The Daily Feed Issue #37: AB testing and why it will make you more money

Welcome to Issue #37 of The Daily Feed. If this email was forwarded to you by a friend, you can subscribe on this page. You can read previous editions of The Daily Feed on our blog but note that posts to our blog are delayed 24 hours or more. 

One of the factors that have been critical to our success at Feedjit is AB testing. So what is AB testing and why will it make you more money?

I'm going to start with a very basic example. Lets say you're selling antique coke bottles. You have a page that displays your inventory. A customer clicks a coke bottle and gets taken to a checkout page. On that page they enter their credit card number and hit submit. The order is placed and you get paid. 

Imaging the two pages I've described above as a funnel. 1000 people a day land on the first page with the coke bottles. A certain percentage click through to the checkout page. And a percentage of those enter their credit card and buy from you. Here's what it looks like:

1000 people arrive on product page ---10% click through--->100 people on checkout page ----10% buy---> 10 people bought.

In the above illustration, if your browser hasn't mangled it, you have a 10% click-through rate at each step in your two page funnel. That results in 10 purchases. 

If you can increase your clickthrough rate from the product page to the checkout page by 5% that means you get 15 purchases at the end of your funnel. 

AB testing lets you put up two unique versions of a page in your funnel and then test which of those pages causes more people to click through to the next step in the process and ultimately buy. 

Our site has several products and we carefully monitor what kinds of things cause people to click through to the next step in the funnel and what kinds of things cause them to buy. We've made some interesting discoveries that I'll share with you as the week progresses. 

Regards,

Mark Maunder

Feedjit Founder & CEO

--
Feedjit respects your privacy. Please click here if you would
like to stop receiving these emails or if you have joined a list and
would like to unsubscribe. You can contact us at <support@feedjit.com>.
Our postal address is: 1916 Pike Place, Suite 12365, Seattle, WA, 98101.