Using Design of Experiments To Sharpen the Sword

Using Design of Experiments To Sharpen the Sword

Once you have measurements in place and are gathering data on your Marketing programs, you have reached the “Rationalize and Improve” phase of the Six Sigma process.

In other words, it’s time to phase out what cannot meet your expectations, deploy those resources elsewhere, and improve those which show the most potential.

Realistically, every program can be improved. The question is, at what cost? That’s where the tool called “Design of Experiments” or DOEs come into play. DOEs are simply the application of rudimentary scientific inquiry.  Let’s focus on the word “experiment.” 

To experiment is to hold certain elements of a program constant while varying other elements in order to determine the effect of the variation on the overall outcome.  Let’s take a simple, real-life example. 

The process of obtaining data on an individual consumer is a common goal of many Experiential Marketing programs, such as those held in high-traffic venues such as sporting events.  The possibilities for experimenting with the yield of such an operation are numerous.  One could:

-       Set up the sign-up tables in different types of locations, to determine which achieves better yield – is the location near the food stands better than the location near the entrance, or near the bathrooms?

-       Provide different and mutually exclusive offerings – perhaps a tote bag at one and a stuffed animal at another in exchange for consumers’ data – which gifts are more conducive to improving yield?

-       Set up tables outside the stadium – perhaps near the parking to see if yield improves or declines – signaling a potential savings in cost due to lower site or set up fees.  The variations are endless.

The point is that certain portions of the experiment are held constant – the same stadium, the same game, the same credit card offer, etc., while changing other aspects to determine if  the performance can be improved. 

This process is systematically used to improve the outcome of an investment.