3 March 2010 2 Comments

Split Testing with a Genetic Algorithm

I’ve got some interesting data following the ShoeMoney System launch that I want to share.

This time around I used genetify to do multi-variate testing with an optimizng algorithm.  Let me show you why this is important.

Let’s say we got 50,000 unique visitors to our landing page.

3.0% conversion rate

5.0% conversion rate

So you say, great, orange converted better. So what? Everyone knows orange buttons convert better. Well you’re right, but we also tested some much more interesting things that I’m not willing to share. But, let me show you something more important.

Assume we had 50,000 unique visitors, with a $200 sale price.

50,000 * 3% = 1500 = $300,000
50,000 * 5% = 2500 = $500,000

If we had simply 50/50 split tested to SEE which result was better:

25,000 * 3% + 25,000 * 5% = $150,000 + $250,000 = $400,000

But using a genetic algorithm that optimized in real-time for the best conversion rate:

10,000 * 3% + 40,000 * 5% = $60,000 + $400,000 = $460,000

Because our algorithm optimized itself for the best conversion, we made an extra 15% in revenue.

The coolest thing about MVT with a genetic algorithm is that it will find combinations that work the best that you would never have dreamed of.

If you aren’t using the tools available, you are leaving money on the table.

If you like what’s here, please follow me on twitter here.

2 Responses to “Split Testing with a Genetic Algorithm”

  1. jtGraphic 3 March 2010 at 12:41 pm #

    Wow, I’m definitely going to try that out. I can’t argue with the price tag either ;D

  2. michael webster 3 March 2010 at 10:48 pm #

    Uh, yeah it is called zero sum game theory. Mixed solutions.
    Invented 50 years ago.