Mathematical model for maximizing testing velocity (Ecommerce CRO)

Mathematical model for maximizing testing velocity (Ecommerce CRO)
Mathematical model for maximizing testing velocity (Ecommerce CRO)

Success in the ecommerce world revolves around several key metrics, one of which is the Average Order Value (AOV). This metric, simply put, is the average amount a customer spends per transaction on your website. The higher the AOV, the higher your profits. But, to significantly increase the AOV and, consequently, the profitability of your online store, it's essential to delve into three vital concepts: Testing Limits, Testing Speed, and Educated Guess Testing.

#1 Testing Limits

When we talk about testing limits in ecommerce, it’s much like trying to beat a personal record in high jump. You have a current best jump height, and you have an ultimate jump height you aspire to reach. In this context, your current performance is your "local maxima," and the peak performance you can potentially reach is your "global maxima."

Just as you’d need to train and adopt new techniques to leap higher, optimizing your online store requires pushing beyond current boundaries and innovating. This process might involve creative problem-solving, unique marketing strategies, and even revamping some aspects of your website’s user interface. Remember, every inch towards your global maxima contributes to a better-performing, more profitable online store.

#2 Testing Speed

Another concept central to ecommerce optimization is "testing speed." This term refers to how quickly you can learn which changes benefit your online store and which ones don't. The faster you can carry out these tests and interpret the results, the quicker you can make improvements.

Imagine a racing pit crew. Their efficiency and speed in tweaking a car during a pit stop can make the difference between first and second place. Similarly, an ideal balance between testing speed and maintaining high quality of changes is crucial for enhancing your store's performance rapidly.

#3 Educated Guess Testing

Educated Guess Testing is essentially about making smart, data-driven predictions. For instance, you might predict that "if the checkout process is simplified (Action X), then the overall sales will increase (Result Y)." This hypothesis is then tested to verify if the predicted result is achieved.

This kind of testing is crucial because it ensures any changes you make are based on solid data and not just on a whim or gut feeling. It's like having a roadmap for your journey, rather than wandering aimlessly. With every correct prediction, you get a step closer to an optimized, more profitable online store.


Learn how you can also increase your store's eCommerce conversion rate today

Learn how you can also increase your store's eCommerce conversion rate today


By understanding these concepts, you can take a proactive approach towards making your online store more successful. Identify areas for improvement, develop strategies to enhance your sales, and implement these strategies swiftly. 

Remember, in the ecommerce landscape, time is indeed money. Rather than waiting for months to see if a plan works, it's advisable to test rapidly. It’s okay if everything isn’t perfect; the goal is to confirm the general effectiveness of the plan, not to achieve perfection in every minute detail.

For example, you might predict that changes to your store design and copy could initially make them 20% and 10% less perfect than they could be. However, if these changes only cause a 10% reduction in performance during testing, they're still performing 18% better than before. Following such encouraging results, you can refine and retest your changes to confirm and further optimize them.

Recognizing that everything in your online store is interconnected is key. A small adjustment in one area can significantly impact other areas and overall performance. As such, look at your store holistically when making changes and consider how each alteration contributes to improving overall success.

This comprehensive guide has attempted to break down some crucial concepts related to A/B testing and store optimization, demystifying them for beginners. By understanding

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