Maximizing A/B Testing: The Portfolio Strategy for Ecommerce Leaders
Feeling stuck in your A/B testing? You're not alone.
Many brands hit a plateau with traditional testing methods, struggling to see the growth they hoped for. At SplitBase, we've tackled this challenge head-on by developing a strategy that drives significant growth for 8 and 9-figure brands.
We call it the Portfolio Strategy—a game-changing approach for A/B testing that's helped brands like Dr. Squatch, Hyperice, and Amika achieve remarkable ecommerce growth.
But what makes this strategy so powerful? Let's dive into the key elements that set it apart and explore how you can leverage it to fuel your own brand's growth.
The Foundation of the Portfolio Strategy
Before we explore the three types of tests that form the core of our Portfolio Strategy, it's important to understand the philosophy behind this approach.
The Portfolio Strategy is the idea that sustainable growth comes from a balanced, diversified approach to testing. Just as a financial portfolio balances high-risk, high-reward investments with more stable, consistent performers, our testing strategy aims to create a balance between quick wins, steady improvements, and potential breakthroughs.
This approach allows us to:
- Mitigate risk: By not putting all our eggs in one basket, we ensure that a single failed test doesn't derail the entire optimization effort.
- Maximize learning: Different types of tests yield different insights, giving us a more comprehensive understanding of user behavior and preferences.
- Maintain momentum: Quick wins from iterative tests keep the team motivated while we work on more substantial changes.
- Drive both short-term and long-term growth: We can achieve immediate improvements while also working towards larger, transformative changes.
Now, let's examine the three types of A/B tests that form the backbone of our Portfolio Strategy.
Want to see the Portfolio Strategy in action?
I've created a video that dives deep into how we've used this approach to drive massive growth for 8 and 9-figure ecommerce brands:
A/B Testing Strategies For Ecommerce Brands to Maximize Growth
In this 4-minute breakdown, I explain how we balance iterative, substantial, and disruptive tests to achieve both quick wins and long-term breakthroughs. You'll see real examples of how we've applied this strategy to generate millions in additional revenue for our clients.
Three Kinds of A/B Trials
1. Iterative Tests
Iterative tests are your daily bread and butter. They involve low risk, require minimal resources, and are quick to set up. We're talking about minor modifications to existing elements on your site. You might change the destination page of button, test a different headline, or adjust the placement of an existing element.
While these are small changes, over time they can result in significant gains. The power of iterative tests lies in their compounding effect. A 2% improvement here, a 3% improvement there – these add up over time and across your entire funnel.
Key Characteristics of Iterative Tests:
- Low risk
- Quick to implement
- Require minimal resources
- Can be run frequently
- Results are often immediately actionable
When to Use Iterative Tests:
- When you want to fine-tune existing elements
- To quickly test different variations of copy, design, or functionality
- When you need to gather data quickly to inform larger decisions
SplitBase ran an A/B test on a client's website navigation, comparing visually highlighted "Shop Bundles" buttons against simple text links. Surprisingly, the text link-only variation gained 130% more clicks, challenging the assumption that visually prominent elements always perform better.
This test exemplifies the power of iterative testing. A simple change – switching from visual buttons to text links – led to a significant improvement in click-through rates. It's a reminder that sometimes, less is more, and that our assumptions about what works best can often be wrong.
An example of an iterative test would be as follows:
Customer Quote Headlines:
SplitBase tested a new landing page for beauty brand Amika, using a customer quote as the headline. This approach proved to be a clear winner, likely because the language resonated with customers and added social proof to the landing page.
This test demonstrates how leveraging user-generated content in key areas can significantly impact conversion rates. It's a substantial change that goes beyond tweaking existing elements, potentially changing how visitors perceive and interact with the brand from their first touchpoint
2. Significant Tests
Significant tests demand more effort. They may require a fresh copy, design assistance, and coding. We're either significantly changing user behavior or introducing something new. It's like renovating a room rather than just rearranging the furniture.
These tests often involve changes to key pages or processes on your site. They might include redesigning entire sections on product pages, overhauling your side-cart, or introducing new features to your site.
Key Characteristics of Significant Tests:
- Moderate risk
- Require more resources and time to implement
- Often involve multiple elements or pages
- Results can have a substantial impact on key metrics
When to Use Significant Tests:
- When iterative tests have plateaued in effectiveness
- To address known pain points in the user journey
- When introducing new features or functionality
- To align your site with evolving customer expectations or industry trends
For example, the following is a significant test:
In-depth Product Information:
For a fashion client whose products included variations in material, SplitBase introduced a new product page design with a fabric info chart. This change increased conversion rates by 26.8% by improving the customer experience and removing barriers to purchase.
This example shows how providing more detailed, relevant information can significantly impact purchasing decisions. It's a substantial change that required careful design and implementation, but the payoff in terms of improved conversion rates was considerable.
3. Disruptive Test
Here's where things start to get really interesting. Disruptive tests are high-risk, high-reward endeavors. They usually require significant changes to your site or business model and need extensive collaboration as well as substantial design effort. These tests might completely change how you approach e-commerce.
Disruptive tests often challenge fundamental assumptions about your business model, pricing, user experience, or value proposition. They're not for the faint of heart, but when successful, they can lead to exponential rather than incremental growth.
Key Characteristics of Disruptive Tests:
- High risk, high potential reward
- Require significant resources and buy-in from leadership
- Often involves fundamental changes to the business model or user experience
- Results can be transformative for the business
When to Use Disruptive Tests:
- When you're looking for step-change growth
- To stay ahead of or create industry trends
- When current business models or user experiences are becoming outdated
- To differentiate yourself in a crowded market
A prime example of a disruptive test is the introduction of a bundle builder. When added to Birthdate.co's website, it greatly improved conversions, average order value, and overall return on marketing spend for the personalized gift brand.
