Does the feature work? Impact without an experiment
Report: the "Saved searches" feature3 months after launch
With itday-30 retention 63%The restday-30 retention 32%
Retention ×221,500 feature users out of 100,000
The report's conclusion: the feature doubles retention. Proposal: show it to everyone in a pop-up.
Reports like this get written after every launch. Does the feature really double retention? The course answers in three steps. First, with no formulas, we see why the usual feature numbers mislead: who uses the feature, what the share of people who tried it shows, what else changed that month. Then we learn to estimate impact without an A/B test: a staggered rollout, difference in differences, a threshold, matched groups, a long holdout. The third part covers cohorts, cannibalisation, totals and when to insist on an experiment. At the end comes an exam of six product reports and a verdict on this very "Saved searches" report.
≈ 1.5 hours, in 10–15 minute parts if you like; your progress is saved.
Already have a report on your feature? Can you trust this impact? A few questions about the launch give a list of risks and an estimation method.
Done 0 of 15 chaptersCatalogue puzzles solved: 0 of 5
The share of people still using the product after some time: day-30 retention of 40% means 40 of 100 new users are still there a month later.
Cohort
Everyone who arrived in one period, say signed up in March. Cohorts are compared with each other at the same age (chapter 11).
pp
A percentage point, the difference between two percentages: from 30% to 32% is +2 pp, or +7% of 30%.
DAU/MAU
How many of the month's users come on an ordinary day: 20% means a monthly user visits about 6 days out of 30 on average (chapter 3).
Adoption
How many users used the feature at least once. It shows how many people saw it, not whether it helped (chapter 2).
Primary metric and guardrails
One metric of value that decides, and a few guardrails that must not get worse: uninstalls, complaints, speed (chapter 3).
Holdout
A share of users deliberately left without the feature, so there is someone to compare with (chapter 10).
Natural experiment
A case where circumstances split people into groups almost as a test would: one country got the feature before another, a status starts at a threshold (chapters 6–8).
Part 1 · no formulas
Why feature numbers mislead
Five usual ways to show that a feature works, and why each of them can show success where there is none. Each chapter starts with a question: guess first, then check it on a live picture.
1
Those who use the feature stay twice as often
"Feature users retain twice as well. So the feature doubles retention?"
Nobody hands a feature out at random. Users find it and turn it on themselves, and those who already use the product a lot do so more often. So a comparison of "with the feature against the rest" compares people, not the feature.
The "Save search" button broke and saved nothing for a month, though it could be pressed as usual. A month later, how do those who pressed it retain compared with the rest?
The button is pressed more often by those who search a lot, and they rarely leave anyway. So even a button that does nothing "retains" almost twice as well. Check below.No, the opposite: those who pressed it retain noticeably better, almost twice as well. Active people press the button, and they rarely leave anyway. Check below.The button did nothing, but it was pressed mostly by active people, and they rarely leave anyway. So the gap is large, almost twofold. Check below.
Below are 10,000 users of three kinds: rare, occasional and frequent visitors. The button does nothing. The slider sets how much more often active users find it.
A button that does nothing
Pressed the button–
Did not press–
The "effect" in the report–
Within each kind, those who pressed and those who didn't retain the same: the button does nothing. The gap in the total row comes only from who pressed it. So the "retention ×2" in the report above says nothing about the feature on its own.
A comparison of "with the feature against without" is a correlation. Before crediting the gap to the feature, ask how these people differed before it.
The simplest check is to look at the same people before the launch: if the feature's users retained better back then too, the gap is not from it.
StoryFacebook compared 12 ad campaigns for which it had both a true experiment and the usual estimates. In one of them, those who saw the ad bought 5 times as often as those who didn't: an "effect" of +416%. The experiment on the same people gave +77%. Ads are seen more often by people who spend more time on Facebook and buy more on their own anyway.Source: Brett Gordon, Florian Zettelmeyer, Neha Bhargava, Dan Chapsky, "A Comparison of Approaches to Advertising Measurement", white paper, 2016; Marketing Science, 2019.
