two different versions.
On-site offers provide a great foundation to run tests and see which converts, but feel free to pick your own starting point.
Decide the number of visitors required for the test
Ensure that you have enough visitors to get statistically significant results. The bigger the site, the bigger the sample group. Even a test on 10% of visitors can produce solid learnings if you have enough traffic.
Smaller sites will need to increase their test group to capture enough data. There are lots of good A/B sample size calculators to help with this step.
Designate the test duration
Give each of the variants of the website a logical time period so that the traffic distribution is as equal as possible. It's also essential to pick a long enough period to generate enough data.
Analyze and apply
Once you've generated enough data, you analyze the results and implement the changes that positively impacted your conversion rate. Here's an example of the data you'll be looking at:
You'll need a dedicated technology to do this step properly, so let's take a look at what you need.
Things to look for when picking an eCommerce A/B testing tool
Much of your existing tech stack will give you built-in options for A/B testing. However, when it comes to your website, there are some instances where it pays to have a dedicated tool.
For example, if you want to test different eCommerce offers, you'll need something that lets you go granular by testing different offer types, images, copy, and placement options.
You'll also need something that analyzes your results in real time and automatically pushes the winning variants. Otherwise you risk being slower to implement the changes and could lose a ton of revenue.
Finally, it pays to have an element of service to accompany your solution. With eCommerce offers, it can be difficult to decide which tests to run, which is where having a team of experts to advise on potentially valuable tests comes in handy.
Conclusion
We can all agree that A/B testing is a powerful tool for enhancing your eCommerce conversion rate.
The practice can help you tweak and perfect various elements of your website, leading to increased conversions, delivering more revenue, and new customers.
By incorporating A/B testing into your eCommerce strategy with small tests, you can gain an edge in this highly competitive industry.
