KPI traps: How "successful" experiments can still be failures

In the realm of A/B testing, experiments often yield statistically significant results that fail to translate into meaningful real-world impact, a paradox that highlights the importance of solving the right problems and selecting appropriate metrics aligned with true business goals. Teams frequently fall into "KPI traps" by focusing excessively on specific metrics without considering their broader implications, resulting in misaligned incentives and potentially detrimental outcomes. To avoid these pitfalls, it's crucial to align KPIs with overarching business objectives, consider the long-term effects of changes, and use multiple metrics, including leading indicators, to capture a comprehensive view of user experience and product performance. Additionally, monitoring long-term impacts through strategies like holdout experiments can help validate the enduring benefits of a feature, while statistical methods can adjust for false positives and the winner’s curse. Emphasizing the value of learning from failures, the text advocates for a balanced approach to experimentation that embraces both successes and setbacks as integral to innovation and growth.