Deeper: how selecting people creates a link where there is none.
"41% of users tried the feature. Is that a success?"
The share of people who tried a feature is counted first: it grows fast and looks good on a slide. But one can try it out of curiosity, because of a pop-up, or by accident. Value shows only in who comes back to the feature.
The feature was quietly added to the menu, and within a week 9% of users tried it. Then a pop-up at login was added, and 41% tried it. How many people will be using the feature a month later?
The feature is really needed by only 6 people in 100. The pop-up shows it to everyone, and many try it out of curiosity, but those who stay are the ones who need it; a few more of them now find it. Check below.No, a few more: the pop-up helps those who need the feature find it. But there are only 6 such people in 100, so a month later about 5 in 100 use it instead of 3. Check below.A pop-up makes people try, not need. The feature is needed by only 6 people in 100, so a month later about 5 in 100 use it instead of 3. Check below.
The feature funnel: tried, came back, stayed
The pop-up lifts the share who tried from 9% to 41%, and the share still using it a month later from 3.2% to 5.1%. The first number grows fourfold, the second 1.6 times, and only the second speaks of value.
The share who tried measures how the feature was shown, not what it is. Compare it only across the same way of showing.
Look further down the funnel: how many came back in week two and how many use it a month later. Whether the feature changed the product's retention as a whole, these numbers don't tell either: that is part 2.
3
A metric that is easy to move
"DAU/MAU went from 20% to 30%. Do people get more from the product?"
The economist Charles Goodhart noticed that a figure people start to push on stops showing what it used to show. The anthropologist Marilyn Strathern put it shorter: when a measure becomes a target, it ceases to be a good measure. In a product the easiest things to move are counts of visits and minutes: DAU, sessions, time in the app.
A classifieds app added daily push reminders, and within a month DAU/MAU went from 20% to 30%. What does that say about the product's value to people?
A push brings a person into the app, and DAU grows even if they did nothing there. To talk about value you need a metric of what people get: here, contacts with sellers. Check below.It may be so, but DAU/MAU can't show it: a push brings a person into the app, and DAU grows even if they did nothing there. Another metric tells about value. Check below.DAU/MAU counts visits, and a push brings a person into the app even if they did nothing there. Nothing is known about value yet. Check below.
Levers that move metrics
Which metric should be primary for "Saved searches"?
Pushes lift DAU/MAU from 20% to 30% while contacts with sellers stay the same, and uninstalls grow. A real search improvement barely moves DAU and even cuts the minutes: people find what they need faster.
Before the launch, pick one primary metric that counts value for a person: a deal, a purchase, a task done per user. Keep the share who tried and the minutes as secondary.
Add two or three guardrails that must not get worse: uninstalls, push opt-outs, complaints, speed. A win in the primary metric with a failed guardrail is not a win.
StoryUntil 2012 YouTube recommended videos mainly by view counts, and creators learned to lure viewers with flashy thumbnails that people quickly left. On 15 March 2012 recommendations started counting watch time instead of views, and in October search did the same.Sources: "The 'terrifying' moment in 2012 when YouTube changed its entire philosophy", Business Insider, 2015; "YouTube Changes Its Search Ranking Algorithm To Focus On Engagement, Not Just Clicks", TechCrunch, 12 October 2012.
StoryAt Wells Fargo, staff had targets for selling products to existing customers. To hit them, staff opened accounts without the customers' knowledge: by the bank's own count, about 1.5 million deposit accounts and 565,000 credit cards. In September 2016 regulators fined the bank $185 million.Source: Consumer Financial Protection Bureau, press release, 8 September 2016.
4
Before and after the launch
"We launched the feature on 1 September, and September's conversion is 12% above August's. There's the effect."
A "before and after" comparison is simple and therefore the most common. But in the same month many things change: the season, advertising, prices, other teams' releases. All of it lands in the feature's "effect".
