As financial marketers, we’re always searching for ways to improve ad performance. A/B testing, otherwise known as split testing, is a popular way to do so. Simply put, marketers test two versions of something — the time an email is sent, the color of a CTA button, a banner ad placement — and see which version has a more desirable consumer response.
Below we’ll share how your institution can improve your messaging performance through A/B testing.
How Does It Work?
For A/B testing, you’ll want to divide your audience into two groups. The control group receives the original version, and the variable group interacts with the new version. For example, you may want to test two styles of email subject lines for a new auto loan campaign. In the past, you’ve used a straightforward headline that includes a general promotion of the campaign, so this subject line will be used for your default control group.
To see if a personalization factor makes a difference, the recipients in your variable group will receive an email with their first name in the subject line. You then divide the recipient list in half and send both emails at the same time to see if one has a higher open rate.
There are numerous variables that can be assessed through A/B testing, and although you might want to test multiple factors at once, a best practice is only testing one at a time. This way, your team can make sure the results aren’t skewed by multiple variables and you can make a definite conclusion based on your findings.
Define Your Objectives
Setting realistic goals for A/B testing will establish your “why” and help you move forward with your findings. You may start with smaller and more concrete objectives, such as a lower bounce rate on a product webpage or an increased click-through rate on an email CTA.
Your institution’s long-term goals for A/B testing can be improved user experience, increased conversion rate, or lead generation. Once you’ve determined clear objectives, you can also look for successful campaigns or webpages that you’ve accomplished so you can establish a baseline goal in mind.
Put Your A/B Test Findings Into Action
A sure-fire way to gauge consumers’ opinions and improve their experience is through A/B testing. Once you’ve run your test, you get efficient results that are ready to move into action. With each careful test, you incrementally gain a better understanding of what attracts and engages consumers, and your FI can start making impactful changes to your email campaigns, website, and other marketing efforts.
In addition, A/B testing is a relatively inexpensive way to assess and improve your messaging, and the results will eliminate guesswork from your marketing plan. Testing is a powerful tool in the marketing world, and utilizing A/B testing can build a more tailored user experience that helps your FI make conclusive messaging decisions to increase engagement.
Learn what Prisma’s marketing automation software can do for your financial institution, and visit Prisma’s blog posts for more useful marketing tips and strategies.
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