Reinvent‌ ‌measurement‌ ‌strategy‌ ‌for‌ ‌the‌ ‌new‌ ‌normal‌

The reach of the pandemic is compelling business leaders to reinvent their offerings, services and products. Knowing how one is performing becomes crucial, as much as staying mindful of both the short term and long term impact of one’s decisions. Reconsidering your measurement strategy enables evaluation of what needs to be done – to remain sustainable and relevant when change is unprecedented.

Mohita Jaiswal & Hari Nallan

Why Measure?

“If you cannot measure it, you cannot improve it.” – Lord Kelvin

Betabrand, a clothing retailer, wanted to increase its sales, in the city of San Francisco. They hired an image tracking company to help them gain insights on the customer traffic in the store. Different heatmaps were generated by the firm to show where people walked and what they touched in the store. By knowing how many people touched an item in their store, Betabrand could understand the popularity of items, also discovering pricing problems for items that were picked a lot but not bought enough.

It is said that what gets measured gets managed. More likely, what you measure is all you’ll get. What you don’t (or can’t) measure is lost and not done. As human beings, we are also compelled to adapt our behavior to the metrics we are held against.

Technology like this is revolutionizing retail by generating insights on space layout optimization, pricing strategy, customer interest tracking, while driving home the importance of having a focus on measurement.

To transition from an organization that is data-aware to becoming one that is data-driven means to be aware of one’s data sources, while being capable to process it and having a data strategy in place. A data strategy defines what data needs to be collected with a clear basis in the recognition of what needs to be measured.

What to measure – Indicators are not essentially the right measures

  • How do we know if a product or service is performing well?
  • How do we know if progress on a project/value proposition has been made?

While we may have determined a set of key performance indicators on the basis of business goals, a crucial factor in the measurement strategy that often takes a backseat is – one’s audience. 

An audience-first analysis can help improve your value propositions’ measurability, as user actions can themselves predict the value of your indicator. An approach focused on the users can help one determine what one’s audience cares about, creating a feedback loop to enable improvisation.

Consider 3 ways to involve users as a focal point in your measurement strategy:

  1. Leverage digital assets to measure user actions
  2. Understand the behavioral indicators of users, on the basis of the data points captured as user actions
  3. Discover behavioral indicators that could be quantified as actionable measures 

 

Let us look at an example to reflect on an audience-focused approach to redefine a measurement strategy.

Imagine a regular flier, a valuable customer of an air carrier, gives the customer services support feedback about their last flight.

It was good. There was a big chair to lean on. I watched a movie on the screen. However, I and my partner both used different earphones to see the same movie on two different screens. We might have liked watching it together at the same time. Also, we did not get seats adjacent to each other, we had to go about requesting people for a seat change which was troubling.

What were the actions the user took?

  1. Leaned on the seat
  2. Watched a movie on the flight seat TV
  3. Partners watched the same movie on different-seat TV’s
  4. Looked for people for a seat change

What do these actions indicate about their behavioral motivations – user satisfaction?

  1. Users felt comfortable
  2. Users felt entertained
  3. Did not feel entertained while enjoying each other’s company
  4. Could not enjoy each other’s company seamlessly

What behavioral indicators could be quantified to actual measures?

  1. Viewership of content per visitor
  2. Co-travellers adjacent seat allocation percentage

 

Evaluate your measures to inform decisions on value proposition

Not all of your users are the same and they should not be treated similarly. What could seem entertaining to one might not be entertaining for someone else. Hence it is of importance to segment users who use your offerings more regularly and are your brand advocates or potential ones. Segmenting users on their affinity to the brand, user actions subsequently need to be analyzed to create a measurement strategy.

Five questions to ask yourself:

  1. Who are my brand advocates? Who are these people?
  2. What are the actions they are taking?
  3. What are the places of friction in their experience? 
  4. Which behavioral indicators can I quantify?
  5. What can be the actionable measures to these? 

Testing and measurement will allow you to make data-driven decisions on where and how much to invest to get the best results. There’s no one-size-fits-all measurement approach for these fast-changing times, but you know your business best: the right strategy depends on your goals, your customers, and the marketing conditions for your industry.

Mohita Jaiswal

Mohita Jaiswal

Research, Strategy and Content consultant. With a master's from IIT Delhi, Mohita has diverse experience across domains of technical research, big data, leadership development and arts in education. Having a keen interest in the science of human behavior, she looks at enabling holistic learning experiences, working at the intersection of technology, design, and human psychology.

Hari Nallan

Hari Nallan

Founder and CEO of Think Design, a Design leader, Speaker and Educator. With a master's from NID and in the capacity of a founder, Hari has influenced, led and delivered several experience driven transformations across industries. As the CEO of Think Design, Hari is the architect of Think Design's approach and design centered practices and the company's strategic initiatives.

 

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