Skip to content

Latest commit

 

History

History
185 lines (119 loc) · 4.37 KB

File metadata and controls

185 lines (119 loc) · 4.37 KB

Product A/B Testing Analysis for Conversion Optimization

Overview

This project analyzes a simulated product experiment to determine whether a new checkout page improves conversion rate and revenue. Users were randomly assigned to either a control group (old checkout page) or a treatment group (new checkout page).

The analysis uses Python, SQL, and Power BI to evaluate experiment performance and provide a data-driven business recommendation.


Business Problem

A company introduced a new checkout page and ran an A/B experiment to test whether the new design improves key business metrics.

Goal: Evaluate whether the new checkout page increases:

  • Conversion Rate
  • Revenue per User
  • Overall Revenue

Dataset

A synthetic dataset containing 10,000 user sessions was generated to simulate real product experiment data.

Column Description
user_id Unique identifier for each user
experiment_group Control or Treatment group
session_date Timestamp of user session
clicks Number of clicks during session
time_spent Time spent on page
add_to_cart Indicator if product was added to cart
purchase Conversion indicator (0 or 1)
order_value Revenue generated from purchase

Tools & Technologies

  • Python
  • Pandas
  • NumPy
  • Matplotlib
  • Seaborn
  • SQL
  • Power BI

Project Workflow

1. Data Generation

A dataset of 10,000 user sessions was generated using Python to simulate real ecommerce behavior and experiment conditions.

2. Exploratory Data Analysis

Data quality checks were performed to validate:

  • dataset structure
  • data types
  • missing values

The dataset contained no missing values, allowing for direct analysis.

3. Conversion Rate Analysis

Conversion rates were calculated for both experiment groups.

Group Conversion Rate
Control 9.93%
Treatment 12.25%

The treatment group achieved a 2.32 percentage point improvement.


4. Revenue Analysis

Metric Control Treatment
Total Revenue 39,592 48,661
Revenue per User 7.90 9.76

The treatment group generated higher revenue per user, indicating positive business impact.


5. Statistical Hypothesis Testing

A two-sample t-test was conducted to determine whether the observed improvement was statistically significant.

Hypotheses

H0: The new checkout page does not improve conversion rate. H1: The new checkout page improves conversion rate.

Metric Value
T-statistic 3.69
P-value 0.00022

Since p-value < 0.05, the result is statistically significant.


Data Visualizations

Visualizations were created to communicate experiment performance:

  • Conversion Rate Comparison
  • Revenue Comparison
  • Purchase Distribution
  • Experiment Performance Over Time

SQL Analysis

SQL queries were used to calculate key experiment metrics directly from the database:

  • total users per group
  • total purchases
  • conversion rate
  • average order value
  • revenue per user
  • daily experiment performance

Dashboard

An interactive dashboard was built in Power BI to present experiment insights visually.

Dashboard features:

  • KPI summary (Users, Revenue, Conversion Rate)
  • Conversion comparison between groups
  • Revenue comparison
  • Experiment trend over time
  • Conversion funnel

Key Insights

  • Conversion rate increased from 9.93% to 12.25%.
  • Revenue per user increased from 7.90 to 9.76.
  • Statistical testing confirmed the improvement is significant (p = 0.00022).

Business Recommendation

The new checkout page significantly improves conversion rate and revenue per user.

Recommendation: Roll out the new checkout experience to all users.


Dashboard Preview


Skills Demonstrated

  • A/B testing analysis
  • Product analytics
  • SQL KPI analysis
  • Python data analysis
  • Statistical hypothesis testing
  • Data visualization
  • Dashboard development