This project was conducted for an E-commerce platform in the fashion industry. The objective was to evaluate the impact of adding 360-degree product videos on product pages to assess whether this feature increases conversion rates and revenue. The platform operates in a highly competitive industry, employing a customer-centric business model with millions of active users.
A/B testing was employed to compare the performance of a product page with the 360-degree video feature against a standard page with static images, with the goal of identifying if the new feature leads to a measurable increase in conversion rates and overall revenue.
Key performance indicators (KPIs) included user interaction, conversion rate, and revenue generation.
The 360-degree product video feature had a significant positive impact on user engagement and revenue generation:
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Conversion Rates: The treatment group had a 16.24% conversion rate, significantly higher than the control group’s 9.85% conversion rate.
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Revenue: The treatment group saw a 2.87% increase in ARPU compared to the control group.
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User Engagement: The 360-degree videos led to a 64.77% increase in user interaction, indicating a substantial improvement in engagement.
The Python Codes used to inspect and determined whether observed differences were statistically significant using Chi-square test χ² of Independences can be found here.
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Conversion rates in the treatment group were 16.24%, compared to 9.85% in the control group, a significant improvement.
- User engagement, measured by session duration, increased by 64.77% for the treatment group, indicating that 360-degree videos retain user attention longer.
- The treatment group showed a 2.87% rise in ARPU, indicating that users exposed to 360-degree videos were more likely to purchase higher-value items.
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A chi-square test resulted in a p-value of 1.2051806921819425e-197, confirming a statistically significant difference between the control and treatment groups.
Visualization: Mosaic Plot of Chi-square Test, further supporting the observed impact on conversion rates.
Based on the insights, the following recommendations are suggested:
- Full Rollout of 360-Degree Videos: Given the clear improvement in user engagement and revenue, the 360-degree video feature should be fully deployed across all product categories, prioritizing high-value items.
- Continuous Testing: Continue A/B testing with additional product types (such as shoes or bags) to fine-tune the impact.
- Cross-Device Optimization: Ensure the feature is optimized for mobile users to maximize engagement, as interaction rates were notably higher on desktops during the test.
- Users in both control and treatment groups were randomly assigned, ensuring no bias in the selection process.
- The test was conducted over a limited timeframe (for January 2024); longer-term trends may differ.