{"id":10111,"date":"2020-12-31T15:42:08","date_gmt":"2020-12-31T10:12:08","guid":{"rendered":"https:\/\/www.vue.ai\/blog\/?p=10111"},"modified":"2024-06-07T11:39:25","modified_gmt":"2024-06-07T06:09:25","slug":"a-b-testing-personalization-retail","status":"publish","type":"post","link":"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-b-testing-personalization-retail\/","title":{"rendered":"Retailer\u2019s Guide: How A\/B Testing Can Increase AOV By 16.5%"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e72ef3ed9dd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e72ef3ed9dd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-b-testing-personalization-retail\/#read-on-to-know-more-about-ab-testing-and-why-its-essential-for-retail-business-growth-in-2021\" title=\"Read on to know more about A\/B testing and why it\u2019s essential for retail business growth in 2021\">Read on to know more about A\/B testing and why it\u2019s essential for retail business growth in 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-b-testing-personalization-retail\/#what-is-ab-testing\" title=\"What is A\/B testing?\">What is A\/B testing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-b-testing-personalization-retail\/#how-does-ab-testing-work\" title=\"How does A\/B testing work?\">How does A\/B testing work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-b-testing-personalization-retail\/#the-importance-of-a-good-ab-test-design\" title=\"The importance of a good A\/B test design\">The importance of a good A\/B test design<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-b-testing-personalization-retail\/#the-perks-of-implementing-ab-testing-through-vuex\" title=\"The perks of implementing A\/B testing through VueX\">The perks of implementing A\/B testing through VueX<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-b-testing-personalization-retail\/#how-the-ab-testing-feature-on-vuex-can-help-retailers\" title=\"How the A\/B Testing Feature&nbsp;on VueX Can Help Retailers?\">How the A\/B Testing Feature&nbsp;on VueX Can Help Retailers?<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>Using <a href=\"https:\/\/www.vue.ai\/glossary\/ab-testing\/\">A\/B Testing<\/a> or split testing strategies to provide personalized experiences online should be the number one focus for retailers in 2021.<\/p>\n\n\n\n<p>With more shoppers online now than ever before, most retailers are riding on the personalization wave. They are working towards providing the best possible user experience with the help of AI&nbsp;<\/p>\n\n\n\n<p>And to unlock the potential of any tool, retailers need to understand the nuances of customer behaviour online. At Vue.ai, we\u2019ve been able to help retailers do exactly that. <strong>Here\u2019s how retailers can offer true 1:1 <a href=\"https:\/\/www.vue.ai\/solutions\/ai-personalization-engine\/\">personalization<\/a> on eCommerce in 2021:<\/strong><\/p>\n\n\n\n<ul><li>By constantly analyzing user behaviour and working with shoppers to help them make informed decisions<\/li><li>By enabling teams to run experiments and optimize user experiences on their eCommerce platforms<\/li><\/ul>\n\n\n\n<p>In our recently launched product, VueX\u2014 a platform to build personalised customer journeys\u2014 &nbsp;we introduced A\/B testing features for retailers to create multiple <a href=\"https:\/\/www.vue.ai\/blog\/vuecommerce\/retail-personalization-in-2021\/\">Retail personalization<\/a> strategies. This will enable them to make statistically-backed decisions to optimize customer journeys.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"read-on-to-know-more-about-ab-testing-and-why-its-essential-for-retail-business-growth-in-2021\"><\/span>Read on to know more about A\/B testing and why it\u2019s essential for retail business growth in 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing1-1024x576.jpg\" alt=\"Retailer\u2019s Guide: How A\/B Testing Can Increase AOV\" class=\"wp-image-10117\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing1-1024x576.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing1-300x169.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing1-768x432.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing1-1536x864.jpg 1536w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing1-2048x1152.jpg 2048w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing1-150x84.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-is-ab-testing\"><\/span>What is A\/B testing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Also referred to as split testing, it compares two variants of the same webpage to conclude which one performs better.<\/p>\n\n\n\n<p>This process allows retailers to solve essential business questions, generate more revenue from existing traffic, and set the justification for a data-informed marketing strategy.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-2-1024x576.jpg\" alt=\"Retailer\u2019s Guide: How A\/B Testing Can Increase AOV\" class=\"wp-image-10112\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-2-1024x576.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-2-300x169.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-2-768x432.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-2-1536x864.jpg 1536w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-2-2048x1152.jpg 2048w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-2-150x84.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-does-ab-testing-work\"><\/span>How does A\/B testing work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Typically in A\/B testing, the variant that gives higher conversions is the winning one, and that variant will help you optimize your site for better results.<\/p>\n\n\n\n<p>Retailers can show 50% of visitors version A (let\u2019s call this the \u201cType A\u201d), and the other 50% version B (let\u2019s call this the \u201cType B\u201d).<\/p>\n\n\n\n<p>The version of the webpage that ends with the highest conversion rate wins. If Type B had generated the highest conversion rate, that would be the winner, and the retailer can then push 100% of visitors to that variant.