What metrics measure A/B testing in e-commerce promotion?

Question

Accepted Answer

A/B testing in e-commerce promotion relies on several key metrics to accurately measure the effectiveness of different variants. Primarily, Conversion Rate is critical, tracking the percentage of users who complete a desired action, such as making a purchase or signing up for a newsletter, directly attributable to the promotion. Alongside this, Average Order Value (AOV) provides insight into the revenue impact, indicating if one promotional variant encourages customers to spend more per transaction. Engagement metrics like Click-Through Rate (CTR) for promotional banners or emails, and the Add-to-Cart Rate, are essential for evaluating initial user interest and intent. Furthermore, Revenue Per User helps assess the overall financial performance across all visitors exposed to the promotion. Other valuable metrics include Bounce Rate, showing how many users leave the page without interacting, and sometimes Return on Ad Spend (ROAS) if the promotion involves paid campaigns. Selecting the most relevant metrics ensures that testing outcomes directly align with specific business objectives.