A/A test? No typo, it really exists!

Everybody knows A/B test, as it became essential tool for exploring new user preferences or patterns and also a way to systemically innovate through chain of (managed) experiments. But A/A test, seriously? Yes, this is not typo (after all on QWERTY keyboard A and B are quite far-away from each other 😉 ) and there are good reasons for this test to exist (and being used). But let’s get to it step-by-step …

 

Ups, it happened again …

Imagine you had a glitch in system that led to sudden (maybe even undesired) A/B test of the customer experience. Some people received the service as expected, while others have been cut off from this element of experience. You do a post-mortem and you see that this positively influenced their shopping behavior. However, as this was a complicated glitch, you can’t easily replicate the test to find out if actually switching off the experience element completely would be a better long-term strategy. I mean, it was still valid A/B test, but as the assignment to groups was not controlled you are not sure if the up-tick in B-group shopping behavior can be attributed to the change in experience or just skewed (not random) assignment of user sample by glitch itself. How would you tell?

 

 

Wow, really?

Your existing A/B testing platform had fallen behind the curve and thus you decided to shop for alternative solution. After implementing the new tool, all of the sudden some of your experiments start to show significantly larger gaps between test and control group. Some of the gains are almost too good to be true. But you already cancelled your previous software subscription, so you cannot replicate the same experiment on previous platform any more. How would you find out if all of the sudden your campaigns started to work better or just new tool is “wired differently” to run the tests?

 

There is a way

As you can read above, both of the depicted scenarios are stemming from real life of online marketers. I bet you might have experienced some variation of those firsthand.  But luckily, for both there is solution, you don’t have to throw away the data and start all over the again. And, yes, the solution is indeed our mysterious A/A test. So how does it really work?

 

A and A (again) , seriously?

The original idea of A/B test is quite simple: If mutually comparable groups of users are subjected to different treatment (and this treatment is the only substantial difference they have), if any of the groups behaves significantly differently as a result of the test, then there is high probability (yes, don’t forget it is still probabilistic finding) that these change in experience and change in behavior are linked to each other. The major vulnerability of this experiment, unfortunately, is the assumption that user samples A and B are really comparable. So what happens if we already have result of A/B testing but we have no proof/info how correctly the selection into groups happened?

Well, luckily this logic of the experimenting works also the other way around. If we have two groups undergoing identical treatment and resulting in also same behavior, we have high probability (yes, probabilistic here again), that the groups have had similar user distribution as well.

Therefore, if we have two groups and want to find out if they are some-what similar in user mix, we can subject them to same treatment and watch if they receive significantly similar result on high confidence level. And that exactly is the essence of our A/A test. Here the A+A signifies not that same group was used twice, but that different groups (in original experience A- and B-group) are subjected to same treatment in second experiment. This way we can try to “learn something about similarity’ of the groups ex post, already after completed A/B test.

 

Using A/A test is thus easy way to double check (or compensate for lack of) initial user assignment. Please note that while A/B test uses sample similarity to point out behavior difference, it’s A/A cousin uses (absence of) behavior difference to point out samples similarity. That also means that A/A does not:

  • say anything (additional) about the strength of behavioral difference from original A/B test, nor it serves as any prove of it. (if the difference in final behavior between A/B groups was statistically insignificant, it remains so even after successful A/A test).
  • prove general similarity of original A and B groups in general. It signals just similarity for behavior(s) relevant for original A/B experiment.
  • generate any new insights about the users (which is often contested by opponents of A/A as waste of testing capacities).

 

The main value added of the A/A testing is that it is possible to run (almost) no matter what the original experiment was and is easy to set-up. After all, you just need to wire the groups to same branch of the process. Therefore, A/A test is a quick remedy to “unusual” set-ups/hick-ups in proper A/B testing.

Its simplicity, of course, comes with some controversy. Some practitioners argue against A/A tests as not being the most robust way to prove A/B groups similarity (heavy multinomial distribution comparisons are), being not fully possible to rerun (e.g., if original B-group condition altered long-term perception of service) as well as being opportunity (or real) costs of not running other experiments instead.

I am far from promoting A/A tests as silver bullet, evade it if any of the (above mentioned) counter-arguments are very true for your own situation. However, the mere A/A tests existence and its proper set-up should be part of your toolbox; May the situation turn it to be the cheapest (and quickest) way to heal the experiment (improper) set-up. Especially so, if you are to assess the results of A/B tests conducted by somebody else before.

CRM brainteasers or job interview tasks. Do you dare?

If you search the web or social media, you find plethora of math brainteasers. But if you want to put your grayish matter to test in CRM or Marketing there is not that many of riddles from these areas. You sit candidate for marketing position interview and lack some juicy case study to scan his/her real CRM abilities? There is a hope for you, now.

In past, you might have come across some of the beloved, older round of CRM riddles (I. round,  II. round or III. round , sorry some only in Slovak) After bit of s short break, here we are with 4th round of the cunning CRM mind/benders. Do you dare to get them correct ?

