What Is A/B Testing And How Does It Work?

A/B Testing, also known as Always Be Testing, is a controlled experiment used in marketing, product development, and user experience design to compare two versions of a single variable, such as a webpage, email, advertisement, or app feature, to determine which one performs better. The goal is to make data-driven decisions that improve engagement, conversion rates, or other key performance indicators.

In the process, version A is typically the original, and version B is a variation that includes a single change. This change could be as simple as a different headline, button colour, or call-to-action, or as complex as a redesigned layout or alternative pricing structure.

The process begins by identifying a specific element or outcome to test, such as click-through rate on a landing page or open rate for an email. Two versions (A and B) are then created, differing only in the variable being tested. These versions are randomly and evenly distributed to similar user segments to ensure fair comparison.

After collecting sufficient data, statistical analysis is applied to determine which version performs better. If version B leads to a significantly higher desired outcome, it may be adopted as the new standard. This approach reduces guesswork and helps organisations optimise their content and experiences based on user behaviour.

Suppose AAR & Company, a marketing advisory firm, wants to increase the number of visitors who complete a purchase for its Templates. They run an A/B test where version A uses a red “Buy Now” button, while version B uses a green one. Over a few thousand website visits, they find that the green button results in a 12% higher conversion rate. With clear evidence of improvement, they implement the green button site-wide to boost overall sales performance.