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🧪 Showz: Revenue Optimization via Hypothesis Prioritization & A/B Testing

Python Pandas SciPy Seaborn

A hypothesis-prioritization and A/B-test validation pipeline for Showz, combining the ICE/RICE scoring frameworks with a Mann-Whitney U significance test — including a rigor check the original scope of this analysis skipped: testing whether the experiment's revenue advantage is statistically real, not just its conversion advantage.

📌 Executive Summary & Strategic Wrap-Up

📝 Executive Overview

This project runs Showz's product-change decision through two disciplines: hypothesis backlog prioritization (ICE/RICE) and formal A/B test validation. The headline result is a split verdict, and reporting that split honestly is the actual value of this analysis: Group B delivers a statistically validated conversion-rate improvement, but its apparent revenue/AOV advantage does not survive the same statistical test — a distinction the original scope of this project never checked for.

⚡ Analysis Phase-by-Phase Flashback

  • Phase 1 (Data Sanitization & Segmentation Integrity): Identified and removed 58 users active in both test groups, leaving 1,016 clean order records.
  • Phase 2 (Hypothesis Prioritization Engine): Scored 9 backlog hypotheses via ICE and RICE; adding the Reach factor reordered the top priority from a birthday-discount promotion to a platform-wide subscription form.
  • Phase 3 (Cumulative Metrics Engineering): Built daily and cumulative conversion, AOV, and revenue series; found a stable +15.98% conversion edge and a volatile −42.3%-to-+50.5% AOV swing.
  • Phase 4 (Anomaly Detection & Statistical Validation): Flagged outliers via the 99th percentile, then ran Mann-Whitney U on both conversion and revenue per order — the second of which the original analysis never tested.
  • Phase 5 (Behavioral Storytelling & Visual Analytics): Built a hero chart contrasting the validated conversion result against the untested revenue claim.
  • Phase 6 (Executive Conclusions & Business Impact): Delivered a corrected implementation verdict — ship Group B on conversion, retract the unproven AOV claim.

💡 Key Insights & Business Value

  • Conversion is the real, defensible win: +18.95% (outlier-filtered), P = 0.0070 via Mann-Whitney U — robust to noise and stable through the second half of the test.
  • Revenue/AOV superiority was never actually tested in the original scope, and it doesn't hold up: P = 0.8220, and the filtered effect reverses to −3.19%. The AOV spikes visible in the cumulative chart were the exact whale transactions the P99 outlier filter is designed to catch.
  • Reach changes the roadmap, not just the A/B verdict: under RICE, a platform-wide subscription form outranks a higher-impact but narrow-reach birthday-discount promotion — a separate, ongoing prioritization insight independent of this specific test.
  • A split verdict, reported honestly, is more credible than an inflated one: shipping Group B on a validated conversion lift is a strong, defensible outcome that doesn't need an unproven revenue claim attached to it.

🚀 Proactive Recommendations & Strategic Action Plan

🚀 Ship & Monitor 📊 Prioritization 🔬 Statistical Rigor
Roll out Group B to 100% of traffic on the strength of the validated +18.95% conversion lift. Build the subscription-form hypothesis (RICE winner) into the next roadmap cycle — highest reach-adjusted ROI in the backlog. Standardize a two-metric (conversion + revenue) Mann-Whitney check as the default protocol for all future Showz A/B tests.
Track AOV post-launch without assuming it will improve — this analysis found no evidence it will. Reserve high-impact, low-reach ideas (e.g., birthday discounts) for targeted campaigns rather than platform-wide rollout. Re-run the AOV test on a longer post-launch window; a null result now doesn't rule out a smaller effect this sample was underpowered to detect.
Correct any internal reporting that still cites the +27.83% AOV figure as a proven result.

📊 Target Business KPIs & Expected Impact

Strategic Initiative Primary Target KPI Statistical Basis
Group B Full Rollout Platform-wide conversion rate +18.95% conversion lift, P = 0.0070 (Mann-Whitney U, outlier-filtered)
Subscription Form (RICE Winner) Reach-adjusted ROI on next roadmap cycle Highest RICE score (112.0) among 9 scored hypotheses
AOV Claim Retraction Accuracy of internal reporting P = 0.8220 on revenue per order — not statistically significant; filtered effect reverses to −3.19%

🗂 Project Repository Details

  • Repository Slug: showz-ab-optimization-analysis
  • Primary Goal: Prioritize Showz's product hypothesis backlog and formally validate whether a tested product variant should ship, on both conversion and revenue grounds.
  • Key Achievements:
    • Experiment Integrity: Cleaned a contaminated A/B sample by removing 58 cross-group users before any metric was calculated.
    • Dual-Framework Prioritization: Scored and re-ranked 9 hypotheses via ICE and RICE, isolating how the Reach factor changes engineering priority.
    • Corrected Statistical Rigor: Identified and corrected an unvalidated revenue/AOV claim the original analysis carried without testing — validated conversion (P = 0.0070) while rejecting the untested AOV claim (P = 0.8220) via Mann-Whitney U at 95% confidence.

💻 Tech Stack & Environment Settings

  • Language: Python 3.12
  • Data Processing: pandas, numpy
  • Statistical Inference: scipy.stats (Mann-Whitney U test)
  • Prioritization Frameworks: ICE (Impact × Confidence / Effort), RICE (Reach × Impact × Confidence / Effort)
  • Data Visualization: matplotlib, seaborn
  • Environment: Jupyter Notebook

📁 Repository Structure

showz-ab-optimization-analysis/
├── Showz_AB_Optimization_Analysis.ipynb   # Full analysis pipeline (executed, outputs included)
├── hypotheses_us.csv                       # Hypothesis backlog (Reach, Impact, Confidence, Effort)
├── orders_us.csv                            # A/B test transaction log
├── visits_us.csv                             # A/B test visit log
├── requirements.txt                          # Reproducible environment dependencies
├── README.md
└── .gitignore                                 # Excludes venv/ and generated chart images

🚀 Getting Started

# Clone the repository
git clone https://github.com/CarlosACrespoS/showz-ab-optimization-analysis

# Navigate to the project directory
cd showz-ab-optimization-analysis

# Create and activate a virtual environment (recommended)
python -m venv venv_showz
source venv_showz/bin/activate   # Windows: venv_showz\Scripts\activate

# Install required dependencies
pip install -r requirements.txt

# Launch the notebook
jupyter notebook Showz_AB_Optimization_Analysis.ipynb

About

Hypothesis prioritization (ICE/RICE) and A/B test validation for Showz. Mann-Whitney U confirms an 18.95% conversion lift (P=0.007) — and correctly rejects an unvalidated revenue/AOV claim (P=0.822) the original analysis never tested. Python, Pandas, SciPy.

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