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Checkout A/B testing definition
Checkout A/B testing — also known as split testing and bucket testing — is a method of determining which version of the checkout page resonates more with the target audience and earns you more conversions.
A/B testing helps you understand consumer preferences in a data-driven way and validate the assumptions before making important business decisions. Your web visitors are shown two or more versions at the same time, which helps you check which checkout configuration fares better with the expectations and pain points of your consumers.
What can checkout page elements can you experiment with?
- Guest checkout vs. login;
- Checkout process;
- Call to action (CTA);
- Upsell offers;
- Free shipping threshold;
- Address forms;
- Delivery pricing;
- Shipping methods;
- Payment methods;
- And more.
Here's a practical example of how your e-commerce management team can leverage checkout A/B testing to increase customer satisfaction and bring sustainable business growth, whether you do so with a conversion rate optimization (CRO) agency or invest in the right software to experiment in-house.
Delivery checkout A/B testing example — Kronans Apotek
Kronans Apotek has over 320 pharmacies throughout Sweden — from Skåne in the south to Lapland in the north — with quick e-commerce deliveries all across the country.
Together with Conversionista!, the no. 1 consultancy for growth and experimentation, Kronans Apotek identified three business challenges in relation to the delivery pricing strategy and sustainability:
- Low order value purchases were found to affect the profit margins;
- Product revenue margins weren't enough to cover the costs of deliveries;
- Online shoppers faced little incentive to choose greener delivery options.
What's next? Conversionista! created a set of hypotheses and started experimenting with the built-in A/B testing functionality of Ingrid Delivery Checkout. They replaced the pre-selected free delivery option with a greener delivery method, presented at the top of the delivery checkout. Then, they explored five — A/B/C/D/E — delivery cost combinations to identify which price would give the best conversion outcome.
Pricing experimentation paid off. Kronans Apotek minimized low value orders that had a negative impact on profit margins and helped their customers make more sustainable delivery decisions.
Despite the 14% reduction in conversion rate — which in fact eliminated low-margin orders — Kronans Apotek saw a 25% increase in greener delivery option, 11% net margin revenue boost, and a 2% increase in total revenue.
"We've been really good at optimizing the delivery experience from checkout to when the customer gets their products. We now also have phenomenal tools to reliably control the customer offer at all times based on our business goals."