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Gone are the days when marketers made decisions relying purely on intuition and experience. With data and analytics proliferating, marketers are increasingly looking to data to inform every decision, running tests to understand and validate what works and what doesn’t. A test could be as simple as changing the color of a button on the mobile app, or as complex as using different machine learning algorithms to send a personalized offer. In both these cases, tests enable marketers to experiment by applying the change on a small percentage of the overall customer base and measuring the effect.
According to Gartner survey analysis, organizations that significantly outperform their competitors are almost twice as likely to make testing and experimentation a marketing priority. Running tests helps marketers on their journey to drive superior customer experience, growth, and return on investment (ROI). Almost half of companies in an Optimizely survey credited experimentation for driving a 10% uplift in revenue. Even a failed test provides some learning, some insight into customer behavior.
Running a test that provides valuable learning without impacting the business adversely is a mix of science and art. A well-conceived test involves three steps, as follows:
For organizations to truly build a test and learn culture, management support is critical. It takes courage for marketers to acknowledge and work with the unpredictability of human behavior. Great managers recognize this and are focused on outlining goals and providing direction to the team. They also understand the importance of having the right infrastructure and tools to enable employees to run tests at scale with speed. To conclude, a quote by Amazon’s Jeff Bezos sums up the importance that leading businesses place on test and learn: “Our success is a function of how many experiments we do per year, per month, per week, per day.”
Find out more
Want to know how to get started, assess your current test and learn capabilities, or accelerate your journey? Get in touch and we can help you explore your options.
Managing Consultant, Insights-Driven Enterprise (IDE),North America
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