Ronny Kohavi
Consultant & Educator @ Self-employed
Former Technical Fellow at Airbnb and Microsoft. World's leading A/B testing expert.
βA/B testing, covering measurement and analysis, pricing decisions, and product design.β
Career History
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Episodes (1)
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Quotable Clips
βBut the point about this is it's trivial to implement. So if you think about return on investment, we could get the data by having some engineers spend a couple of hours implementing it.β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βAnd that's exactly what happened. Somebody at Bing who kept seeing this in the backlog and said, "My God, we're spending too much time discussing it. I could just implement it." He did. He spent a cou...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βAnd a funny thing happened. We had an alarm. Big escalation, something is wrong with the revenue metric. Now this alarm fired several times in the past when there were real mistakes, where somebody wo...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βAnd this was just moving the second line to the first line. Now you then go and run a lot of experiments to understand what happened here. Is it the fact that the title line has a bigger font, sometim...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βAnd this is what usually happens. We have a breakthrough. You start to understand more about, what can we do? And there suddenly a shift towards, "Okay, what are other things we could do that would al...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βBut to me, this was an example of a tiny change that was the best revenue generating idea in Bing's history, and we didn't rate it properly. Nobody gave this the priority that in hindsight, it deserve...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βYeah. So again, this is a topic that's near and dear to my heart. Everybody wants these amazing results, and I show them in chapter one in my book, multiple of these small efforts, huge gain.β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βAnd in fact, again, there's another number I'm allowed to say. Of these experiments, 92% failed to improve the metric that we were trying to move. So only 8% of our ideas actually were successful at m...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βYou may iterate and pivot again. And ultimately, if you do two, or three, or four pivots or bug fixes, you may get to a successful launch. But those numbers of 80 to 92% failure rate are of experiment...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βVery humbling. I know that every group that starts to run experiments, they always start off by thinking that somehow, they're different. And their success rate's going to be much, much higher, and th...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βI can give you two resources. One of them is a paper that we wrote called Rules of Thumb, and what we tried to do at that time at Microsoft was to just look at thousands of experiments that run and ex...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)
βBut there's another more accurate, I would say, resource that's useful that I recommend to people. And it's a site called goodui.org, and goodui.org is exactly the site that tries to do what you're sa...β
The ultimate guide to A/B testing | Ronny Kohavi (Airbnb, Microsoft, Amazon)