September's conversion is 12% above August's. Last year it also grew from August to September, by 6%. And this September an ad campaign ran too. How much of these 12% did the feature give?
The season takes about 6%, and the campaign gave part of the rest. How much is left for the feature, a plain "before and after" can't tell. Break these 12% down below.It may be so, but these numbers can't show it: the season takes about 6%, and how much of the rest the campaign gave is unknown. Break these 12% down below.Last September shows that the season gives about 6%, and the campaign takes part of the rest. So the feature gets less than 6%, and exactly how much can't be seen. Break these 12% down below.
Two years of conversion and a September with the feature
this yearlast year
In this example the 12% are made of the season (+6%), the campaign (+3%), a new checkout from another team (+2%) and the feature itself (+1%). A "before and after" report merges them into one number.
Compare with the same period last year, not with the previous month: that shows the season.
Keep a shared calendar of changes: every team's releases, campaigns, prices, outages. Before crediting a metric's move to the feature, check what else happened that week.
Best of all is a group that lived without the feature in the same month: then the season and the campaign act on both groups alike (chapters 6–7).
"Retention fell to a one-year low, we rushed out a fix, and it recovered. The fix worked!"
Weekly metrics wander even with no changes at all: different people, weather, holidays. And fixes and new features are often launched exactly when the metric is at its worst. That is the trap of this chapter.
Weekly retention is usually about 40%. One week it fell to 36%, the lowest in a year. The team shipped a fix, and the next week it was 40% again. What follows about the fix?
The worst week of the year is mostly unlucky noise, and the next week is almost always closer to the usual 40%. To see the fix's share you need to compare with what would have happened without it. Check below on fixes that do nothing.These numbers can't show that. The worst week of the year is mostly unlucky noise, and the metric returns to the usual 40% by itself, so the recovery says nothing about the fix. Check below.The worst week of the year is mostly unlucky noise, and the metric returns to the usual 40% by itself. So the recovery says nothing about the fix. Check below on fixes that do nothing.
Below is the retention of a product where nothing changes: about 40% every week plus noise. The team ships a "fix" every time a week is the worst of the last half year. The fix does nothing.
Two years of fixes that do nothing
weekly retentiona fix week
Fixes shipped–
The fix week, on average–
The fix's "effect" in a week–
A fix that does nothing "adds" about 4 pp in a week on average: the worst week of a half year sits about 4 pp below normal, and the next week simply returns to it. The same happens with people taken into a programme after their worst month.
Compare with the normal level before the drop, not with the worst week.
If the fix is real, it should hold the metric above normal for weeks, not just bring it back. Better still, leave a small group without the fix (chapter 10).
What you can do nowYou know that the feature's users differed before it (1), that the share who tried measures exposure, not value (2), that DAU and minutes are easy to move without value (3), that "before and after" mixes the season, campaigns and others' releases (4), and that after the worst week a metric comes back by itself (5). All five traps share one cure: a group of people who lived without the feature at the same time. The second part is about where to find such a group when there was no A/B test.
Part 2 · a few numbers
How to estimate impact without an A/B test
An A/B test is the cleanest way, but often there wasn't one: the feature has already gone to everyone, or it can't be shown to only some people. Then you look for a group that lived without the feature at the same time and resembled those who had it. Five ways, from the most reliable to the weakest, made of subtraction and averages.
"Android got the feature in March, iOS only in May. Is that bad for the analysis?"
On the contrary, it is a gift. While iOS waits, it lives in the same season and under the same campaigns, but without the feature. And when the feature reaches it too, the effect can be seen a second time.
The feature reached Android in week 9 and iOS in week 18. What is the best way to estimate its effect in the first weeks on Android?
iOS over the same weeks shows what would have happened to Android without the feature: holidays, campaigns, the season. The difference of the changes is the effect. Check below."Before and after" on Android catches the holidays, comparing the platforms catches their old difference in level, and those who tried it bring the self-selection of chapter 1. The honest way is to compare Android's change with iOS's change over the same weeks. Check below.
