Article | February 7, 2019

A/B Testing And Its Intrinsic Link To Business Performance

Source: Split Software

By Adil Aijaz

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There are many virtues to A/B testing — the basic kinds of A/B testing at the user interface level, yes, but even more so the rigorous full stack experimentation form that goes deep into the workings of an application to continuously adjust and optimize code and performance.

Of course, the best way to appreciate full stack experimentation is to see how it works in actual business environments. Which is exactly the task that a trio of researchers from Harvard and Duke recently took on in “A/B Testing and Firm Performance”. The study combed data on more than 64,000 firms — assessing the use of A/B testing against KPI’s like online traffic, VC funding and other metrics.

Although A/B testing has a positive impact on the business as a whole, it is worth looking at a few specific areas where this can be felt the most.

Big and Online: The A/B Testing Sweet Spot

In their analysis, the Harvard Business School’s Rembrand Koning and Duke University Fuqua School of Business professors Sharique Hasan and Aaron Chatterji found that the biggest adopters and beneficiaries of full stack A/B testing tend to be bigger, younger and online-focused firms.