Controlled Experiment

A controlled experiment involves comparing two or more groups that are identical in every way except for one factor. This is the variable we manipulate to see it's effect.
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What is a controlled experiment?

A controlled experiment involves comparing two or more groups that are identical in every way except for one factor – the independent variable. This is the variable we manipulate to see if it has an effect. The other groups serve as a control group, providing a baseline for comparison. By keeping all other factors constant, we can confidently attribute any observed differences in the dependent variable (the outcome we’re measuring) to the independent variable.

For example, a company may use a controlled experiment to test how changing the content of a CTA button affects click-through rates. By presenting one version to a test group and another to a control group under identical conditions, the company can determine the impact of the change.

What is controlled experiment

How does controlled experiment work?

  1. Define the hypothesis: Start by identifying what you want to test and what you expect to happen.
    Example: Changing the headline on our homepage will increase sign-ups by 10%.
  2. Identify the variable: Choose a single factor to test, such as a headline, image, or pricing strategy.
  3. Create test and control groups: Divide your audience into two groups:
    • The test group experiences the change.
    • The control group interacts with the original version.
  4. Run the experiment: Present the variable to the test group while keeping everything else identical for both groups.
  5. Measure results: Use relevant metrics to compare the performance of the test and control groups.

Types of controlled experiments

In marketing, controlled experiments are essential for testing strategies and making data-driven decisions. Here are the most common types:

  • A/B split testing: Compares two versions of a single variable (e.g., a webpage, email, or ad) to determine which performs better.
  • Multivariate testing: Tests multiple variables simultaneously to understand how their combinations influence results.
  • Geo testing: Tests marketing strategies by applying changes in specific geographic regions while keeping other areas as controls.
  • Randomized Controlled Trials (RCTs): Customers are randomly assigned to different treatment groups to isolate the effect of a specific variable.

Why are controlled experiments important?

A controlled experiment is a great method for businesses that aim to make data-driven decisions. Here’s why they matter:

  • Accurate insights: By isolating variables, you gain a clear understanding of their impact.
  • Risk mitigation: Test changes on a smaller scale before implementing them widely, reducing the risk of negative outcomes.
  • Informed decisions: Data from controlled experiments provides a solid foundation for strategy and planning.
  • Clear cause-and-effect relationships: Understand exactly how a variable influences outcomes.
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