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About

Experimentation Frameworks: A Full Guide With Examples

Learn how to create and implement a powerful experimentation framework to test new ideas, validate hypotheses, and achieve measurable results.

Ryan Lucht

Before joining Eppo, Ryan spent 6 years in the experimentation space consulting for companies like Clorox, Braintree, Yami, and DoorDash.

Running experiments may seem pretty simple. However, running statistically significant experiments, and making sure they have a real impact on your product strategy requires a much more rigorous and strategic approach.

That’s when working within a clear and easy-to-follow experimentation framework becomes so important. Now you might be wondering:

“How can I tell which framework will actually work for my specific product?”

This blog post aims to help you answer that question and navigate any challenges you might encounter.

We’ll cover:

A definition of an experimentation framework and its purpose
A rundown of an experimentation framework’s key components
Examples of product experimentation frameworks to help you choose
Reasons why you should be using an experimentation framework
Challenges and considerations you should keep in mind

Let’s begin.

What is an experimentation framework?

An experimentation framework is a structured and systematic approach to conducting experiments. It serves as a roadmap for testing new ideas, evaluating hypotheses, and ultimately making data-driven decisions.

This methodical process helps teams and organizations across industries, from product development to marketing, to approach experimentation with rigor and confidence.

At its core, an experimentation framework provides a consistent methodology for testing and learning.

It outlines a series of steps to follow, from defining clear goals and hypotheses to analyzing results and implementing changes based on those findings. This standardized process ensures that experiments are conducted thoroughly and that the resulting data is reliable.

Key components of an experimentation framework

Hypothesis generation

The foundation of any successful experiment lies in the generation of clear, testable hypotheses.

A hypothesis is an educated guess or prediction about the relationship between variables. In the context of experimentation, it's a statement about what you expect to happen if you make a specific change.

Strong hypotheses are rooted in observations, existing data, and clearly defined business goals. They're not just random ideas, but rather informed assumptions that you can put to the test.

Example hypothesis: Increasing the size of the call-to-action button on our landing page will lead to an increase in click-through rates.

This example hypothesis is clear, testable, and tied to a specific business goal (improving click-through rates). It provides a starting point for designing an experiment to validate the assumption.

Experiment design

With a clear hypothesis in hand, the next critical step is experiment design. This phase involves meticulously planning the structure of your experiment to ensure you obtain reliable and actionable results.

Fundamental aspects of experiment design

Control and treatment groups: You'll divide your audience into two groups. The control group experiences the existing version of your product or feature. The treatment group is exposed to the modified version you’re testing.
Variables: Identify the specific element(s) you'll be changing. In our previous example, the variable would be the size of the call-to-action button.
Success metrics: Determine the key performance indicators (KPIs) you'll use to gauge the impact of your changes. These should align with your hypothesis and overall goals.

A classic experiment design is the A/B test. Imagine you want to test the impact of a new website design. In this scenario:

Control group: 50% of your website visitors see the current (original) design.
Treatment group: The other 50% see the new design.
Variable: The overall website design.
Success metrics: You might track metrics like bounce rate, time on page, and conversions to see if the new design performs better.

Sample selection

In experimentation, it's rarely feasible to involve your entire user base or audience. This is where sample selection comes into play. It's the process of determining the right number of participants (sample size) and how to choose them (selection criteria).

The goal is to make sure your sample is both statistically valid and representative of the larger population you're interested in.

Sample selection is important because it provides statistical validity. This means the size of your sample directly impacts the reliability of your experiment results. A larger sample generally leads to more statistically significant results, meaning you can be more confident in your findings.

Representativeness is also key, as your sample should mirror the characteristics of your target audience. If it doesn't, your results might not apply to the broader group you're trying to understand.

Example: Random sampling

One common way to guarantee a representative sample is through random sampling. This method involves selecting participants randomly, giving every member of your target audience an equal chance of being included in the experiment.

For instance, if you're testing a new feature on a website, you might use random sampling to select which visitors see the new feature and which see the original version. This helps you gather unbiased data on how the feature performs across diverse users.

