Are you focusing on the wrong A/B test?
Like it or not, A/B testing is time consuming.
You need to start with a hypothesis, design new pages, write conversion-friendly copy, run the test and analyze the results. All this may take anywhere between 1 to 30 days.
If you look closely, you’ll find plenty of pages or sections that you can improve. And you can’t test all of them right away.
So, how do you prioritize your A/B tests?
Deep inside, you already know which pages are most important. So you’ll redesign and test those first. But I think that’s not good enough. There’s always an opportunity cost involved and you could be missing something more important!
So how do you prioritize? By using a simple metric I like to call
Return on Effort
And how do you calculate this?
Step 1 Make a list of the pages or sections you want to improve
Step 2 Estimate the Revenue Impact of improving each page. Here’s one way:
- For each page or section define a realistic, achievable goal. This could be an X% increase in signups, revenues, pages/visit or any other metric that is most important for your business
- Attach a dollar-value to each of those metrics. For example, if you have 1 paying customer for every 25 signups and the average revenue per customer is $100, then the dollar value per signup is (100/25) = $4 per signup
- Based on your goals, estimate the potential revenue impact from improving each of those pages
Step 3 For each of your pages, estimate the time required to hypothesize, plan, design new pages and go live with an A/B test
Step 4 Divide the Potential Revenue Impact by ‘Time Taken’. That’s your RoE
Here’s an example:
There you go, the pages with the highest RoE should be the ones that you must focus on right away. This entire exercise may take 1 or 2 hours but it will be time well spent. You can now focus on the pages or sections that truly matter!
How do you prioritize your A/B tests? I’d love to hear your views in the comments.