Two platforms, two launches
AndroidiOSthe grey band is the holidays, weeks 10–12
Android: after minus before–weeks 9–12 against 5–8
iOS over the same weeks–without the feature
Difference of changes–
Second launch: iOS–weeks 18–21 against 14–17, minus Android
"Before and after" on Android gives about +4 pp because it catches the holidays. The difference of changes with iOS gives about +2 pp, the true effect in this model. The second launch on iOS shows the same +2 pp: when the effect repeats at every launch, it deserves much more trust.
If the feature rolls out gradually anyway, plan the waves as an experiment: write down the order of countries or platforms and the dates in advance, and count the metric for whole waves, not only for the feature's users.
Better to draw the order of the waves by lot. If the strongest country goes first, it may have been growing faster anyway.
StoryIn 1854 parts of London's streets were supplied by two water companies. Lambeth drew water from the Thames above the city, Southwark & Vauxhall below it, where the sewage flowed. Neighbouring houses got water from different companies without choosing. The physician John Snow counted cholera deaths: 315 per 10,000 houses for Southwark & Vauxhall and 37 for Lambeth.Source: John Snow, "On the Mode of Communication of Cholera", 2nd edition, 1855, table IX.
"In the country with the feature retention grew by 6 pp. But it also grew where there is no feature. So what is the effect?"
Chapter 6 already computed a difference in differences; now let us take it apart. You take the change in the group with the feature and subtract the change in the group without it over the same time. The second change is the season, campaigns and everything else that acted on both groups.
In Poland, which got the feature, retention grew from 30% to 36% over the quarter. In Czechia, still without it, from 28% to 32%. What is the feature's effect?
Poland grew by 6 pp, Czechia without the feature by 4. Those 4 pp would have happened in Poland too, so the feature gets 6 − 4 = 2 pp. But only if the countries moved in parallel before the launch. Check below.+6 is "before and after" in Poland, +4 is the gap between the countries after the launch, +8 is both mistakes at once. Czechia shows that 4 pp of growth would have happened without the feature, so the effect is 6 − 4 = 2 pp. Check below.
Two countries before and after the launch
Poland, with the feature from month 7Czechia, no feature
Poland: after minus before–
Poland minus Czechia after–
Difference in differences–
While the countries run in parallel before the launch, the difference in differences shows the true effect. If Poland grows faster even without the feature, its own growth lands in the "effect". You can see it before the launch: the lines drift apart.
Before computing, look at several months before the launch. If the lines run in parallel, the comparison deserves more trust; if they drift apart, look for another control group.
Pick a similar control: a country with a similar product and audience, the same platform, the same plans. Several control groups are better than one.
StoryOn 1 April 1992 New Jersey raised its minimum wage from $4.25 to $5.05 an hour, while neighbouring Pennsylvania did not. David Card and Alan Krueger surveyed 410 fast-food restaurants in both states before and after the rise. Employment in New Jersey did not fall relative to Pennsylvania, though theory predicted a fall. The conclusion is still disputed, but the approach became a classic, and in 2021 Card received the Nobel prize in economics.Source: David Card, Alan B. Krueger, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania", American Economic Review, 1994.
"Gold customers spend twice as much. Does gold status pay off?"
When a feature or a status starts at a threshold of points, orders or spend, a comparison of "with it against without" again compares different people, as in chapter 1. But right at the threshold a natural experiment appears: a customer with 995 points and one with 1,005 are almost the same, yet only the second has the status.
Gold status starts at 1,000 points. Gold customers spend $132 a month on average, the rest $64. Customers with 990–999 points spend $95, those with 1,000–1,009 spend $99. How much does the status itself give?
Near the threshold the customers are almost the same, and the jump there is the status's effect: about $4. The rest of the big gap is simply that gold customers buy more. Check below.Not quite: there is a jump at the threshold, about $4, and that is the status's effect. The rest of the big gap is indeed the points: gold customers simply buy more. Check below.The big gap compares different people: gold customers buy more because they are the most active. The honest comparison is at the threshold, where customers are almost the same, and the jump there is about $4. Check below.
