A/B Testing is a type of randomised experiment with two variants – A or B.

In tech startup situations, A/B testing commonly refers to web design testing to identify changes that increase or maximise user interest.

For example, if you have an online shop, what colour should your “shopping bag” button be?

To find out, conduct an A/B test. Over a two day period, have half your customers view one or the other of:

  • A: green “shopping bag” button
  • B: red “shopping bag” button

Then measure which performs better.

The startup which performs the most number of tests in the most disciplined and systemic manner will be the one that outcompetes its peers.