Experimenting Ensures A Constant Stream

As a result, a continuous competition can break out in that area. While dependence on the platform has already developed in some cases. Continuous optimization of business models with data Many large. International giants work on an almost scientific way every day to optimize their business model. Not only do they have the most data at their disposal. But they also know how to translate this data into improvements within their business. Model through a constant stream of new experiments. That is one of the reasons why the largest parties are getting bigger and bigger and small. Or medium-sized parties are already struggling to achieve similar growth percentages.

Ensures A Constant Stream

Due to the wide availability of tools such as VWO , Optimizely and Google Optimize , many small and medium-sized parties have already carried out A/B tests. An increasing number of parties are already using these tests to work on the optimization of the business model in a data-driven manner. Yet the number of Colombia WhatsApp Number List companies that have actually embraced this remains very small. Business model testing cycle. Image source: BMI lab A shame, because in 2022 simply performing A/B tests to improve the conversion rate will no longer be enough. There are more variables that can have a major impact on the income statement. Testing prices is a good example of this. By testing with price elasticity, many companies can make a big impact not only on the growth of their turnover, but certainly also on the growth of their profitability.

Colombia

A Constant Stream

Experimenting ensures a constant CW Leads stream of innovations Not unimportant to mention is the fact that this way of experimenting can also ensure a constant flow of new innovations and product combinations. Amazon masters this game like no other. With Amazon Prime, Amazon does not have to earn so much from the streaming of series and movies, but the membership can also be earned back by the fact that these users order more from Amazon itself. The company is doing the same with the Kindle. Kindle users order more from Amazon. That way Amazon earns back the hardware. The payback period is then easy to calculate. This sounds like a logical strategy, but the basis of this type of combination is often laid by small, simple experiments that test whether it works or not.

Leave a comment

Your email address will not be published. Required fields are marked *