20,000 customers around the 1,000-point threshold
Gold against the rest–
Above against below, in the window–
The status's true effect–
A narrow window gives an effect close to the true one, though noisy, as it holds few customers. The wider the window, the closer the estimate gets to the naive gap: ever more different customers enter the comparison.
A threshold works only if customers can't place themselves precisely around it. If points can be bought to jump over it, the keenest end up above it, and the comparison is unfair again. A check: the number of customers near the threshold should be about the same on both sides.
The effect at the threshold applies to customers near the threshold. For those with 300 points, the status may act differently.
StoryIn 1960 the psychologists Donald Thistlethwaite and Donald Campbell wanted to know whether a National Merit certificate helped American students. It went to those who scored above a cutoff on a test. The authors compared students just above and just below that cutoff. That is how the method now called regression discontinuity was born.Source: Donald L. Thistlethwaite, Donald T. Campbell, "Regression-Discontinuity Analysis: An Alternative to the Ex Post Facto Experiment", Journal of Educational Psychology, 1960.
"We matched each feature user with a non-user: the same plan, the same account age. Is the comparison fair now?"
When there is no group without the feature, the most common move is to take similar people. Matching on plan, country and account age removes the part of chapter 1's self-selection that the data can see. The part it can't see — motivation, need, habits — stays.
Naively, the feature's users retain 20 pp better. After matching on plan and account age, the gap shrank to 8 pp. What is the feature's true effect?
Matching removed the visible part of self-selection: 12 of the 20 pp. But the invisible part could be anything, so +8 is only an upper bound here. Check below.On the contrary, most likely less: the invisible part of self-selection (motivation, need) still sits in these 8 pp. Check below.Matching removed only what the data can see. Motivation and need remain, so the true effect may be much smaller than 8 pp. Check below.
Matching: what the data can see and what it can't
In this model the feature adds +2 pp. Matching on plan and age gives +8, and only matching on motivation too, which the data doesn't have, brings it back to +2. Matching shrinks the error but doesn't tell how much of it is left.
A matched comparison is a hypothesis with an upper bound, not an effect. If the gap vanished after matching, that is good news; if it remains, it may still be self-selection.
The best variable to match on is the metric itself before the launch: the user's retention or activity in the month before the feature. It carries part of the invisible motivation.
StoryeBay measured what its search ads brought in. A plain regression gave a return of over 4,100%, and with controls for time and region over 1,400%. Then the company switched off its non-brand search ads in about 30% of US regions. The experiment showed a return of −63%: the ads cost more than they brought, because they were seen mostly by people who would have bought anyway.Source: Thomas Blake, Chris Nosko, Steven Tadelis, "Consumer Heterogeneity and Paid Search Effectiveness: A Large Scale Field Experiment", NBER Working Paper 20171, 2014; Econometrica, 2015.
10
A long holdout
"We show the feature to everyone, but want to know its effect over three months. How many people should we leave without it?"
A holdout is the simplest honest way to measure a feature you have already decided to ship: a small random share of users stays without it for a few months. The smaller it is, the cheaper, but the noisier the comparison.
There are 200,000 active users, retention is 40%. We want to reliably detect a feature effect of 1 pp or more. What share should stay without the feature?
With 10% the holdout has 20,000 people, and the comparison reliably sees effects from 1 pp. With 1% it sees only effects from 3 pp, and half is hardly more precise than 10%, while 100,000 people miss the feature. Check below.Precision depends on the size of the smaller group. With 1% the holdout sees only effects from 3 pp, with 5% from 1.4 pp, and 1 pp needs about 10%. Half is hardly more precise, but costly. Check below.
The size of the holdout
Without the feature–
Reliably detects effects from–retention 40%, an 80% chance to detect
Margin of the estimate, ±–95% confidence interval
A holdout's precision hinges on its own size: doubling the share from 10% to 20% narrows the margin by only a quarter, and going from 20% to 50% by about another fifth. That is why people usually keep 5–10%, not half.