Data collection

Once you’ve carefully designed your experiment and selected your sample, the next stage is data collection. This involves setting up the necessary mechanisms to accurately gather and store data throughout your experiment's duration.

Why data collection matters

Evidence-based insights: The data you amass during an experiment serves as the evidence you'll use to evaluate your hypotheses.
Measuring impact: Data collection allows you to quantify the impact of your changes. Did the larger call-to-action button lead to more clicks? Did the new website design increase conversions? The data holds the answers.
Understanding user behavior: By tracking how users interact with different versions of your product or feature, you gain valuable insights into their preferences and pain points.

Example: Analytics tools

Analytics tools are instrumental in data collection. They allow you to track user interactions on your website, app, or other digital platforms. For example, you might use tools like Google Analytics to monitor:

Click-through rates: How often users click on specific elements.
Time on page: How long users spend on different pages.
Conversion rates: How many users complete a desired action (e.g., purchase, signup).
Bounce rates: How many users leave your site after viewing only one page.

Analysis and interpretation

After collecting data throughout your experiment, it's time to analyze and interpret the results. This critical phase involves making sense of the numbers and drawing meaningful conclusions that can guide your decisions.

Core aspects of analysis and interpretation

Data analysis: Use statistical methods to examine the data collected during your experiment. This means comparing the performance of your control and treatment groups. Look for patterns and any statistically significant differences between them.
Statistical significance: Statistical significance measures the likelihood that the observed results are not due to random chance. A statistically significant result indicates a higher level of confidence that the changes you made actually had an impact.
Evaluating outcomes: Assess whether the experiment results support or refute your original hypothesis. Did the changes you tested lead to the desired outcomes? If not, what did you learn from the experiment?

Example: Conversion rate comparison

Let's revisit our earlier A/B testing example with the new website design. After the experiment, you'd analyze the data to compare the conversion rates between the control group and the treatment group.

If the new design resulted in a statistically significant increase in conversions, it suggests that the change was successful. Conversely, if there was no significant difference or a decrease in conversions, it indicates that the new design might not be an improvement.

Iteration and learning

Experimentation is a continuous cycle of learning and improvement. The insights gained from each experiment are invaluable for refining your strategies and making more informed decisions in the future.

Why iteration and learning are so important

Experiment refinement: No experiment is perfect. The analysis phase might reveal flaws in your design or unexpected results. Iteration allows you to fine-tune your approach based on what you've learned.
Optimization and experiment improvement: Even successful experiments can be improved upon. By iterating, you can identify opportunities to further enhance the impact of your changes and drive better outcomes.
Adaptability in the face of change: User behavior, market conditions, and technology are constantly evolving. Iteration helps you stay agile and adapt your strategies to keep pace with these changes.

Example: Implementation and further experimentation

Let's say your experiment with the larger call-to-action button resulted in a notable increase in click-through rates. In this case, you'd likely choose to implement the change permanently. However, your work doesn't stop there.

You could then ask yourself:

Can we make the button even more effective?
Does this change impact other metrics?
While click-through rates improved, did it affect overall conversions or user satisfaction?

By using the insights from your initial experiment, you can design new tests to answer these questions and continue refining your approach.

Examples of experimentation frameworks

A/B testing framework

As mentioned before, in this approach, you create two versions (A and B) of a webpage, feature, or other element you want to test. The two versions differ by only one variable, allowing you to isolate the impact of that specific change.

For instance, an e-commerce site wants to optimize its product pages. They create version “A” (the original product layout) and version “B” (a new layout with a different arrangement of product images).

They then run an A/B test, randomly assigning visitors to either version A or B. After a set period, they analyze the data to see which layout resulted in more sales.

Multivariate testing framework

Multivariate testing (MVT) takes a more exhaustive approach than A/B testing. It involves testing multiple variables simultaneously to understand not only their individual effects but also how they interact with each other.

For example, a tech company may want to improve its landing page. They might choose variables such as their headlines (three options highlighting different benefits), images (two different visuals showcasing their product), and CTAs (e.g., "Start Free Trial" vs. "Learn More").

