Objectives of knowledge management

Q. Online channels bring great opportunities to test propositions online. Can 
you advise on approaches to testing propositions?
Roberto Hortal:
I have used online channels to test propositions in a couple of ways:
● 
Assign propositions randomly to visitors on first arrival to test interest/sales. I would 
typically run this against a large control group (being offered the current main prop‑
osition) to both protect commercial results and detect the effect of any external 
influences that maybe otherwise wrongly influence the experiment. This approach 
can be extended beyond the site, via randomised allocation of marketing messages 
on Display, Search etc. to measure a proposition’s attractiveness. It’s important 
to test all aspects of the proposition: a very successful proposition at attracting 
interest may convert badly if it can’t be priced at a level that matches customer 
expectations.
● 
Provide a modular proposition platform and allow customers to combine proposi‑
tion elements. We can easily analyse popular combinations as well as secondary 
correlations such as the propensity to add a certain ancillary product to a particular 
proposition configuration, and understand the compound impact on profitability, 
retention and advocacy from what we know about each of the modular components 
in isolation.
I’ve found that proposition testing rarely fits neatly an A/B scenario, with tests quickly 
developing into complex multivariate experiments with a significant number of vari‑
ables. It is important to ensure the tests are solidly planned, rigorously executed and 
statistically significant. Free tools like Google Website Optimiser provide information 
to test and get the best out of website contact. However, such tools will not prevent 
badly designed experiments from yielding wrong data. In my experience, the only way 
to ensure valid tests and improved business results is to bring in the best analyti‑
cal brain you can find. Analytics is the first role I fill when I build a digital team from 
scratch, it’s that important.