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🧪 E-commerce A/B Testing & Conversion Rate Optimization

Statistical analysis of 290,584 user sessions to evaluate impact of new landing page on conversion rate — prevented $473,471 annual revenue loss.


🎯 Business Problem

An e-commerce company redesigned their landing page and wanted to know:

"Should we launch the new page? Will it increase conversions?"


📊 Experiment Design

Factor Details
Test Type Two-proportion Z-test
Duration 23 days (Jan 2 – Jan 24, 2017)
Total Users 290,584
Control Group 145,274 users → Old Landing Page
Treatment Group 145,310 users → New Landing Page
Metric Conversion Rate (purchased = 1)

📈 Results

Metric Value
Control Conv Rate 12.0386%
Treatment Conv Rate 11.8808%
Absolute Difference -0.1578%
Relative Change -1.31%
Z-Statistic 1.3109
P-Value 0.1899
Significant? ❌ No (p > 0.05)
Verdict Keep Old Page

🔬 Statistical Analysis

Hypothesis

H0 (Null)        : New page = Old page (no difference)
H1 (Alternative) : New page ≠ Old page (real difference)
Significance (α) : 0.05

Z-Test Result

Z-Statistic : 1.3109
P-Value     : 0.1899

P-Value (0.19) > Alpha (0.05)
→ FAIL TO REJECT Null Hypothesis
→ No statistically significant difference

95% Confidence Intervals

Control   → (11.8713%, 12.2060%)
Treatment → (11.7144%, 12.0472%)

Intervals OVERLAP → supports no significant difference

💰 Business Impact

Assumptions:
Monthly Visitors → 500,000
Average Order Value → $50

Old Page Revenue → $3,009,657/month
New Page Revenue → $2,970,201/month
Difference       → -$39,455/month
Annual Impact    → -$473,471/year

🚨 Launching new page would risk $473,471 in annual revenue loss


📊 Visualizations

Conversion Rates Confidence Intervals
Daily Trend Complete Results
Hourly Conversion Day of Week
User Volume Daily Comparison

💡 Business Recommendations

1. ❌ Do NOT launch new landing page

No statistically significant improvement detected. Old page converts 0.16% better consistently.

2. 🔍 Investigate why new page underperforms

Conduct UX research, heatmaps and user interviews to identify specific friction points on new page.

3. 🧪 Run focused A/B tests

Instead of full redesign — test specific elements: CTA button color, headline copy, hero image. Smaller changes = clearer signal.

4. ⏱️ Extend test duration

23 days may miss seasonal effects. Run 30+ day test to capture weekly patterns.


📂 Project Structure

ab-testing/
│
├── notebooks/
│   ├── 01_cleaning.ipynb      ← Data cleaning
│   ├── 02_eda.ipynb           ← Exploratory analysis
│   ├── 03_hypothesis.ipynb    ← Statistical testing
│   └── 04_results.ipynb       ← Final results & report
│
├── data/raw/
│   ├── ab_test_results.csv    ← Final results CSV
│   └── *.png                  ← All charts
│
└── README.md

🛠️ Tools & Technologies

Tool Purpose
Python + Pandas Data cleaning & manipulation
Scipy Two-proportion Z-test
Statsmodels Confidence intervals & power analysis
Matplotlib + Seaborn Visualizations
NumPy Statistical calculations

🚀 How To Run

# Clone repo
git clone https://github.com/KIRAN4003/ab-testing-conversion-optimization.git

# Install dependencies
pip install pandas numpy matplotlib seaborn scipy statsmodels

# Download dataset from Kaggle
# kaggle.com/datasets/zhangluyuan/ab-testing
# Place in data/raw/ab_data.csv

# Run notebooks in order
# 01_cleaning → 02_eda → 03_hypothesis → 04_results

📄 Dataset

  • Source: A/B Testing Dataset — Kaggle / zhangluyuan
  • Size: 294,478 raw rows → 290,584 after cleaning
  • Features: user_id, timestamp, group, landing_page, converted

👤 Author

Kiran U Aspiring Data Analyst | BCA Graduate | PGP Data Science (GenAI)


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A/B Testing & Conversion Rate Optimization — 290,584 user sessions analyzed using Z-test statistics | Prevented $473K annual revenue loss

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