Every successful marketing campaign starts with a hypothesis. A strong understanding of your target market, along with an idea for how you can provide them value through your product or service is the key to success. Using data and experimentation to test assumptions will give you confidence in what strategies are working best for each individual customer type. This 7-step guide to experiment marketing accurately will help you get started!
An experiment marketing is a process in which marketers test a particular hypothesis or idea to determine its effectiveness. Experimentation may seem easy, but some principles should be followed when experimenting to ensure the results are accurate and actionable.
Experiment marketing can add value by making data-driven decisions - increasing revenue, reducing costs, increasing customer satisfaction. Ideas should be prioritized and tested before they become problematic for the business. It should illustrate potential problems before they surface and create opportunities to capitalize on trends. With new features, email campaigns, landing pages, it should provide a chance to enhance a product not available anywhere else/ improve upon its competitor's version of said product.
Experimenting helps us understand how customers respond to an idea, product, or service. This gets your foot in the door with new technologies and ideas. Also it builds customer satisfaction since you are constantly improving their experience through an iterative process.
Why Should You Run Experiment Marketing?
As a marketer, you influence your company's revenue. Experiment Marketing allows marketers to know the value of their ideas by testing them before implementation. It helps to build innovative products that drive customer satisfaction and product differentiation. Not only that but it also allows us to continually improve our knowledge of what works in the marketplace. Thereby providing an opportunity for quick learning - allowing marketers to make corrections along the way before a major change is affected.
Experimentation also increases efficiency by quickly pinpointing the best solution for a problem. It decreases cost because problems are rectified early on before they become large issues/costs are minimized by vetting out bad ideas earlier rather than later through rapid iteration. Also, markets can be segmented more effectively when using experimentation as a method of understanding customer behavior. It helps to strengthen the relationship between marketing, sales, product development, and management by fostering good communication through transparency.
It builds trust with leadership because ideas that may have seemed outlandish can be tested before they are fully executed (testing ideas that would typically be shot down right away). Experiment Marketing is necessary for market research since it provides an opportunity to observe real-world behavior in a controlled environment/helps us understand how people interact with social media posts/email messages/website content.
Hence, experimenting is so necessary for finding problems early on so you can fix them quickly before more damage is done. It helps communicate new concepts/ideas which helps companies stay up to date with current trends.
How To Conduct Experiment Marketing?
1. Brainstorm and prioritize experiment ideas
Brainstorming is the starting point for an experiment, so you will need to get your creative juices flowing before moving forward with designing an experiment. Experiment ideas can come from many places - people within the company, customers, hiring managers.
Experiment ideas should be prioritized by considering the likelihood of success/relevance to your business/impact to revenue/ROI for resources used. Once you have a list of high-potential experiments, narrow them down based on resources available or required (budget impact) or other constraints (time restrictions). Experimentation requires careful planning to make sure you are executing efficiently while maximizing return on investment.
Ideas could include testing new marketing materials like landing pages, website changes, emails, new copy, testing new technologies like social media platforms, paid advertising campaigns, mobile marketing apps.
Experimentations could also include analyzing how people respond to your business's unique selling proposition of value proposition. Ideas can come from just about anywhere - the only requirements are that they have a basis in fact and address a question you are looking to answer to grow your company measurably.
2. Find one idea to focus on
Once you have your list of high-potential experiments chosen from among many possibilities - pick ONE! The key thing here is to focus on one at a time so you can run them correctly and get accurate results. It requires dedication and enough resources/time to track KPIs (Key Performance Indicators) and make changes as needed. It should be used to answer a question or learn about a problem you are having rather than trying out hundreds of ideas all at once.
3. Make a hypothesis
While it's awesome that your team came up with a ton of great experiment ideas, it's not going to do much good unless they can predict the results! Experiment marketing is useless without forming a hypothesis first - because even if you do have the right idea. If you can't correctly predict what will happen as a result, you won't know where to go from there!
Experimentation without any proper pre-planning is generally unsound science that wastes time and resources/the results become subjective instead of objective. It requires a hypothesis to be made to answer the question you are looking to answer. A hypothesis is an educated guess about what you think will happen if your experiment is run, based on limited data available. The key here is limited data - it's not possible to fully understand everything so formulating hypotheses is necessary when doing scientific studies.
Experimentation with no basis for why or how? No thank you! Hypotheses are pre-planned ideas about what WILL happen with the right variables in place. If you have many ideas/experimentations, pick one hypothesis from among them and focus only on that idea/hypothesis for that round of experimentation.
4. Collect Research
Experimentation is all about asking questions that are not immediately answerable with the information you have available. It also requires enough research to develop a reliable hypothesis that you can test.
Without any research, it is just running an idea with no basis for why or how it will work - which makes it very difficult to correctly determine what happened! Adding research into your hypotheses increases the accuracy of results and saves time/resources trying to figure things out down the line.
Experiment marketing is like science - there is always more to learn so collecting relevant data before moving forward is necessary to make sound decisions. It would help to know what happens next based on experimental outcomes. It begins by collecting information relevant to answering your question; this might be reviewing analytics (data) about your historical performance, interviewing customers (like surveys or focus groups), or reading articles/books about your topic.
5. Select Metrics
After you have collected research, select the specific metric(s) you want to measure based on the goal of your experiment idea and hypothesis. As mentioned above, every business has many KPIs that tell them if they are doing well or not. We are required to pick specific metrics to measure so you can accurately determine what happens with the experimental variables you have identified/set up.
6. Execute the Experiment!
Now that you have selected which experiment/hypothesis you will run, the next step is to set everything up. It requires proper execution to determine how things work; this means using statistical analysis tools (Google Analytics, SurveyMonkey) to correctly identify what happened with your experiment(s).
7. Analyze The Results
Experimentation should be about trying to find out how things work to make better decisions going forward - which means that you need to analyze the results of your experiment to do this. It requires determining if something works (or not) through statistical study; experimenters must set up tracking systems that record/measure metrics which must then be analyzed for accuracy. Experimenting without knowing anything happened is just wasting time and resources!
It requires identifying a measurable goal and hypothesis based on research gathered. Executing the experimental variables properly, & collecting/analyzing relevant data. So, that you can answer your question(s) about what happened with the Experiment Marketing you have carried out.