Startups

Teach yourself growth marketing: How to perform growth experimentation through A/B testing

Comment

Image Credits: SCIENCE PHOTO LIBRARY (opens in a new window) / Getty Images

Jonathan Martinez

Contributor

Jonathan Martinez is a former YouTuber, UC Berkeley alum and growth marketing nerd who’s helped scale Uber, Postmates, Chime and various startups.

More posts from Jonathan Martinez

Without customers, there can be no business. So how do you drive new customers to your startup and keep existing customers engaged? The answer is simple: Growth marketing.

As a growth marketer who has honed this craft for the past decade, I’ve been exposed to countless courses, and I can confidently attest that doing the work is the best way to learn the skills to excel in this profession.

I am not saying you need to immediately join a Series A startup or land a growth marketing role at a large corporation. Instead, I have broken down how you can teach yourself growth marketing in five easy steps:

  1. Setting up a landing page.
  2. Launching a paid acquisition channel.
  3. Booting up an email marketing campaign.
  4. A/B test growth experimentation.
  5. Deciding which metrics matter most for your startup.

In this fourth part of my five-part series, I’ll take you through a few standard A/B tests to begin with, then show which tests to prioritize once you have assembled a large enough list. Finally, I’ll explain how to run these tests with minimal external interference. For the entirety of this series, we will assume we are working on a direct-to-consumer (DTC) athletic supplement brand.

A crucial difference between typical advertising programs and growth marketing is that the latter employs heavy data-driven experimentation fueled by hypotheses. Let’s cover growth experimentation in the form of A/B testing.

How to properly do A/B tests

A/B testing, or split testing, is the process of sending traffic to two variants of something at the same time and analyzing which performs best.

In fact, there are hundreds of different ways to invalidate an A/B test and I’ve witnessed most of them while consulting for smaller startups. During my tenure leading the expansion of rider growth at Uber, we used advanced internal tooling simply to ensure that tests we performed ran almost perfectly. One of these tools was a campaign name generator that would keep naming consistent so that we could analyze accurate data when the tests had concluded.

Some important factors to consider when running A/B tests:

  • Do not run tests with multiple variables.
  • Ensure traffic is being split correctly.
  • Set a metric that is being measured.

The most common reason for tests getting invalidated is confounding variables. At times it isn’t obvious, but even testing different creatives in two campaigns that have different bids can skew results. When setting up your first A/B test, ensure there’s only one difference between the two email campaigns or datasets being tested.

For example, if you want to test whether emojis perform well in your email subject lines, only add an emoji to one sample and change nothing else in the rest of the copy between the two variants. After you’ve selected which variable to test, you’ll want to confirm traffic is being split correctly and evenly between variants.

Email platforms like Mailchimp will have tools to help split email traffic evenly, but if you’re running a test on a channel like Facebook, the easiest way to split traffic is to manually separate the recipients while keeping the budget even.

Finally, make sure that you have a metric to measure the success of your test. If you’re testing subject lines in an email, the correct metric would be the email open rate. By determining this metric at the start, you will make picking a winner much faster once the data starts to come in.

You may also consider testing some secondary metrics and looking further down the funnel. For example, if you’re testing ad creatives and produce a click-bait asset, it may boost the click-through-rate of the ad, but the conversion rate down-funnel may suffer in comparison to the control assets. It is important to consider secondary metrics and not always rely on a single metric for measuring impact.

Start with these tests

If we were brainstorming the types of tests to run for an athletic supplement brand, I’d begin with a quick, basic list like this one:

  • Emoji versus no emoji in the email subject line.
  • Text-only email versus header image in the email.
  • Value proposition 1 versus value proposition 2 in ad creative.

While these are basic tests, I’d recommend them as a starting point because these tests won’t contain confounding variables and can be set up easily. For our athletic supplement brand, here’s an example of what an emoji subject line test could look like:

  • Control: Get your greens in one pill
  • Test: Get your greens in one pill 💊

To showcase what a deceivingly straightforward test would look like, we will use a test to measure how well ad creatives featuring men perform compared to those featuring women. To control for confounding variables in this test, we would need to make sure that both the male and female actors shoot their videos in the same spot, and the script has minimal differences. We’d also need to control for many more potential variables.

