A/B Testing: Small Business Competitive Advantage?

We are aware of numerous companies that do not utilize A/B or Split testing as a marketing tactic. In some cases, smaller local businesses can capitalize on this opportunity. A/B testing, or split testing, is a method of testing advertising, in which a baseline control sample is compared to a variety of single-variable test samples in order to improve response rates. This testing method is often used to measure which single variable is most effective in increasing response rates or conversion rates. Many large scale corporations do not allocate significant resources to A/B testing within smaller local markets. By using A/B testing, local businesses are able to create a competitive advantage by testing and measuring online marketing tactics, such as banner ad placement, email campaigns, and pay-per-click campaigns. Simply running an A/B testing is not enough; the marketer should have a solid understanding of statistical analysis to determine the correct sample size, confidence level, and confidence interval. Check out www.sempo.org or www.webanalyticsassociation.com for additional details on A/B testing methods.