The holdout is drawn by lot before the launch, not from those who "didn't update yet": they differ on their own, as in chapter 1.
Sizing is the same decision as sizing an A/B test: first the effect worth seeing, then the number of people. The calculator is in chapter 9 of the course "A/B testing paradoxes", and a holdout for a whole year of changes is in chapter 17.
Deeper: why the noise between identical groups is so large.
What you can do nowYou see a natural experiment in a staggered rollout (6), compute a difference in differences and check the parallel lines before the launch (7), look for a jump at a threshold (8), understand why matching is only an upper bound (9), and know how many people to leave without the feature (10). The third part is about what hides inside the metrics themselves: old and new users, actions that just moved from one feature to another, and totals that move the wrong way. And at the end, when none of this replaces an experiment.
Part 3 · a little more maths
Cohorts, cannibalisation and when you need an experiment
The first two parts asked whom to compare with. The third asks what the metric actually counts. The retention of "all active users" depends on who is among them, actions can move from one feature to another, and total conversion can fall while it grew in every group. At the end: when all this is not enough and you should insist on an experiment.
11
Retention and "old users are better"
"Over the year, the retention of active users grew from 60% to 80%. Has the product got better?"
New users leave most often: many take a look and never come back. Those who have stayed for half a year almost all stay on. So the retention of all active users together depends on how many newcomers are among them, not only on the product.
A year ago, of those active in a month, 60% stayed the next month. Now 80% stay. Nobody changed the product in a way that would raise retention. How is that possible?
Long-standing users who are past their first months almost all stay. When signups slow down, the share of newcomers among active users falls, and overall retention rises by itself, though every cohort retains the same. Check below.It is possible without any improvement: when signups slow down, the active users include more long-standing ones, who almost all stay. Overall retention rises, though every cohort retains the same. Check below.
Two years of one product
all active users: how many stay the next monthnewcomers: how many stay after their first month
When signups stop growing, the retention of all active users climbs from 60% to 80%, though no cohort got better. Even if new cohorts got 5 pp worse, the total still rises. It is survivorship again: the active users are those who have already shown they won't leave.
Count retention by cohort: "of those who signed up in March, on day 30 there remained…". Compare cohorts of the same age before and after the launch.
Judge a feature for long-standing users on cohorts that got it at the same age, not on all active users together.
"'Quick reply' was used 50,000 times in a week. So it gave 50,000 replies?"
A new feature often does what an old one already did, only differently. Then part of its uses are actions that simply moved from the old way to the new. The feature's counter grows while the total number of actions barely moves.
Before the launch sellers wrote 200,000 replies a week. After "quick reply" launched, it was used 50,000 times a week. By how much did the number of replies grow?
Most quick replies the sellers would have written anyway, just more slowly. The gain is the total number of replies after minus before, not the feature's counter. Check below.The total number of replies hardly fell, but it didn't grow by 50,000 either: most quick replies replaced ordinary ones. The gain is the total after minus before. Check below.The feature's counter doesn't tell how many of these replies are new. Most quick replies the sellers would have written anyway, so the gain may be +10,000 or less. Check below.
Where the 50,000 quick replies came from
If 80% of quick replies replaced ordinary ones, the feature gave +10,000 replies, not +50,000. A report based on the feature's counter would overstate the effect fivefold.
Measure the whole: all replies, all orders, all revenue, not the actions through the new button.
If the new feature only speeds up an old action, its value lies in time or quality, not quantity. Then pick the metric to match (chapter 3).
13
An effect hidden in the totals
"The new checkout raised conversion on both phones and computers. But total conversion fell. Is the feature harmful?"
Total conversion is the average of the groups, weighted by their shares. If after the launch the number of people in each group changed, the total may move the other way from every group on its own. This is Simpson's paradox.
Before the launch half the visitors came from phones (conversion 2.0%) and half from computers (5.0%). After the new checkout launched, phones show 2.2% and computers 5.3%. Yet total conversion fell from 3.5% to 3.1%. What happened?