This is an example of a test you’d likely run with more than one actor for each creative before deciding which segment performs best. It’s not a great first test unless you’re feeling the need for a challenge.

Selecting winners

Now for the fun part! It’s time to analyze and select your test winners.

You want to make sure you have achieved statistical significance (stat-sig) before determining a winner. Stat-sig tells us whether our result is due to chance or if we have a consistent winner.

There are many stat-sig calculators on the web. I use Neil Patel’s calculator.

If you ran the email subject line test and are measuring the open rate metric, enter your sends and opens in a stat-sig calculator to determine if you can determine a winner. When I was working at Coinbase, we were comfortable with a minimum confidence level of 70%-80%.

Prioritizing growth tests

It’s common to have a plethora of ideas once you launch your first A/B test. That’s a great problem to have.

When I was leading fleet acquisition at Postmates, I had to constantly prioritize which tests we’d run due to the abundance of ideas and growth mediums we were examining. When a large list of good ideas is paired with the limited bandwidth of a startup, the need for thoughtful prioritization becomes paramount.

A quick eyeball test often works when ranking a list of tests, but if you’d prefer something more methodical, consider the RICE (Reach, Impact, Confidence and Effort) approach.

Example of a RICE scoring spreadsheet.
Example of a RICE scoring spreadsheet. Image Credits: Jonathan Martinez

In the example above, Test 3 has the highest RICE score. This was calculated by multiplying Reach, Impact and Confidence, and then dividing the result by Effort. This means Test 3 should be the first test to conduct given its high impact and the low effort required for launch.

One good habit to develop is to maintain a repository sheet that tracks all your performed tests and their results. This sheet can serve as an information bank if needed later.

Now that you have a few growth tests under your belt, we’ll next learn how to identify which metrics matter the most for your startup in the final part of this series.

Teach yourself growth marketing: Which metrics really matter?

More TechCrunch

Jasper Health, a cancer care platform startup, laid off a substantial part of its workforce, TechCrunch has learned.

General Catalyst-backed Jasper Health lays off staff

Live Nation says its Ticketmaster subsidiary was hacked. A hacker claims to be selling 560 million customer records.

Live Nation confirms Ticketmaster was hacked, says personal information stolen in data breach

Featured Article

Inside EV startup Fisker’s collapse: how the company crumbled under its founders’ whims

An autonomous pod. A solid-state battery-powered sports car. An electric pickup truck. A convertible grand tourer EV with up to 600 miles of range. A “fully connected mobility device” for young urban innovators to be built by Foxconn and priced under $30,000. The next Popemobile. Over the past eight years, famed vehicle designer Henrik Fisker…

5 hours ago
Inside EV startup Fisker’s collapse: how the company crumbled under its founders’ whims

Late Friday afternoon, a time window companies usually reserve for unflattering disclosures, AI startup Hugging Face said that its security team earlier this week detected “unauthorized access” to Spaces, Hugging…

Hugging Face says it detected ‘unauthorized access’ to its AI model hosting platform

Featured Article

Hacked, leaked, exposed: Why you should never use stalkerware apps

Using stalkerware is creepy, unethical, potentially illegal, and puts your data and that of your loved ones in danger.

6 hours ago
Hacked, leaked, exposed: Why you should never use stalkerware apps

The design brief was simple: each grind and dry cycle had to be completed before breakfast. Here’s how Mill made it happen.

Mill’s redesigned food waste bin really is faster and quieter than before

Google is embarrassed about its AI Overviews, too. After a deluge of dunks and memes over the past week, which cracked on the poor quality and outright misinformation that arose…

Google admits its AI Overviews need work, but we’re all helping it beta test

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. In…

Startups Weekly: Musk raises $6B for AI and the fintech dominoes are falling

The product, which ZeroMark calls a “fire control system,” has two components: a small computer that has sensors, like lidar and electro-optical, and a motorized buttstock.

a16z-backed ZeroMark wants to give soldiers guns that don’t miss against drones

The RAW Dating App aims to shake up the dating scheme by shedding the fake, TikTok-ified, heavily filtered photos and replacing them with a more genuine, unvarnished experience. The app…

Pitch Deck Teardown: RAW Dating App’s $3M angel deck

Yes, we’re calling it “ThreadsDeck” now. At least that’s the tag many are using to describe the new user interface for Instagram’s X competitor, Threads, which resembles the column-based format…

