In A/B testing scenarios, the effectiveness of marketing treatments A and B is often evaluated through metrics such as purchase rates and revenue per buyer. Marketers must decide whether to emphasize driving more customers or maximizing revenue from those purchases. The ultimate goal is to assess which treatment generates more total revenue. This requires calculating mean revenue for both treatments by accounting for the number of candidates treated, enabling a clear comparison between the two approaches to better inform future campaigns.
"In A/B testing of marketing treatments, the pivotal question is whether your focus should be on driving more purchases or maximizing revenue per buyer."
"A/B testing should evaluate whether Treatment A or B drives more revenue overall, based on measured revenue divided by the number of candidates treated."
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