“Test and learn” your way to more effective marketing

By Andrew Pierce, Senior Partner

Too many marketers remain overly dependent on traditional, historical, or one-dimensional modeling techniques to measure their initiatives. In an environment defined by non-stop change, metrics built around returns on past investments and based on lagging indicators, may not offer an accurate forecast of future results.

Marketers should consider using the “test and learn” approach to initiatives and evaluating outcomes. This process involves systematically varying the elements of a marketing equation using experimental designs to determine optimal strategies for a brand, product, or geography.

With test-and-learn, businesses experiment with different combinations of tactics—new and traditional, together and separately—on a smaller scale and with varying parameters, such as price and product mix, to evaluate results. The various combinations tested are based on both judgment and fact-based assumptions about tactics will create the greatest financial impact or increased efficiencies.

These results can build a powerful argument for brand and marketing investment because they drive faster in-market learning to support your strategy. Additionally, test-and-learn is cost-effective at a time when tolerance for missteps is low and budgets are often static.

It’s all about demonstrating effectiveness – the issue preventing marketing executives from wielding greater influence within their organizations. Test and learn is a route to quick wins that build marketing’s credibility while providing a platform for continuous improvement of the overall marketing mix.

This article is adapted from a piece that originally ran in the Dec. 15, 2007 issue of Marketing News. Click here to read the original.

This article is from Prophet News Letter in March 2008.