This post is by Kieran Flanagan from Openview Labs
Click here to view on the original site: Original Post
A critical part of growth in product-led companies is their approach to experiments. It’s the experiments that often unlock the door to opportunities you wouldn’t have otherwise discovered. They help you to understand your users better and give you insights on how to create more value for them. We’ve gotten advice from Patreon, Pinterest, SurveyMonkey, Invision and more on how to make growth experiments a roaring success in your company. Here are five great pieces of advice you can use to improve your approach to growth experiments.
1. A hypothesis is not a predictionThe hypothesis is a central part of your experiment doc – it’s a statement you believe to be true about your users. A common mistake when forming your hypothesis is to state it as a prediction based on a metric you think will improve, something that fails to articulate what you believe to be true of
users. Let’s take an example of a growth team who are trying to improve the checkout flow of an online e-commerce store and compare two common hypothesis types. Prediction-based hypothesis: User-based hypothesis: The problem with basing a hypothesis on a prediction formed around a metric is that you haven’t articulated what you believe to be true about your users. By not doing this you won’t be clear on what learning the experiment has provided you about those users. It’s difficult to articulate what you’ve learned from an experiment if you don’t have a clear hypothesis.
2. An experiment helps you understand the potential upside of an initiativeNearly all experiment docs will contain a section for the predicted upside from an experiment. If this is successful, how will it impact one of your core business metrics? The reality is if you could accurately predict the upside of a potential change then you wouldn’t need to run the experiment in the first place. Experiments are another form of research. They help you to better understand the potential success or failure of an initiative and how it could impact your metrics if successful.
3. Your ability to properly scope an experiment will have a significant impact on the success or failure of your growth team.To minimize your risk from taking on experiments, continuously look for ways to cut down on the scope of that experiment. If you can keep the scope of your experiments low:
- It’s easier to get buy-in from stakeholders because you’re reducing the potential downside of the experiment failing.
- You won’t be so dependent on a small number of experiments succeeding as you’ll be able to run a higher volume of experiments that require a smaller amount of work.