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Loyalty Offer Repeat-Purchase Test

HardA/B Testing & Experimentation00:00
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Your question is Loyalty Offer Repeat-Purchase Test. Take a moment with it on the right.

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Problem

Scenario

You work on a retail shopping experience and want to test a new loyalty offer intended to increase repeat purchases. The team is concerned that any lift could come from short-term behavior changes or could hurt other parts of the customer experience.

Question

How would you design the A/B test to measure whether the loyalty offer truly increases repeat purchases? Walk through how you would define success, choose the randomization unit, and decide whether the offer should ship.