Key Elements: Optimizes study design to test the largest number of high-potential initiatives with minimal required resources Tests designed for accuracy and actionable insights Accounts for testing, statistical anomalies, and seasonality Predicts the profit impact of rolling out concepts

Test and Learn is an analytical strategy followed by consumer-focused companies to test ideas on a smaller scale to estimate impact. Often there are many good ideas to improve business, and typically, organizations prioritize these ideas against profitability and/or other key performance indicators (KPIs). One cost effective approach then is to “test” these ideas before executing across a broader customer base. Because Test and Learn strategies typically place significant demands on resources, test and control groups are carefully designed and paired such that there is a high confidence in the measured differences.

		How We Do It	Key Model Insights
	Organize test ideas and evaluate against profitability metrics or KPIs.		What impact will the test concept have on profitability or KPIs if executed across customer base? Will the impact vary across stores or customer segments? Do some components of the idea work better?
	Identify target customers and split them into test and control groups.
	Design “matched” test and control groups to maximize accuracy and precision of the testing measurement.
	Design and test activities.
	Evaluate impact.