Conversion Rates through A/B Testing

Requirements Clarification & Assessment

1. Objective Understanding:

   • Primary Goal: Determine which version of the checkout page leads to higher conversion rates.
   • Key Metric: Conversion rate, defined as the percentage of visitors who complete a purchase.

2. Scope & Constraints:

   • Population: Define the audience (e.g., all website visitors, specific demographics, etc.).
   • Duration: Determine how long the A/B test will run to gather sufficient data.
   • Traffic Distribution: Decide on how traffic will be split between the two versions.

3. Data Collection & Integrity:

   • Ensure data collection mechanisms are in place to accurately track user interactions.
   • Consider potential biases (e.g., time of day, device type) that could affect results.

4. Statistical Requirements:

   • Define the significance level (commonly 0.05) and power (commonly 0.8) for the test.
   • Determine sample size necessary to detect a meaningful difference in conversion rates.