By using a multivariate test framework, they can decide not only which headline, image, and CTA perform best individually, but also which combination of the three leads to the highest conversion rates.

Iterative testing

Iterative testing offers a more dynamic approach to experimentation. Unlike A/B or multivariate testing, where variations are tested at the same time, iterative testing unfolds in stages. This allows for changes based on the results of each step before moving on to the next.

Consider a marketing team planning an email campaign, for example. They could use iterative testing to improve the subject line like this:

Stage 1: Test a few different subject lines on a small segment of their email list.
Stage 2: Based on the open rates and click-through rates from the initial test, refine the subject lines or eliminate underperforming options.
Stage 3: Test the revised subject lines on a larger segment of the list.
Final rollout: Once a winning subject line emerges, use it for the full campaign.

Bandit algorithm framework

This method involves using an algorithm that’s continuously learning and adjusting in real time to maximize results. As it gathers data, it gradually shifts more traffic toward the variations that seem to be performing better.

Imagine an ad network displaying multiple ads for a particular product. A bandit algorithm could be used to optimize the ad placements in this fashion:

Initial display: All ads are shown to a portion of the audience to gather initial performance data.
Adaptive allocation: The algorithm starts to show the better-performing ads more frequently while still exploring the others.
Ongoing refinement: The algorithm continuously enhances the ad display based on real-time performance, maximizing clicks and conversions.

Why use a product experimentation framework?

By now it should be clearer to see that a product experimentation framework is a strategic tool that allows businesses to experiment with a blueprint guiding their testing efforts. Let's explore the key benefits of using these frameworks:

Making decisions based on data: Instead of relying on gut feelings, a framework ensures that decisions are grounded in solid evidence. By testing hypotheses and analyzing data, you can make educated choices with a higher probability of success.
Less risks: Rolling out major product changes without testing can be risky. A framework allows you to test new ideas on a smaller scale, minimizing the potential negative impact on your business if the change doesn't perform as expected.
Continuous improvement: Testing is an intrinsically iterative process. A framework allows you to learn from each experiment, whether it's a success or failure, and use those insights to improve your product.

Challenges of using an experimentation framework

While experimentation frameworks offer notable benefits, it’s not all sunshine and rainbows. You need to be aware of the potential challenges they present:

It’s resource intensive: Designing well-structured experiments, implementing them accurately, and analyzing the data can be demanding, especially for smaller teams or organizations with limited resources.
You need statistical validity: This means understanding concepts like sample size, statistical significance, and potential biases that could skew your results. It may require collaboration with data analysts or using advanced experimentation platforms.
Cultural adoption is a must: Embracing experimentation as a core practice within an organization can be a cultural shift. It requires fostering a mindset of curiosity and encouraging risk-taking at all levels.

Next steps

Now that you’ve learned about the different product experimentation frameworks out there, it’s time to talk about actually running those experiments.

This is where using Eppo becomes vital.

Eppo is a powerful experimentation and feature management platform that allows you to run experiments with the utmost level of rigor and precision.

Your journey with Eppo starts with a short demo. Once you’re registered, our warehouse-native platform connects with your data warehouses (Snowflake, Databricks, Redshift, BigQuery, etc.).

Then, you can use Eppo’s SDKs to instantly implement feature flagging and A/B testing.

Eppo simplifies the process of implementing and managing your experimentation framework. Here’s how:

Structured experimentation: Eppo helps you establish a clear structure for your experimentation efforts. This includes defining hypotheses, selecting appropriate metrics, and aligning experiments with your overall business objectives.
Easier experiment design: The platform provides tools and features that facilitate the design and execution of your experiments, from creating different testing environments to implementing feature flags for controlled rollouts.
Real-time monitoring and insights: Eppo's robust data collection and analysis capabilities allow you to monitor experiment results in real time.
Advanced analytics: With its sophisticated statistical engine and slice-and-dice functionality, Eppo enables you to delve deep into your data and uncover valuable insights that might not be apparent at first glance.

Book a Demo and Explore Eppo.