THE MILLION DOLLAR CASE STUDY

Session #15:

How To Split Test For Improved Conversions

Journey to $1MM

May 31st, 2017

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What is split testing?

Controlled Randomized Experiment

Between two or more variations...

2

Will lead to Improved Metrics (ie click through rate,

conversions, profits, etc)

3 Reasons Why Split Tests Are Invaluable

Improve Conversion Rate:

An increase in your conversion rate

will increase your sales, and the

increased sales velocity increases

your rank, and gets you even more

sales.

All of this without needing to spend

on PPC or reduce your price etc.

Get More Visitors:

An increase in your sessions (from

CTR or keywords) has a similar

benefit.

Price Wisely:

The ROI of having your price where

it’s most effective can be

enormous.

The Trick Of Split Testing: Be Methodical

It’s like flipping a weighted coin, the more times you flip it, the more sure you can be which way it’s weighted.

Split testing is an ongoing process.

Market conditions, seasons, customer demand, competition, (and more) are constantly changing.

So best change your listing with the different versions many times, as opposed to just once.

Split testing, Amazon style:

Amazon only gives traffic data on a daily basis (therefore must make

changes daily at 12 midnight)

Sales velocity affects search rank (30 day rolling average)

5

How to do a split test manually6

1. Decided on the different versions of your product you would like to test. We recommend keeping it simple here and just

having 2 versions, an A/B test.

2. Wait until midnight of your listings Amazon Marketplace; This would be PDT for amazon.com

3. Referring to these versions as variant A, and variant B, update your listing to variant A.

4. The following midnight, update your listing to variant B.

5. Keep repeating this process, we recommend for 2 weeks, so as each variant gets one day of the week.

6. In seller central, business reports, “detailed sales and traffic by asin”, set this report’s date range to one day,

corresponding to the first day of your test.

7. Record the sessions, page views, total orders, units ordered, and conversion rate.

8. Do the same for each day of your test, noting which data corresponds to which variant.

9. At this point, we can see which variant is winning, by simply adding up the data for each of them. However it’s important

to calculate the statistical significance. The easiest way is to just input your data into an online calculator

10. A statistical significance of above 90% is pretty reliable. If it is less than this, we recommend continuing your test some

more.

What Should You Test?

1. The best products to test are your best sellers (assuming multiple products).

1. Greatest lever for Sales and Profits growth involve a Price or Image test

What Affects Sessions On Your Product Listing?

Title

Main Image

Price

What About Your Detail Page Affects Conversion Rate?

Title

All images

Price

Bullets

Description

Testing Main Image affects both Sessions and Conversions Rate

VS

10

The Split Testing Process

Create Your

Hypothesis

11

Identify What/How

To Test

Run Your Experiment

Measure Results

Rinse & Repeat

What’s the bottom line?

12

Use a data-driven approach to

outperform your competition.

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