Say a social media campaign brought many people on phones: their share grew from 50% to 70%. Every group buys better, but there are more people in the low-conversion group. Check below.Computer conversion actually grew, from 5.0% to 5.3%. What changed is the share: there are more people on phones, from 50% to 70%, and they convert less. Check below.It happens, and the feature has nothing to do with it: there are more people on phones, from 50% to 70%, and they convert less. Every group buys better, while the average falls. Check below.
Phones, computers and the total
While the phone share after the launch is 50%, total conversion grows from 3.5% to 3.75%. From 60% phones it already falls to 3.44%, and at 70% to 3.13%, though both groups buy better.
When the total and the groups disagree, first check whether the mix changed: devices, traffic sources, new and old users, countries.
"There's no time for an A/B test. We'll launch and look at the numbers later."
The methods of part 2 are useful, but each rests on an assumption: parallel lines, an honest threshold, similar groups. An experiment needs none of them. Not every change is worth a test, but some are worth testing even when it is inconvenient.
Which of these four launches most needs an A/B test?
Here a specific effect is promised, a big decision depends on it, and being wrong is costly. A typo gets fixed without a test, the law requires the banner, and users themselves ask for dark mode, which promises no big money.A test is needed most where a specific effect is promised, a big decision depends on it, and being wrong is costly: the new recommendations and a year's budget. The rest can launch without a test.
A cheap experiment when it's "impossible"
What stands in the way of a test? Pick the obstacle, and the way around it lights up below.
WayHow, and what to watch
A "fake door"cost: a day of work
HowHalf the people see a button for the future feature, and a tap leads to a "coming soon" page. You compare how many people in each half tapped and whether the primary metric and guardrails changed. Demand shows before the feature exists; it doesn't yet say anything about its value.
A holdoutcost: a few percent of people without the feature
HowShip to everyone except a random 5–10% for 2–3 months (chapter 10). The decision is not delayed, and the effect is measured honestly.
A test on new users onlycost: a longer wait
HowNew users have nothing yet, so they can be split in half with no loss. The effect on old users may differ, but it is already an honest estimate.
Split cities or dayscost: fewer groups, more noise
HowIf sellers and buyers affect each other, split not people but whole cities or regions, or switch the feature on every other day for everyone (switchback). There are fewer groups, so the test runs longer, but influence between groups doesn't blur the result.
A nearer metric and a bigger effectcost: less certainty about the final metric
HowTake a metric that reacts faster (a contact with a seller instead of a purchase within a month), and test bolder changes: a big effect shows on a smaller sample. Compromises for those who can't wait are in chapter 14 of the course "A/B testing paradoxes".
A test is needed most when a specific effect is promised, a big decision depends on it, and a mistake is costly. Typos, legal requirements and small changes users ask for can launch without one.
Insist on an experiment when: a specific effect in money is promised; a budget, hiring or the roadmap depends on it; the feature is supposed to pay for itself; or the methods of part 2 give different answers.
StoryIn March 2012 eBay switched off its ads for searches containing "eBay" on Yahoo! and Bing, while keeping them on Google. Reports credited these ads with many sales. But 99.5% of the clicks that used to come through the ads moved to the ordinary link in the search results: people searching for "eBay" reached eBay anyway.Source: Thomas Blake, Chris Nosko, Steven Tadelis, "Consumer Heterogeneity and Paid Search Effectiveness: A Large Scale Field Experiment", NBER Working Paper 20171, 2014.
What you can do nowYou count retention by cohort, not for all active users (11), measure the whole instead of the feature's counter (12), check the mix when the total and the groups disagree (13), and know when to insist on an experiment and how to make it cheap (14). What remains is the exam: six product reports, each with one trap from the course, and then the verdict on the "Saved searches" report.
Finale
The exam and the verdict
Everything from the course is now in the reports that arrive after a launch. If you skipped part 3, the exam will barely suffer.
