Multivariate Testing (MVT) & How It Helps To Grow A Business
A Statistical Process Improvement Tool That Can Be Used To Boost Sales, Maximise Output And Save Money By Reducing Expenses & Lowering Defect Rates.
One of the methods we use to improve your business is multivariate testing (MVT).
MVT is when you test lots of different variables and business improvement processes all together. Then you measure the results and process them with a mathematical algorithm. The results will tell you which factors you can change to improve the yield.
It can literally be applied to improve any business process.
You can use MVT to find the most efficient installation process for
telephone cables. You can even use it to find the best converting layout
of your website in order to make more sales without increasing the
number of website visitors you have (though we prefer A/B split tests
for online improvements).
You can even use the MVT process to test dozens of process improvement ideas all at the same time. Once the results are in, we can figure out the exact combination that will boost your gains by the largest amount.
When we put those ideas into practice in your business, you will see
a positive difference in whatever you were trying to improve (revenue,
output, waste/defect rate reductions etc).
Dennis Harris, president SBC/Ameritech: "Some of the ideas that
intuitively we'd think would help,
didn't. And some that we didn't think would help did. And that's the way
it's always been when I get
into an MVT project."
Executives Don't Always Know Best
Every person in top-level management wants the same thing. Higher
customer satisfaction, better
quality of products, lowered costs and an overall larger profit.
Most Business Ideas Don't Work - Beware The 'HiPPO'
It's true. No matter the source of the idea or their level in the company, these are the overall statistics:
Research has shown that positive ideas can come from any level of an
organisation. So both the CEO and the cleaning lady are as likely as
each other, to come up with an idea that
Testing Is Essential
The only way to know which ideas will improve your business is to test them. But this is generally not efficient. You can't test every single improvement idea one by one. It takes too much time and costs too much money. So it's generally very impractical.
Another problem with testing ideas on a one by one basis is that you can't see the effect of one idea on the other.
For example, you can test the effect of rain on a brick. You
can also test the effect of
Testing Conditions Together Is Essential
The final problem with testing factors one at a time is that the test won't represent real life situations. In the real world, conditions are constantly changing.
So any attempt to hold all the other factors constant whilst only one of them changes is not a very realistic simulation of real-world events.
For example, if you were testing wind and water on a brick, you might use a certain speed of wind and a similar amount of mater in each test. But in real life, the wind and rain don't always arrive together. Over time, this will change how the brick gets weathered.
So the simulated test doesn't represent real life conditions closely enough.
Large Issues Cause Executive Guesswork
In an organisation, the above issues are seen as such large problems.
So most executives aren't able to face them head-on.
Even though they'd like to
make data driven decisions, most executives think they don't have the
enough time or money to test
The result is that it they end up relying on regular old guesswork. MVT
can fix this.
Businesses that use MVT regularly generate millions in profits and cost savings as a direct result of using the MVT process.
Do You Want To Use MVT To Improve Your Business Profits, Without Needing To Increase The Number Of Customers?
Once you see the effects of MVT in your organisation, it will be a lifelong tool for you.
We can help implement MVT for your company and it will help you with:
Get started right now with our limited time 'Lost Profit' Finder: Diagnostic Session. It's a real, customised 'pain point' report for your business.
It will tell you how you can improve your business by highlighting weak areas. It will even reveal certain weak points you may have never even considered before.
Learn more about how MVT can
improve profits for your business -