I recently posted on the importance of monetizing the results of GWO experiments. In that example, we increased conversions by 122%. So it wasn’t terribly surprising that the annualized revenue lift was estimated in the millions.
In today’s example, our experiment showed what appear on the surface to be more middling results: a 10.3% lift. Initially, we were somewhat disappointed with this barely-into-double-digits improvement.
When we did the arithmetic, however, we were pleasantly surprised. If the numbers hold, this simple A/B test could lead to an increase in annual revenue of about $1,000,000.
Future tests will reveal whether numbers do in fact hold. But even if the true impact is only 1/10th of our early estimate, the value of running this test is undeniable.
Though large improvements in conversions are always preferred, remember that even little improvements can yield great financial gains. In some cases, gains of less than 1% can have a huge annualized impact on revenue. Always do the arithmetic.