A/B Testing involves taking two separate content offerings to similar audiences and determining the better performing piece. Market tests can be used to rigorously examine the potential impact of changing tactics in a small group of your audience prior to fully implementing the tested changes.
Using the Sample Data options in this example App, a company with a customer database decides to create an email campaign with a discount code in order to generate sales through its website to its different locations. To implement this test, stores in the Denver (5 stores) and Sacramento-Stockton-Modesto (4 stores) DMAs (Designated Market Areas) were selected since the stores in these two DMAs are on average very similar to all stores across the chain, It creates an email and then modifies the Call to Action (the part of the copy which encourages customers to do something — in the case of a sales campaign, visit their location to make a purchase). The stores in these two areas are referred to as “treatment” stores.
At this point the test has been run. What remains to be done is to select a set of “control” stores that are similar to the treatment stores in terms of their pre-test growth rates and seasonal demand patterns. This analytical app determines the growth rates and seasonal patterns of all stores, matches three control stores to each treatment store, and conducts an analysis that compares the treatment to control stores during the market test on important operating criteria such as store traffic, gross revenues, and spending per customer.
