Multivariate Test vs AB Test: Which Wins for E-commerce?

In the paced world of online shopping improving your website can seem like navigating a maze. You’re aware that minor adjustments can greatly impact your sales. How do you determine which aspects to modify? This leads to the discussion of multivariate testing, versus AB testing. Many internet retailers find it challenging to select the testing approach often resulting in missed chances and wasted resources. The key is grasping the nuances of each method. Knowing when to utilize them. Drawing from my 25 years of experience, in e commerce I’ve witnessed firsthand how effectively applying multivariate and AB testing can turn a website into a conversion success story. In this piece I’ll walk you through the complexities of both techniques so you can make choices that will propel your business forward.

Why Use Multivariate Testing Rather Than AB Testing?

Back, in the days of my e commerce journey we used to trust our instincts when it came to making design choices. It’s amazing how things have evolved since then! Nowadays we have an array of tools at our fingertips and multivariate testing (MVT) stands out as one of the key players, in the game.

When comparing a multivariate test to an AB test it’s crucial to recognise the strengths of MVT. Multivariate testing excels when you’re dealing with complex pages or want to test multiple elements simultaneously.

Multivariate testing shines when you’re dealing with complex pages or want to test multiple elements simultaneously. Let me paint you a picture: imagine you’re revamping your product page. You want to test different headline styles, product image sizes, and call-to-action button colours all at once. That’s where MVT comes into its own.

MVT is wonderful because it reveals how various components complement each other like hosting a party and observing how guests enhance each others experience. For example a striking headline may excel when paired with a product image but lose impact when paired with an one.

I have experience working with a fashion retailer who utilised multivariate testing (MVT) to enhance their category pages. They tested different header styles, product grid layouts, and filter placements simultaneously. The winning combination increased their click-through rate by 27% – a result that would’ve taken months to achieve with simple AB testing.

What Is the Difference Between AB Test and MVT Test?

Lets simplify this;

AB Testing:

• Tests one thing, at a time
• Typically compares two versions of a page (A and B)
• Easier to set up and analyse
• Needs less traffic than MVT to be valid

Multivariate Testing:

• Tests multiple things at once
• Can compare many different combinations
• More complicated to set up and analyse
• Requires more traffic for reliable results

When deciding between multivariate testing and AB testing its important to grasp their core distinctions. Picture AB testing like a showdown between two contenders while MVT is more akin to a round robin tournament. Both methods have their roles in your optimization toolbox.

In my experience AB testing works well for wins and experimenting with major concepts. For example I once assisted an electronics store in testing two different homepage layouts. The straightforward AB test helped us swiftly decide on the direction without delving into details right away.

On the hand MVT proved useful when fine tuning a sports retailers high traffic product page. We tested combinations of product descriptions customer review layouts and cross sell sections. The valuable insights we obtained wouldn’t have been possible, with a series of AB tests.

Why Would a Brand Use AB Testing Rather Than Multivariate Testing?

Despite the power of MVT, there are times when good old AB testing is the way to go. When weighing up a multivariate test vs AB test strategy, consider these factors:

1. Limited Traffic If you’re running a smaller e-commerce site or testing a low-traffic page, AB testing might be your only viable option. MVT requires a lot of visitors to reach statistical significance across all variations.
2. When I was collaborating with a startup that was introducing a product line we found that AB testing helped us get results enabling us to make informed decisions without the long wait, for feedback.
3. Making adjustments can be quite helpful, at times. I recall a situation where I assisted a customer in selecting between two checkout methods. Conducting an AB test proved to be the approach, for evaluating this decision.
4. If you’re pressed for time or lack expertise, in analytics AB testing might be an option as it typically requires setup time and simpler analysis compared to Resource Limitations MVT.

Is Multivariate Testing the Same as AB Testing?

This question often arises when discussing multivariate test vs AB test scenarios. The short answer is no, they’re not the same, but they’re related.

When you consider AB testing it’s, like comparing apples to oranges whereas MVT is akin, to comparing fruit salad recipes. AB testing looks at two distinct versions, while MVT examines how multiple elements work together.

I once worked with a client who thought they were doing MVT, but they were actually running several AB tests in parallel. The difference? They weren’t looking at how the changes interacted with each other. Once we switched to true MVT, we uncovered insights about element interactions that led to a 15% increase in conversions.

What Is a Multivariate Test?

To truly grasp the multivariate test vs AB test debate, let me break down what MVT actually is. A multivariate test is like being a master chef experimenting with a recipe.

A multivariate test is like being a master chef experimenting with a recipe. You’re not just swapping out one ingredient; you’re tweaking multiple elements to find the perfect combination.

How it works:

1. Determine the elements to experiment with such, as the title, visuals and call to action buttons.
2. Develop versions, for each element.
3. Merge these variations to form iterations of your webpage.
4. Divide your audience among these iterations.
5. Evaluate which combination yields the results.

Real-world application: I once helped an outdoor gear e-commerce site optimize their product pages using MVT. We tested different product image sizes, various review layouts, and multiple “Add to Cart” button designs. The winning combination not only increased conversions by 23% but also revealed that larger images worked best with succinct review summaries and contrasting CTA buttons.

What Is the Downside of a Multivariate Test?

While MVT is indeed effective it does come with its share of obstacles. Here’s a few of the challenges I’ve faced;

1. Traffic Requirements MVT needs a lot of visitors to reach statistical significance. I’ve seen smaller e-commerce sites struggle to get meaningful results because they simply didn’t have enough traffic.
2. Complexity Analysing MVT results can be like solving a Rubik’s cube. With multiple variables in play, it’s easy to misinterpret data or miss subtle interactions.
3. Time Investment Setting up and running an MVT takes time. I once worked on an MVT for a large electronics retailer that took nearly two months to yield actionable results.
4. Resource Intensive MVT often requires more sophisticated tools and expertise. This can be a challenge for smaller teams or those new to advanced testing.

