Often retailers make the mistake of taking an idea straight to implementation without testing the concept rigorously. While testing may seem like it would slow the process down and add costs, the opposite is true. In fact, approximately 25% to 30% of new initiatives don’t work, leading to declines in revenue and customer satisfaction. Consistent, reliable and scalable testing saves retailers both time and money.
With only 5% of retailers implementing effective testing, there’s an opportunity to edge out the competition leveraging insights from a properly executed study. But how can retail leaders experiment effectively without squandering resources? A disciplined six-step testing process can guide retailers to make smarter decisions that drive improvements to their business.
The importance of developing a good hypothesis
Defining test segments and parameters
Ways to reduce human bias
How to best analyze the results for maximum impact