What is Multivariate Testing? When And How to use MVT?

Multivariate testing in marketing is a statistical testing technique that allows marketers to simultaneously test multiple variables in a single experiment to determine which combination of factors produces the best results. In multivariate testing, different combinations of variables, such as different headlines, images, and calls to action, are tested simultaneously to see which combination produces the highest conversion rates, click-through rates, or other key performance indicators (KPIs).

By testing multiple variables at once, marketers can determine which specific combination of elements will have the greatest impact on their target audience and make data-driven decisions to optimize their campaigns. Multivariate testing is a powerful tool for improving the effectiveness of marketing campaigns and achieving better ROI.

Multivariate testing is important in marketing for several reasons:

1. Improving Conversion Rates: Multivariate testing helps marketers identify the best combination of variables that can improve conversion rates. This means that marketers can optimize their marketing campaigns and improve their chances of achieving their goals.
2. Better Understanding of Audience: Multivariate testing provides marketers with a better understanding of their target audience. By testing different variables, marketers can learn what resonates with their audience and make informed decisions about future campaigns.
3. Data-Driven Decisions: Multivariate testing is a data-driven approach to marketing that allows marketers to make informed decisions based on real-world results. By relying on data rather than assumptions or guesses, marketers can increase the accuracy and effectiveness of their campaigns.
4. Cost-Effective: Multivariate testing is a cost-effective way to test multiple variables at once. Rather than running separate tests for each variable, marketers can test multiple variables simultaneously, reducing the overall cost and time required to conduct tests.
5. Competitive Advantage: Multivariate testing gives marketers a competitive advantage by allowing them to optimize their campaigns and stay ahead of their competitors. By constantly testing and improving their campaigns, marketers can stay up-to-date with the latest trends and best practices, and improve their chances of success.

Multivariate testing is an essential tool for marketers looking to optimize their campaigns and achieve better results. It helps them make data-driven decisions, understand their audience, and stay ahead of their competitors.

Here is an example of multivariate testing in marketing:

Let's say a company wants to increase the conversion rate on its website's sign-up page. They decide to run a multivariate test to see which combination of variables will result in the highest conversion rate.

They test three variables: the headline, the call-to-action button color, and the image on the page. They create several variations of each variable, resulting in the following combinations:

• Headline A, blue call-to-action button, image 1
• Headline A, red call-to-action button, image 1
• Headline A, green call-to-action button, image 1
• Headline A, blue call-to-action button, image 2
• Headline A, red call-to-action button, image 2
• Headline A, green call-to-action button, image 2
• Headline B, blue call-to-action button, image 1
• Headline B, red call-to-action button, image 1
• Headline B, green call-to-action button, image 1
• Headline B, blue call-to-action button, image 2
• Headline B, red call-to-action button, image 2
• Headline B, green call-to-action button, image 2

They then randomly show each combination to different visitors to their website and track which combination resulted in the highest number of sign-ups.

After running the test for a set amount of time, they analyze the data and determine that the combination of Headline A, green call-to-action button, and image 1 resulted in the highest conversion rate. They then make this combination the default on their website, resulting in an increased conversion rate and a more effective sign-up page.