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Jan 18, 2019 15:43:57

A/B Testing the Coffee Shop (pt. 2)

by @coreyrab PATRON | 345 words | 🐣 | 46💌

Corey Rabazinski

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Yesterday I wrote about a product idea that would allow small shop owners to quickly create A/B tests to improve the efficiency of their restaurants, coffee shops or retail stores. I wanted to detail out how it could work. 

Since Square has over 2 million active sellers on their platform, it would make sense to build the tool around this ecosystem. The majority of these users fall into the small business category and tend to be early adopters. That makes me think these types of users would be more interested in marketing product like this than older mom and pop shops that don't prioritize technology. 

On to how the software would work. To run a test, a user would choose one of two options:

The first would be a storewide test. Meaning, everyone that visited the store over a given period of time would get the experiment. Then after X number of days (most likely one week), the tool would compare sales data to previous periods and highlight changes. 

This would be great for testing outdoor signage, new menu items, check out upsells and more. There are some factors that it couldn't control and wouldn't be as 'pure' as an A/B test on the web, but it would nonetheless be valuable. 

The second type of test would try to fix some of the concerns by assigning 'test' vs 'control' variables to certain guests' purchases. For instance, if a restaurant was testing two menus on the same day, they would assign 'test' to a check that got the new menu and 'control to checks that didn't. 

From there, they could directly compare things like average order amount, drink orders, etc that would help them decided which menu is better for the guest and/or more profitable. However, with more moving parts this option is more prone to error and would require more training time with employees. 

I think there's actually a real business here and could be useful to many types of businesses. More to come, I hope. 

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