Split Testing #2 – The Economics

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Split TestingLet’s say you’re running an online campaign to get people to signup to download a trial of your new software product. The signup/download is the ‘conversion’. Let’s say you spend $10,000 to get 10,000 people to the site (e.g. PPC a dollar a click) and that your site converts at 1% – that comes out at 100 conversions. That’s $100 a conversion (hmm… must be a chunky product!). If you use testing to improve the conversion rate by just 0.5% then you’ll get 150 conversions, bringing the PPConversion down to just $66-ish.

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