MDE (Minimum Detectable Effect)
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The smallest difference in performance between two variants (e.g. conversion rate, revenue per visitor) that a statistical test can reliably detect, taking into account sample size, confidence level and statistical power. In CRO andA/B testing, the MDE is used to define the minimum amplitude of change that the test can identify as statistically significant.
Too high an MDE risks masking real but small gains, while too low an MDE requires large volumes of traffic to be detected with any certainty. It is therefore an essential parameter to be adjusted according to business stakes, available traffic volume and test objectives. Properly calibrated, it enables tests to be prioritized according to their potential impact, and avoids decisions based on random fluctuations.