 


4th Round Of CRM Riddles

4.1 Drier offer

You really had a weird day today. You are manager of CRM team of larger, national electricity utility for households with more than 800.000 retail clients. The VP of Marketing&Sales stopped by your table in the afternoon and passionately talked you through details of new cooperation contract with major electronic appliances chain, just signed by the board of your company. The pilot project of this new cooperation program will be aimed at offering well-discounted cloth drier to your customer base. You are asked for just a little help: to identify a proper target group for this offer. As you company has digital electricity usage meter installed for each customer, you have a 24 month-long history of electricity consumption in hourly readings from each of the customer. On top of that you have a customer profile with basic client data from contract signed between your company and the end/customer. How would you select the clients for mentioned drier offer ?

 

4.2 Vitamins at the petrol station

You were fed/up with bank analyst job, so you switched a job and now for more than 2 months you already as data analyst in large chain of petrol stations. Your company, operating aloyalty card program, has recently decided to extend the range of assortment offered at their petrol outlets with additional line of unregulated Vitamin products. You are asked to narrow down the selection of clients that should receive (fancy and thus costly) Vitamins introducing direct mail form the central marketing team.  You are still under probabtion period, so you don’t want to spoil this and let your skills shine to superiors. How would you select the customers to be addressed?

 

4.3 Opening own chain of BIO restaurants

Obviously, more than 9 years in CRM team of the national Telco operator has allowed for loads of bizarre situations. But this made certainly your heart skip a beat. Top management of your Telco company has YESed to launch of new, own chain of BIO FOOD restaurants. You think they must be nuts, but after all its their business to burn the company cash. Or is it? Well would be fine, if only you haven’t been asked to generate list of existing clients that are highly probable to become clients of the soon-to-be restaurant chain. You have extracted all data and behavior insights (from Telco) that you have at disposal on clients had ever passed buy selected locations. How would you pick the correct target group ?

 

 

doprava_mhd4.4 Interesting travelers’ behavior

For years you have pulled levers of central insight team for public transport operator in large 1.000.000+ European city (think Prague for instance). Your employer has issued local chip-enabled traveller’s ID that stores client identity and his travel season ticket. All of the vehicles operated by your company are fitted with strong chip readers located at any door of the vehicle. Thus, all clients entering and leaving vehicle are logged into your database. For each of the passenger you have at least 2 years of their travel history and these chip/running clients account for more than 85% of all transport company revenue. Propose 20 cunning client behavior parameters that you can distill from the data at your hand. How creative will you be ?

 

The solutions of the riddles will be published at TheMighyData blog in few days time. If you don’t want to miss their release, become a free-to-be member of TheMighyData community (who receive update on any new blog on this site).

 

CRM blogs: What to read in EN from this CRM blog?

Within more than 10 years, that I have been working on CRM, this topic morphed from marginal side stuff into multi-branch issue tree living its own expert life. Before creating THE MIGHTY DATA portal, I wrote articles and blogs for leading Slovak economic weekly TREND. To help you to orientate in what my blog has covered in CRM area in given period, below you can find list of those previous blogs before setting-up THE MIGHTY DATA portal:

Modern CRM trends

Central Europe might be business- and CRM-wise intensive, but still, it makes great sense to seek inspiration in other markets as well. Following group of blogs depict some of the inspirational modern trends in CRM and data usage. Blogs include a few reports from top-notch CRM conferences, I had participated in:

One-to-one marketing is dead! Here comes ONE-TO-ZERO marketing!!!

Already planning for 2016? Get inspired by largest CRM insight event – Part I.

Why are we all so sleepy lately ? – II. part      [DialogKonferansen 2015]

Data underdogs: what they are and how to spot them?

“Ryanair”-like database test: Big Data layers (not only) in Slovakia

What can we learn from Nordic marketers?    [Dialogkonferansen 2014]

 

Predicting client behavior

Most of us are used to predicting the basic propensities (to buy, to churn, …). How about some more exotic ones? Read-on for some of the less common examples of client behavior prediction:

How to detect “Greek“ tendencies among your clients?

 

***************   Do you enjoy what you read here? Would you like to get notified on next content from THE MIGHTY DATA? Become FREE member of MIGHTY DATA community.  ******************

 

CRM in various industries

Different industry, different needs. Though there are some overarching principles of CRM, there is plenty of stuff that has been intensified more in some business segment or the other. Following blogs try illustrate the CRM hypes of individual business industries:

SMS from operator “We are sorry your relationship has crashed.” Like what?!

What can supermarket tell about your health status?

ATM, E-banking, Smart-banking. What’s next?

Going for a holiday? Who earns more on you: Bank, Insurer or Telco company?

Would you be good match for CRM job?

There is no shortage of math riddles on web or within social media. However, if you wish to put your brain to text in marketing or CRM riddles, you don’t find that much of them. Are you hiring a CRM person and you look for real-world puzzle to test his/her CRM skills within the interview? Here are few of those:

Marketing riddles (and solutions to them)

(there are 3 more rounds of similar riddles published in Slovak, which are just in progress to get translated to EN, so expect more, soon)

 

***************   Do you enjoy what you read here? Would you like to get notified on next content from THE MIGHTY DATA? Become FREE member of MIGHTY DATA community.  ******************

 

Do you miss any specific topic? Propose your own topic, on which you desire to red more about.

No one can be possibly expert on on of all the CRM areas. Thus I am proud to listen to those who have something reasonable in CRM arena. Feel free to read through views of other CEE CRM experts.