Product Experimentation: What It Is and Why It Matters

Upsilon
2 min readMay 30, 2024

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How do you run product experiments effectively? And what can they help you learn about the product? Keep reading for the types, tips, tools, and product experimentation process.

Imagine boosting your profits by up to 95% just by increasing customer retention by 5%. Sounds incredible, right? Focusing on retaining customers through continuous product refinement can transform your product from a good to an essential one. How do you achieve this? Through systematic product experimentation.

What Is Product Experimentation? 🧪

Product experimentation is the process of testing different features to see how they impact user behavior and business outcomes. It’s a structured process involving A/B tests, usability tests, multivariate testing, focus groups, user interviews, and other methods.

This approach turns every adjustment into a data-driven decision, ensuring that even if your hypothesis doesn’t pan out, you still gain valuable insights.

When Should You Conduct Product Experiments? 🤔

Frankly, product experiments are valuable at all stages of development. Key scenarios include:

  1. Hypothesis testing: validate assumptions about features or user behavior scientifically
  2. New feature rollouts: test new features with a small group before a full launch
  3. User behavior changes: adapt to shifts in user behavior due to trends or seasonality
  4. Optimizing existing features: improve underperforming features through iterative changes
  5. Personalization efforts: use A/B tests to refine personalized content
  6. Pricing strategies: experiment with different pricing models to find what resonates best
  7. Onboarding and retention: optimize onboarding flows to engage new users.

All this helps adapt products for existing and new user segments through targeted experiments.

Types of Product Experiments 👩🏻‍🔬🔬

Here’s a rundown of common experimentation methods and their uses:

  • A/B testing (compare two versions of a feature to see which performs better)
  • Usability testing (observe how users interact with your product to ensure ease of use)
  • Multivariate testing (test multiple variables simultaneously to find the best combination)
  • Fake door testing (gauge interest in a new feature before fully developing it)
  • Tree testing (evaluate the intuitiveness of your product’s navigation)
  • User interviews (gather qualitative insights from one-on-one conversations)
  • Beta testing (release a nearly finished feature to a select group for final feedback)
  • Click tracking (analyze user clicks to understand behavior)
  • Funnel testing (optimize each step of the user journey to boost conversions)

Need more insights on the topic? Keep reading to learn the “hows” and find some tips and tricks ⤵

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Upsilon

Digital product studio. We help early-stage startups (<$100K) and scaleups ($1M+) grow faster by creating products that drive results.