Online Controlled Experiments for Personalised e-Commerce Strategies: Design, Challenges, and Pitfalls

Online Controlled Experiments (OCEs) are the gold standard in evaluating the effectiveness of changes to websites. An important type of OCE evaluates different personalization strategies, which present challenges in low test power and lack of full control in group assignment. We argue that getting the right experiment setup -- the allocation of users to treatment/analysis groups -- should take precedence of post-hoc variance reduction techniques in order to enable the scaling...

The rise of internet-based services and products in the late 1990's brought about an unprecedented opportunity for online businesses to engage in large scale data-driven decision making. Over the past two decades, organizations such as Airbnb, Alibaba, Amazon, Baidu, Booking, Alphabet's Google, LinkedIn, Lyft, Meta's Facebook, Microsoft, Netflix, Twitter, Uber, and Yandex have invested tremendous resources in online controlled experiments (OCEs) to assess the impact of innova...

Technology companies are increasingly using randomized controlled trials (RCTs) as part of their development process. Despite having fine control over engineering systems and data instrumentation, these RCTs can still be imperfectly executed. In fact, online experimentation suffers from many of the same biases seen in biomedical RCTs including opt-in and user activity bias, selection bias, non-compliance with the treatment, and more generally, challenges in the ability to tes...

Online Controlled Experiments (OCE) are the gold standard to measure impact and guide decisions for digital products and services. Despite many methodological advances in this area, the scarcity of public datasets and the lack of a systematic review and categorization hinder its development. We present the first survey and taxonomy for OCE datasets, which highlight the lack of a public dataset to support the design and running of experiments with adaptive stopping, an increas...

Digital technology organizations routinely use online experiments (e.g. A/B tests) to guide their product and business decisions. In e-commerce, we often measure changes to transaction- or item-based business metrics such as Average Basket Value (ABV), Average Basket Size (ABS), and Average Selling Price (ASP); yet it remains a common pitfall to ignore the dependency between the value/size of transactions/items during experiment design and analysis. We present empirical evide...

Online experimentation, also known as A/B testing, is the gold standard for measuring product impacts and making business decisions in the tech industry. The validity and utility of experiments, however, hinge on unbiasedness and sufficient power. In two-sided online marketplaces, both requirements are called into question. The Bernoulli randomized experiments are biased because treatment units interfere with control units through market competition and violate the "stable un...

Adaptive experimental design (AED) methods are increasingly being used in industry as a tool to boost testing throughput or reduce experimentation cost relative to traditional A/B/N testing methods. However, the behavior and guarantees of such methods are not well-understood beyond idealized stationary settings. This paper shares lessons learned regarding the challenges of naively using AED systems in industrial settings where non-stationarity is prevalent, while also providi...

Companies offering web services routinely run randomized online experiments to estimate the causal impact associated with the adoption of new features and policies on key performance metrics of interest. These experiments are used to estimate a variety of effects: the increase in click rate due to the repositioning of a banner, the impact on subscription rate as a consequence of a discount or special offer, etc. In these settings, even effects whose sizes are very small can h...

While there exists a large amount of literature on the general challenges of and best practices for trustworthy online A/B testing, there are limited studies on sample size estimation, which plays a crucial role in trustworthy and efficient A/B testing that ensures the resulting inference has a sufficient power and type I error control. For example, when sample size is under-estimated, the statistical inference, even with the correct analysis methods, will not be able to dete...

Many organizations measure treatment effects via an experimentation platform to evaluate the casual effect of product variations prior to full-scale deployment. However, standard experimentation platforms do not perform optimally for end user populations that exhibit heterogeneous treatment effects (HTEs). Here we present a personalized experimentation framework, Personalized Experiments (PEX), which optimizes treatment group assignment at the user level via HTE modeling and ...