S3E9 - Stop having bad test ideas - with Bart Schutz
Mar 25, 2023
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Exploring the impact of filtering out bad testing ideas, collaboration in CRO for valuable insights, challenges of statistics in behavioral science, differentiating between exploratory and confirmative experiments, applying consumer psychology to CRO, optimizing user behavior through behavioral science experiments, and the ethical side of digital experimentation.
Implement Exploration and Validation phases for effective testing programs.
Merge behavioral science with digital data for strategic behavioral experimentation.
Leverage System 1 nudges and System 2 drivers for enhanced decision-making in CRO practices.
Deep dives
Importance of Proper Experimentation Phases
By conducting an explorative phase followed by a confirmative phase in experimentation, the effectiveness of identifying bad ideas and testing good ideas increases significantly. Shifting towards validating good ideas leads to over 40% more growth, emphasizing the importance of utilizing both phases to enhance effectiveness by more than 10%, yielding potential growth additions of up to 80%.
The Evolution of I-Line Dialogue and its COO Agency Role
Bart Schutz's journey from usability testing to consultancy and then founding I-Line Dialogue showcases the fusion of behavioral science insights with digital data availability, leading to a behavioral data-driven approach. The collaborative efforts with Tom Vessling highlighted the inception of strategic behavioral experimentation, cultivating practical growth solutions and setting a pioneering path within the CRO scene.
The Significance of Randomized Controlled Trials and AB Testing
The podcast delves into the importance of AB testing, emphasizing its role as a randomized controlled trial aiding in data-driven decision-making. With substantial user data and statistical power, AB testing remains a pivotal tool in driving informed strategic choices. However, the replication crisis in CRO highlights the need to address false positives, underscoring the necessity of balancing statistical significance levels to avoid missed growth opportunities.
Exploring System 1 and System 2 Thinking in Digital Marketing
The discussion elucidates the dichotomy between System 1 automated, intuitive decisions, and System 2 conscious, rational thinking, incorporating the influence of cognitive biases and behavioral insights in CRO practices. By leveraging System 1 nudges and System 2 behavioral drivers like attention, motivation, and ability, experiments reveal a substantial winner ratio in choice architecture, underscoring the efficacy of system-based approaches in enhancing decision-making.
Ethical Considerations and Vulnerable Segment Insights
Delving into the ethical dimensions of influence behavior at scale, ethical considerations arise in CRO experimentation, unearthing unintended negative side effects and vulnerable segment impacts. Addressing the responsibility of CRO professionals towards ethical behavior, the podcast highlights instances of potential financial implications on vulnerable segments, advocating for mindful analysis, open discussions, and an ethical lens in experimental practices.