This test fundamentally changed how customers interacted with the brand's products, allowing for a more personalized, engaging shopping experience. It's a disruptive change because it alters the entire product selection and purchasing process, potentially appealing to a whole new segment of customers or dramatically increasing the value proposition for existing customers.
However, it's critical to note that disruptive tests don't always yield positive results, and what works for one brand may not work for another. In another case, removing a bundle builder from a client's website showed no changes in key metrics. This highlights the importance of testing assumptions, even when they've proven successful elsewhere.
Real-World Application of the Portfolio Strategy
Now that we've explored each type of test in detail, let's look at how the Portfolio Strategy might play out in practice over time for an e-commerce brand.
Month 1-2: Iterative Testing Phase
- Week 1-2: Test different value propositions in product page headlines
- Week 3-4: Experiment with reorganizing links in the navigation bar
- Week 5-6: Try various image types (lifestyle vs. product-only) on category pages
- Week 7-8: Test different moving educational sections higher up on product pages
Month 3-4: Significant Testing Phase
- Weeks 1-4: Redesign product pages to prominently feature user-generated content
- Weeks 5-8: Implement a section featuring new bundles on product pages
Month 5-6: Disruptive Testing Phase
- Weeks 1-8: Develop and test a new pricing model, such as a subscription-first approach for certain product lines
This timeline demonstrates how the Portfolio Strategy allows for continuous improvement (through iterative tests) while also working towards more substantial changes (significant tests) and potential breakthroughs (disruptive tests).
The Power of the Portfolio Strategy
The goal of the Portfolio Strategy isn't just about finding that one big win. It's about creating a systematic approach to improvement that compounds over time. Some tests will fail – that's part of the process. The key is to learn from each test, iterate, and keep pushing forward.
Here's why this strategy is so effective:
- Balanced Risk: By running different types of tests simultaneously, you're not putting all your eggs in one basket. If a disruptive test fails, you still have the gains from your iterative and significant tests.
- Continuous Improvement: Iterative tests ensure that you're always moving forward, even if in small steps. This continuous improvement can add up to substantial gains over time.
- Learning at All Levels: Each type of test provides different insights. Iterative tests might tell you about user preferences for specific elements, while disruptive tests can reveal larger truths about your business model or value proposition.
- Adaptability: The Portfolio Strategy allows you to adapt to changes in your business or market quickly. You can shift focus between different types of tests as needed.
- Motivation and Buy-In: Quick wins from iterative tests can help maintain team motivation and stakeholder buy-in, which is crucial when working on longer-term significant or disruptive tests.
Taking Action: Implementing the Portfolio Strategy in Your Business
Now that you understand the core elements of the Portfolio Strategy, it's time to put this knowledge into action. Here are some steps to help you get started:
- Evaluate Your Current A/B Testing Efforts: Start by reviewing your existing A/B testing practices. Are you only focusing on minor tweaks, or have you explored more significant and disruptive tests? Understanding where you currently stand is essential for identifying gaps and opportunities.
- Develop a Balanced Testing Plan: Based on your evaluation, develop a testing plan incorporating a mix of iterative, significant, and disruptive tests. Consider your business goals, available resources, and risk tolerance when planning your tests. Remember, the goal is to maintain a balance that drives both short-term wins and long-term growth.
- Create a Testing Roadmap: Outline a timeline for your tests, similar to the example provided earlier. An A/B testing roadmap helps ensure that you're continuously running tests and gathering valuable data, while also allowing for flexibility to pivot when needed.
- Invest in the Right Tools and Resources: Effective A/B testing requires the right tools and resources, from analytics platforms to skilled team members. Invest in tools that provide deep insights and support a wide range of testing types. Also, consider bringing on board experts in UX design, data analysis, and copywriting to maximize the impact of your tests.
- Focus on Customer Insights: Use each test as an opportunity to learn more about your customers. What resonates with them? What are their pain points? How do they navigate your site? By focusing on customer insights, you can make more informed decisions that drive meaningful improvements.
- Iterate and Optimize: The beauty of the Portfolio Strategy is its iterative nature. Each test result, whether a success or failure, provides valuable information. Use these insights to refine your approach, develop new hypotheses, and run subsequent tests. Over time, this iterative process will lead to more refined strategies and greater success.
- Communicate Results and Learnings: Regularly share your test results and learnings with your team. Open communication helps maintain momentum, fosters a culture of continuous improvement, and encourages collaboration across departments.
- Stay Agile and Adaptive: The digital landscape is ever-changing, and so are your customers' needs and expectations. Stay agile in your testing approach, be willing to adapt, and never be afraid to challenge assumptions or try something new. The Portfolio Strategy provides the flexibility needed to stay ahead of the curve.
- Consider Professional Guidance: While the Portfolio Strategy can be implemented in-house, many brands benefit from expert guidance. SplitBase offers comprehensive conversion optimization services that can help you implement this strategy effectively, from analytics and customer research to A/B testing and implementation.
The Portfolio Strategy we've implemented with 8 and 9-figure brands could be your key to steady improvements and breakthrough wins. By balancing iterative, significant, and disruptive tests, you create a robust, adaptable approach to conversion rate optimization that can drive substantial growth for your e-commerce brand.
Remember, the path to optimization is not always linear. There will be ups and downs, successes and failures. But with a well-structured testing strategy, each test – regardless of its outcome – brings you one step closer to understanding your customers and optimizing your e-commerce experience.
Work with SplitBase
The Portfolio Strategy we've implemented with 8 and 9-figure brands could be your key to steady improvements and breakthrough wins.
Ready to take your A/B testing to the next level?
Learn how SplitBase can help drive significant growth for your ecommerce brand.
