Difference Between Orders and Conversions

When using Mida for A/B testing, it's crucial to understand the distinction between order numbers and conversions. These two metrics, while related, provide different insights into user behavior and the performance of your experiments.

Conversions

A conversion is a unique event that occurs when a user (unique visitor) completes a specific action that you've defined as a goal for your experiment. In the context of A/B testing, a conversion typically represents a single, unique instance of a user taking the desired action, such as making a purchase, signing up for a newsletter, or completing a survey.

Key points about conversions:

• Unique to Each User: Each tested user can only have one conversion within the scope of an experiment. Once the user completes the defined action, they are counted as a conversion.
• Measures User Engagement: Conversions help measure how effectively your experiment encourages users to take the desired action.

Order Numbers

Order numbers, on the other hand, represent the total count of transactions or purchases made by users. Unlike conversions, the number of orders is not unique to each user. A single user can place multiple orders, and each order is counted separately.

Key points about order numbers:

• Not Unique to Each User: A single user can contribute to multiple orders. For example, if a user makes three separate purchases, each purchase is counted as a distinct order.
• Measures Transaction Volume: Order numbers provide insight into the total volume of transactions, indicating how many times users are completing the purchasing process.

Example Scenario

To illustrate the difference, let's consider an example:

• User A visits your website and makes a purchase (conversion), then returns later and makes two more purchases (additional orders).
• User B visits your website and makes a purchase (conversion).

In this scenario:

• Conversions: There are 2 conversions (one for User A and one for User B). Each user is counted only once as a conversion.
• Order Numbers: There are 4 orders (three from User A and one from User B). Each transaction is counted, regardless of how many times the same user makes a purchase.

Why This Distinction Matters

Understanding the difference between conversions and order numbers is essential for accurately interpreting the results of your A/B tests. While conversions help you gauge how well your experiment converts users into completing the desired action, order numbers provide a broader view of the total transactional activity generated by your users. Both metrics are valuable, but they serve different purposes and can lead to different insights.

By keeping this distinction in mind, you can better analyze your A/B test results and make more informed decisions to optimize your user experience and achieve your business goals.