<\/p>\n\n\n\n<p>Let\u2019s say you\u2019re an eCommerce manager who\u2019s figuring out different ways to reduce bounce rate from a page, you could test them out with the A\/B testing feature in VueX.&nbsp; It randomly splits your site\u2019s traffic into the different variations you want to test and statistically determines which variation is actually achieving the goal you\u2019ve set. Goals could either be based on improving either engagement or conversion rates, depending on overall business goals.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-3-1024x576.jpg\" alt=\"Retailer\u2019s Guide: How A\/B Testing Can Increase AOV\" class=\"wp-image-10113\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-3-1024x576.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-3-300x169.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-3-768x432.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-3-1536x864.jpg 1536w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-3-2048x1152.jpg 2048w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-3-150x84.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Retailer\u2019s Guide: How A\/B Testing Can Increase AOV<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-importance-of-a-good-ab-test-design\"><\/span>The importance of a good A\/B test design<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\/B tests take the guesswork out of building winning shopper journeys. But the only thing worse than having no data is having bad data.&nbsp;<\/p>\n\n\n\n<p>In order to run statistically significant A\/B tests, retailers need to:<\/p>\n\n\n\n<ol><li>Define a clear goal or KPI they want to measure at the end of the test<\/li><li>Setup a test where the variations in the shopper journeys are distinct and kept to a minimum<\/li><li>Tests need to run long enough (at least 2 weeks) irrespective of whether it hits the statistical significance target<\/li><\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-4-1024x576.jpg\" alt=\"Retailer\u2019s Guide: How A\/B Testing Can Increase AOV\" class=\"wp-image-10114\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-4-1024x576.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-4-300x169.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-4-768x432.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-4-1536x864.jpg 1536w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-4-2048x1152.jpg 2048w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-4-150x84.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-perks-of-implementing-ab-testing-through-vuex\"><\/span>The perks of implementing A\/B testing through VueX<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>VueX enables retailers to test and identify personalized journeys that lead to increased conversion, <a href=\"https:\/\/www.vue.ai\/glossary\/average-order-value\/\">AOV<\/a>, engagement, revenues and profitability. The dynamic interface at VueX empowers retailers to modify their key parameters and tweak the underlying algorithms to fit their business goals without having to write a single line of code.<\/p>\n\n\n\n<p>The tool has a comprehensive analytics dashboard that helps constantly track, measure and analyze metrics at the most granular level. Retailers can identify primary and secondary metrics and track their trends on the dashboard.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-5-1024x576.jpg\" alt=\"Retailer\u2019s Guide: How A\/B Testing Can Increase AOV\" class=\"wp-image-10115\" srcset=\"https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-5-1024x576.jpg 1024w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-5-300x169.jpg 300w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-5-768x432.jpg 768w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-5-1536x864.jpg 1536w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-5-2048x1152.jpg 2048w, https:\/\/www.vue.ai\/blog\/wp-content\/uploads\/2020\/12\/AB-Testing-5-150x84.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-the-ab-testing-feature-on-vuex-can-help-retailers\"><\/span>How the A\/B Testing Feature&nbsp;on VueX Can Help Retailers?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>15.5 % increase in conversion over 8 months <\/li><li>2x increase in conversion rate over 2 months <\/li><li>10.2 % increase in engagement rate ~1 month <\/li><li>16.5 % increase in AOV for 3 months<\/li><\/ul>\n\n\n\n<p>VueX is a single product designed for retailers to build personalized journeys and A\/B test them, to identify winning ones.&nbsp;<\/p>\n\n\n\n<p>Whether you&#8217;re a marketing manager looking to increase the sessions on your product or a creative head trying to figure out the ideal design for your social campaigns, you can use the A\/B testing feature in <a href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/the-making-of-vue-ai-personalization\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>VueX<\/strong><\/a> to test your way to success!<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><strong>Read more about <a href=\"https:\/\/www.vue.ai\/products\/virtual-dressing-room\/\">Virtual dressing room<\/a><\/strong><\/p>\n\n\n\n<p>Read more about <a href=\"https:\/\/www.vue.ai\/solutions\/ai-personalization-engine\/\"><strong>personalization platform<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span> Using A\/B Testing or split testing strategies to provide personalized experiences online should be the number one focus for retailers in 2021. With more shoppers online now than ever before, most retailers are riding on the personalization wave. They are working towards providing the best possible user experience with the help of AI&nbsp; And to  &#8230;<\/p>\n","protected":false},"author":23,"featured_media":10116,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1162],"tags":[1163,1165,1164,1166],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How A\/B Testing Can Increase AOV By 16.5% For Retail Businesses<\/title>\n<meta name=\"description\" content=\"With A\/B testing, retailers can solve business questions, generate more revenue from existing traffic &amp; make data-backed decisions in 2021.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vue.ai\/blog\/ai-in-retail\/a-b-testing-personalization-retail\/\" 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