Friday, May 11, 2012

Can online tests drive multi-channel strategy?

If you are even remotely connected to the retail/CPG industry, it is hard for you to miss the two buzz words – Multi-channel strategy and “Test and Learn”. Test and Learn is not a new concept; it is as old as the retail industry itself. 

It refers to how a retailer “tests” a strategy in a few stores and “learns” from it before doing a full-fledged rollout. These tests could be about introducing a new store format, a new assortment type, a new marketing strategy or anything else. What has changed recently is the extent of science supporting these tests. Questions like “What are the right test stores?”, “How do I extrapolate the lifts seen in the test stores to the rest of the stores?” are being answered more analytically than they have ever been in the past.

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