Organizational Experimentation: A/B testing
A/B testing in its simplest form is testing version A vs. version B of just about anything. Companies frequently run A/B tests to determine customer needs, efficiencies, and much more. When it comes to organizational experimentation, A/B testing is a natural fit. Modern business requires flexibility and data-driven solutions. A/B testing within your organization can give you the insight required to make the best decisions moving forward.
Benefits of A/B Testing
In today’s world, information is cheap. There is enough data to keep analysts busy for ten lifetimes. The more pressing issue is what to do with that data. A/B testing offers a simple yet highly effective method of determining which decision is best for a company moving forward.
Effective A/B testing is impartial. This reduces the propensity for organizations to simply go with the first idea, or perhaps with the idea of an executive rather than a better idea from a lower ranking employee.
A/B testing also renders clear results when administered properly. Successive rounds of A/B testing can reduce variables and lead to a clean winner. This type of testing is also highly repeatable, and can be continued indefinitely with any number of variables being tested.
Single Variable A/B vs. Multivariate vs. Multi-page Testing
Of course, A/B testing is not the only option when it comes to organizational experimentation. Different organizations may choose any of the following methods:
A/B testing examines a head-to-head test between two different products, methodologies, or other variations. Generally, A/B tests are conducted with a single variable at play. The power of A/B testing is in its simplicity and clarity.
Multivariate testing is primarily executed as an A/B test as well, with the addition of multiple variables. Some organizations may prefer multivariate testing as variables can have a waterfall effect, creating complex relationships rather than straight forward, “a is better than b” results.
Multi-page testing is another variation of A/B testing which is more fine tuned to web testing. Also known as funnel testing, multi-page testing allows companies to test slight variations of the same concept on multiple pages to determine the efficacy of each.
Why is Organizational Experimentation Important?
As mentioned in the introduction, businesses are being asked to change more rapidly than ever. A flexible, mobile business will outmaneuver a static business in the vast majority of cases. Organizational experimentation is a method by which brands and companies can adjust to an ever-changing marketplace.
Experimentation within a company promotes several key concepts:
Everyone’s ideas are held in equal esteem. This goes both ways. If a receptionist has an idea, it will undergo the same testing as the CEO’s idea. This is not only healthy for the culture of the organization, but it will also allow the best ideas to organically rise to the top of the heap.
Ideas will be more well understood before they are implemented. Simply choosing the “correct” option is only half the battle. That option must also be successfully implemented within your organization. A/B and other testing allows users to better understand what will be coming next.
A/B testing at the organizational level is healthy for company culture. Organizational experimentation keeps things fresh. It keeps employees engaged, and it often leads to a better product and a better work experience for employees.
Tips for Effective Organizational Experimentation
The Harvard Business Review offers the following tips for successful organizational experimentation:
- Utilize a small, focused team. The HBR recommends a three (3) to four (4) person team for A/B testing.
- Select a single metric to test, but measure all available metrics. This is where lots of organizations drop the ball for A/B tests. It is virtually impossible to pin down causation when multiple variables are being tested at one. Yet it is vital that all data is collected during testing. You never know what results might crop up.
- Look at micro-data, not just the averages. A test may show that the results on average were not remarkable, but a single group may have been dramatically impacted.
- Test small, change quickly. Rather than creating a huge change and testing it at once, the HBR advises testing small changes and adjusting accordingly.
- Test, test, and re-test. The only risk of re-testing is seeing the same results. A/B organizational testing should be a commitment.
Use A/B Testing to Grow Your Brand with Clock Tower Insight
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