‘ThreadsDeck’ arrived just in time for the Trump verdict

Japanese crypto exchange DMM Bitcoin confirmed on Friday that it had been the victim of a hack resulting in the theft of 4,502.9 bitcoin, or about $305 million.  According to…

Hackers steal $305M from DMM Bitcoin crypto exchange

This is not a drill! Today marks the final day to secure your early-bird tickets for TechCrunch Disrupt 2024 at a significantly reduced rate. At midnight tonight, May 31, ticket…

Disrupt 2024 early-bird prices end at midnight

Instagram is testing a way for creators to experiment with reels without committing to having them displayed on their profiles, giving the social network a possible edge over TikTok and…

Instagram tests ‘trial reels’ that don’t display to a creator’s followers

U.S. federal regulators have requested more information from Zoox, Amazon’s self-driving unit, as part of an investigation into rear-end crash risks posed by unexpected braking. The National Highway Traffic Safety…

Feds tell Zoox to send more info about autonomous vehicles suddenly braking

You thought the hottest rap battle of the summer was between Kendrick Lamar and Drake. You were wrong. It’s between Canva and an enterprise CIO. At its Canva Create event…

Canva’s rap battle is part of a long legacy of Silicon Valley cringe

Voice cloning startup ElevenLabs introduced a new tool for users to generate sound effects through prompts today after announcing the project back in February.

ElevenLabs debuts AI-powered tool to generate sound effects

We caught up with Antler founder and CEO Magnus Grimeland about the startup scene in Asia, the current tech startup trends in the region and investment approaches during the rise…

VC firm Antler’s CEO says Asia presents ‘biggest opportunity’ in the world for growth

Temu is to face Europe’s strictest rules after being designated as a “very large online platform” under the Digital Services Act (DSA).

Chinese e-commerce marketplace Temu faces stricter EU rules as a ‘very large online platform’

Meta has been banned from launching features on Facebook and Instagram that would have collected data on voters in Spain using the social networks ahead of next month’s European Elections.…

Spain bans Meta from launching election features on Facebook, Instagram over privacy fears

Stripe, the world’s most valuable fintech startup, said on Friday that it will temporarily move to an invite-only model for new account sign-ups in India, calling the move “a tough…

Stripe curbs its India ambitions over regulatory situation

The 2024 election is likely to be the first in which faked audio and video of candidates is a serious factor. As campaigns warm up, voters should be aware: voice…

Voice cloning of political figures is still easy as pie

When Alex Ewing was a kid growing up in Purcell, Oklahoma, he knew how close he was to home based on which billboards he could see out the car window.…

OneScreen.ai brings startup ads to billboards and NYC’s subway

SpaceX’s massive Starship rocket could take to the skies for the fourth time on June 5, with the primary objective of evaluating the second stage’s reusable heat shield as the…

SpaceX sent Starship to orbit — the next launch will try to bring it back

Eric Lefkofsky knows the public listing rodeo well and is about to enter it for a fourth time. The serial entrepreneur, whose net worth is estimated at nearly $4 billion,…

Billionaire Groupon founder Eric Lefkofsky is back with another IPO: AI health tech Tempus

TechCrunch Disrupt showcases cutting-edge technology and innovation, and this year’s edition will not disappoint. Among thousands of insightful breakout session submissions for this year’s Audience Choice program, five breakout sessions…

You’ve spoken! Meet the Disrupt 2024 breakout session audience choice winners

Check Point is the latest security vendor to fix a vulnerability in its technology, which it sells to companies to protect their networks.

Zero-day flaw in Check Point VPNs is ‘extremely easy’ to exploit

Though Spotify never shared official numbers, it’s likely that Car Thing underperformed or was just not worth continued investment in today’s tighter economic market.

Spotify offers Car Thing refunds as it faces lawsuit over bricking the streaming device

The studies, by researchers at MIT, Ben-Gurion University, Cambridge and Northeastern, were independently conducted but complement each other well.

Misinformation works, and a handful of social ‘supersharers’ sent 80% of it in 2020

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Okay, okay…

Tesla shareholder sweepstakes and EV layoffs hit Lucid and Fisker