Velocity in CXO is defined as the number of experiments that is done in a certain time frame. Many companies, CEO’s and highly appreciated CXO guru’s propagate that velocity is the most important success factor in Customer Experience Optimisation:
The real measure of success is the number of experiments that can be crowded into 24 hoursThomas Alva Edison
We try things… we celebrate our failures. This is a company where it is absolutely okay to try something that’s very hard, have it not be successful, and take the learning from thatEric Smidt, former CEO, Google
So, how do you achieve success in CXO? Improve the speed of experimentation.Peep Laja, CXO guru
Our success at Amazon is a function of how many experiments we run per year, per month, per week, per day…Jeff Bezos, CEO Amazon
So velocity is the only thing that counts, just run as many experiments as you can and start raking in those Dollars, Euros or Yuans. This feels like Forrest Gump: running for no particular reason.
The reason why more experiments is such a powerful thought is that it accelerates growth. It really pays of to increase velocity in your experimentation program as Bloomberg shows:
But in order to increase velocity, there are some constraints:
Traffic: If you don’t have the traffic, you can not increase the number of experiments.
Meaningful hypothesis: Do you have enough relevant hypothesis that actually can make an impact on the customer experience
IT capacity: Successful experiments need to be implemented. If the IT department has other priorities, it doesn’t make sense to scale your CXO program
Most organisations face one or more of the constraints mentioned above. So if traffic is the bottleneck, and there is no budget to increase (IT) capacity, you want to make sure that the experiments you are able to run have the highest possible impact. This starts with a meaningful hypothesis. In order to define a relevant hypothesis, you need to understand customer behaviour and what it is what users want to accomplish on your website or app. Gather observations, use customer feedback tools, dive into your analytics data. In other words do your research. The better you understand what is holding users back to do business with you the more relevant your hypothesis will be. In other words: quality of the hypothesis and the right prioritisation of the hypothesis according to predefined criteria is what determines the success of your CXO program. Positive results will then pave the way for scaling up the number of experiments.
Velocity is important but velocity follows relevance.