Test Everything

Ryan Hinchey

2

Prior to showing the first slide, I begin with the following story:

“I had so much content but only one hour so I decided to create two presentations and have my audience tell me which presentation they would prefer to hear about. “

Next I show 2 title slides and the audience votes.

Creating irresistible value propositions in half the time

Ryan Hinchey

Generating your own data for customer segmentation

Ryan Hinchey

That was a lie Experiment

Defining win-win Customer Value Propositions

Maximize

Value to customer Cost to ING

For each segment

High Perceived Value to Customers

Low Perceived Value to Customers

Low Cost High Cost

CVP sweet spot

Lose - Lose

Thin margins

No demand

We must understand our Customer Segments

If we build something nobody wants, what difference does it make if we accomplish it:

On TimeOn BudgetWith a well written PARPWith beautiful marketing material

Achieving failure = successfully executing a proposition that our customers don’t want

Every Segment is different

• Price / value sensitivity

• Marketing message, what they like, etc

• What is easy / convenient for them (where, when primed to buy)

• Interests & priorities

• How they make buying decisions

Different lifetime customer value

What’s in our toolbox to validate CVP ideas today?

We need faster, more effective tools.

A / B Testing(aka the scientific method)

① Hypothesis We can increase prices by 10% & increase profits

② Run Experiment Tell half of prospects price is 10% higher

③ Analyze results Determine which set had higher profits (by cohort)

④ Draw Conclusions Should we change our price (for any segments)?

Food for thought.

Where can we use the scientific method today?

Testing in Cyberspace

Ads

Create the ad here Preview here

https://adwords.google.com

Pick out search keywords for your ad to appear

Show me the data!

# Views Clicks

Click through rate

Understand which experiment is most successful

Experiment

Target your audience segment

Family Status

Location

Age & Gender

Really really target your audience segment

Example: high net worth individuals

Audience Size & Cost per click

Executives

Wealth zip codes

Education

Workplace

Show me the data!

# Views

Click through rate

Understand which experiment is most successful

Experiment

Clicks

What to put when someone clicks on the link?

What can be done in 5 minutes (for free) at

www.turnMVP.com

Google Surveys

http://www.google.com/insights/consumersurveys/home

Lots of question types

Building the Survey

The weeding out question

What do you prefer

What picture do you prefer

Rate importance

The Cost

Example of TestingPride & Prejudice book cover

Low tech data gathering

• Visit your call center and listen to your customers

• Study your Net Promoter Score Feedback

• Get out of the office and talk to your customer segment

• Ask to see your website & facebook analytics

When collecting customer data we must be mindful

of how we use it.

“It’s not the customer’s job to know what they want.”- Steve Jobs

“If I had asked people what they wanted, they would have said faster horses”- Henry Ford

Questions?