Implementing a test and learn culture is an excellent opportunity for a business for many reasons. Organizations use it to quickly experiment on hypotheses that they prioritize across their whole business, or individual units, quickly measuring and understanding the KPIs around those hypotheses to drive their future decision making. You can gain great insight and success using a test and learn culture. Companies that are successful embrace the benefits that a test and learn culture can deliver and understand that it is consumer-focused. Test & learn provides a framework of the sort, with each frame being a challenge to deliver possible solutions. When companies are ready to implement a T&L culture, three main questions arise.
1. What impact will the program have on key performance indicators if executed across the network or customer base?
2. Will the program have a larger impact on some stores/customers than others?
3. Which components of the idea are actually working?
1. In terms of the impact, a teach and learn culture will have on KPI’s is if the KPI’s will be met, increased, or decreased, depending on the specific KPI. Hopefully, with teach & learn, you are testing for a possible solution in which the challenge already exists and preferably one where you already have data to refer back to. For example, when a company has a product they want to run a T&L with a small group of consumers; they want to have a product in which they already have data. They test different versions of what they want to achieve and improve based on what consumers are looking for in the product. Once they have their results/data, they can use this to improve the product, which means they have learned from their testing. They then use this data to modify their KPIs with the intention to improve them, whether it be to increase awareness by a specific number, increase satisfaction by a specific number, reduce calls to customer service, etc.
2. In regards to the impact on customers, there will always be an impact. Still, it is up to the marketer to minimize the impact and keep the T&L culture within its employees with the outcome to the consumer being satisfaction and improvement.
3. Which components of the idea of working? This will be answered during the learning portion of the testing because it allows you to digest the results of your teaching and to learn to see what has improved or not. This also ties in with your KPI’s. If your KPI’s are improving, then you know the components of the idea are working.
A great example of a company that uses T&L is Amazon. They are hugely successful because of their willingness to experiment. One of the T&L’s they ran was page speed. They knew the rate of speed in which the page loads is significant for their consumers, so they ran a T&L on the ratio of sales to website performance. With the data they received, they implemented what they learned to improve their customer’s speed load page and ultimately improve customer satisfaction. To view what else Amazon ran T&L’s on, click here.
Creating a teach and learn culture is not always an easy task within an organization, but setting up test and learn will lead the company to success, improve customer satisfaction, and improve KPI’s. It is the willingness of the company to allow them to embed this culture and breakthrough new challenges.