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Drive and Convert

Episode 120: I’m Running Experiments. Why Hasn’t My Conversion Rate Gone Up?

Nov 19, 2024
Experimentation is crucial for growth, yet not always linked to improved conversion rates. The hosts discuss how real-world variables complicate the interpretation of results and why focusing solely on conversion rates can be misleading. They highlight the importance of user segmentation and caution against false positives in experiments. The conversation encourages a holistic approach to digital optimization, emphasizing the ongoing value of experimentation despite economic pressures. It's a nuanced look at making sense of metrics in a complex digital landscape.
26:38

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Quick takeaways

  • Experimentation is essential for e-commerce growth, but an increase in conversion rates is not guaranteed due to external factors.
  • False positives can mislead brands regarding experiment effectiveness, emphasizing the need for skepticism when evaluating results.

Deep dives

The Role of Experimentation in E-Commerce Growth

Experimentation is crucial for e-commerce growth, as it allows brands to derive meaningful insights and make data-driven decisions. However, an increase in conversion rates is not guaranteed simply because experiments are conducted. According to research, startups that embrace experimentation often see substantial gains in performance over time, especially those that engage in routine A/B testing and other validation techniques. The misconception that running experiments will definitively lead to improved conversion rates can lead to frustration when results are not immediately apparent.

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