Why Is Multivariate Testing Important?

Despite its challenges, MVT is a game-changer for e-commerce. Here’s why:

1. Holistic Optimisation MVT allows you to see the big picture. It’s not just about individual elements; it’s about how they work together to create a cohesive user experience.
2. Efficient Testing Instead of running multiple AB tests sequentially, MVT lets you test various elements simultaneously, saving time in the long run.
3. Deeper Insights MVT can uncover unexpected interactions between elements. I’ve seen cases where seemingly unrelated changes had a synergistic effect on conversions.
4. Competitive Edge In the cutthroat world of e-commerce, the ability to fine-tune multiple page elements can give you a significant advantage over competitors.

Example: I worked with a luxury watch retailer who used MVT to optimise their product pages. By testing combinations of product video placements, pricing display styles, and trust badge locations, they increased their average order value by 18%. This level of nuanced optimisation would have been nearly impossible with AB testing alone.

How Is Multivariate Testing Different from ABC Testing?

ABC testing, often confused with MVT, is actually an extension of AB testing. Here’s the lowdown:

ABC Testing:

• Tests three variations (A, B, and C)
• Still focuses on one main variable
• Simpler than MVT but offers more options than AB testing

Multivariate Testing:

• Tests multiple variables simultaneously
• Can have many more than three variations
• Examines interactions between variables

I once helped a client who thought they needed MVT for their homepage redesign. After discussing their goals, we realised ABC testing was more appropriate. They had three distinct designs but weren’t looking to mix and match elements. The ABC test was simpler to run and still provided the insights they needed.

What Is the Difference Between Multivariate Testing and AB Testing Email?

When it comes to email marketing, both MVT and AB testing have their place. Here’s how they differ:

AB Testing in Email:

• Typically tests subject lines, sender names, or overall email designs
• Great for quick tests and clear comparisons
• Useful for time-sensitive campaigns

Multivariate Testing in Email:

• Can test combinations of subject lines, content blocks, images, and CTAs
• Provides insights into how different email elements interact
• Ideal for optimizing complex email templates

I recall working with a fashion e-commerce brand on their email strategy. We used AB testing to quickly optimise subject lines for flash sale announcements. But for their regular newsletter, we employed MVT to test various content layouts, image-to-text ratios, and CTA placements. The MVT approach led to a 30% increase in click-through rates over time.

What Type of Testing Is AB Testing?

AB testing is a form of split testing, which is a broader category of experimental methods used in marketing and user experience optimisation. Here’s what you need to know:

• AB testing compares two versions of a webpage or other marketing asset
• It’s a controlled experiment where traffic is split between the two versions
• The goal is to determine which version performs better based on predefined metrics

In my early days of e-commerce, AB testing was our go-to method for making data-driven decisions. I remember helping a client test two very different product description styles. Version A was brief and bullet-pointed, while Version B was more narrative and detailed. To our surprise, the longer, story-like descriptions outperformed the concise version by a significant margin.

What Is the Difference Between AB Testing and Split Testing?

This is a common source of confusion, even among seasoned e-commerce professionals. Let me clarify:

• AB testing is a type of split testing
• Split testing is a broader term that can include tests with more than two variants (e.g., ABC testing)
• In practice, many people use the terms interchangeably

I often explain it like this: all AB tests are split tests, but not all split tests are AB tests. It’s like how all squares are rectangles, but not all rectangles are squares.

In my consultancy work, I’ve found that clarifying these terms upfront helps teams communicate more effectively about their testing strategies.

What Are the Limitations of AB Testing?

While AB testing is a powerful tool, it’s not without its drawbacks. Understanding these limitations is key when weighing up a multivariate test vs AB test approach. Here are some limitations I’ve encountered over the years:

1. Isolated Changes AB testing only looks at one change at a time, which can miss complex interactions between page elements.
2. Time Consuming for Multiple Changes If you want to test many elements, running sequential AB tests can take a long time.
3. Misleading Results with Low Traffic For sites with low traffic, it can take a long time to reach statistical significance, or worse, lead to false positives.
4. Oversimplification Sometimes, the choice isn’t as simple as A or B. Real-world scenarios often involve more nuanced decisions.
5. Short-term Focus AB tests often focus on immediate metrics like click-through rates, potentially missing long-term effects on customer lifetime value.

I once worked with an e-commerce site that became overly reliant on AB testing. They were making decisions based on small, short-term gains without considering the overall user experience. We had to take a step back and implement a more holistic testing strategy that included qualitative user feedback alongside our quantitative tests.

Frequently Asked Questions About Multivariate Test vs AB Test

As someone who’s been in the trenches of e-commerce optimisation for decades, I’ve fielded countless questions about testing methods. Here are some of the most common queries in the multivariate test vs AB test discussion:

Wrapping Up: Choosing the Right Test for Your E-commerce Site

After 25 years in e-commerce, I’ve learned that there’s no one-size-fits-all approach to testing. The choice between a multivariate test vs AB test depends on your specific goals, resources, and circumstances.

Here’s my advice:

1. Start with AB testing if you’re new to optimisation or have limited traffic.
2. Use MVT when you have complex pages and enough traffic to support it.
3. Don’t be afraid to use both methods – they complement each other well.
4. Always tie your tests to business goals, not just metrics.
5. Remember, testing is an ongoing process, not a one-time event.

By mastering both AB and multivariate testing, you’ll be well-equipped to make data-driven decisions that boost your e-commerce performance. Happy testing!