Multi-armed Bandit

Unlike A/B Testing, multi-arm helps you test multiple options on one aspect of your product or service at the same time. Additionally, it also takes the action of scaling the best performing option by itself.

How it works: Let’s explore one of the methods: Epsilon-Greedy.

• On 20% of your customers, it explores or tests out multiple options to see which one performs best. On 80% of your customers, it exploits or adopts at scale the options that has the best performance.
• This mode kicks in once you’ve at least one decent option. Prior to it, 100% of the customers are on explore mode.

The details: You’ve to choose interchangeable options. For example, you can use it for posts headlines or for cover image in a post. However, you cannot use it for things like different pricing tiers.