"Here are six launch reports. Which of them should we believe?"
Each report holds exactly one trap from the course, and one holds none at all. Pick what is wrong with it. After you answer, an explanation appears with a link to the chapter that covered it.
Report 1
A new checkout page · launched 20 OctoberNovember
October41,000 ordersNovember55,000 orders
+34%orders after the launch
The report's conclusion: the new checkout gave +34% orders. Last year orders grew by 31% from October to November: November has Black Friday.
"Before and after" mixed the feature with the season (chapter 4). Last year November gave +31% with no new checkout, so the feature gets a few percent at most, and only if nothing else changed that November.
Report 2
CRM integration · a B2B serviceover 2 years
With itpay for 19 months on averageWithout itpay for 7 months on average
×2.7 time with us1,800 customers with it out of 9,000
The report's conclusion: the integration keeps customers. Proposal: make it a mandatory signup step.
Self-selection (chapter 1): the integration is set up by companies that have already decided to stay with the service for long. Besides, a customer who stayed 19 months had more time to connect it. Making it mandatory won't turn people into such customers.
Report 3
A "1-click buy" buttona month after launch
1-click30% of all ordersUsual way70% of all orders
+30% orders"new" orders through the button
Total orders a month: 41,200 before the launch, 42,000 after. The same season and advertising.
Cannibalisation (chapter 12): most 1-click orders people would have placed the usual way. Total orders grew by 2%, not 30%. The button may be useful, but its contribution is these 2%, and only if nothing else changed.
Report 4
New search filters · a staggered launch3 waves
Wavesthe order of countries drawn by lotRetention+1.4…+1.7 pp in every wave
+1.5 ppdifference in differences, 95% interval +0.9 to +2.1
Countries still waiting for their wave changed by −0.2…+0.3 pp over the same months. Before the launch all countries' retention moved in parallel. The metric is day-30 retention of all of a country's users.
You can believe it. There is no trap here: the order of the waves was drawn by lot (chapter 6), the control is the countries still waiting, the lines before the launch are parallel (chapter 7), the effect repeats in every wave, and the metric counts all of a country's users, not only those who used the filters (chapter 1).
Report 5
A new onboarding · an urgent releasea week later
Week beforeactivation 31%, the lowest in a yearWeek afteractivation 36%
+5 ppof activation in a week
Weekly activation is usually 35–37%. The onboarding was rebuilt in three days after the 31% was seen.
Regression to the mean (chapter 5): the release came right after the worst week, and 36% is the usual 35–37%. The new onboarding has proven nothing yet; the honest way is to compare with normal and keep some new people on the old onboarding.
Report 6
Push reminders "New listings for you"a month later
BeforeDAU/MAU 20%AfterDAU/MAU 30%
Engagement +50%by DAU/MAU
Contacts with sellers per 100 users a week: 12.0 → 12.1. App uninstalls: 2.0% → 2.8% a month. Everyone gets the pushes.
A metric easy to move without value (chapter 3): a push brings people into the app, and DAU grows by itself. The primary metric, contacts with sellers, didn't change, and a guardrail, uninstalls, got worse. This is not a win.
And now the report from the start of the course
Report: the "Saved searches" feature3 months after launch
With itday-30 retention 63%The restday-30 retention 32%
Retention ×221,500 feature users out of 100,000
Verdict: this report says nothing about the feature's effect. Hold the pop-up for now.
63% against 32% is exactly what the button that does nothing gave in chapter 1: 21.5% of users, mostly active ones, against the rest. Such a gap appears with no effect at all.
The pop-up will raise the share who tried, but not the share who need the feature (chapter 2), nor everyone's retention.
What to do: compute these same people's retention before the launch; if the feature went out in waves, the difference in differences between waves (chapter 6, 7); and for the pop-up decision, a test of the pop-up with a holdout that doesn't see it (chapter 10, 14).
The same questions as a questionnaire that gives the risks and an estimation method for your launch are on the page "Can you trust this impact?". Handy to open before every report and to send to colleagues.