for Daisy

Businesses have to come up with creative ways to maintain their growth and improve

their profit. From the presentation, the best way is to perform designed tests. Here, randomly

selected strategies are assigned to various customers and the results observed. Clear and

accurate data collected from the experiment is one of its benefits. Using this data, the company

can create ways to improve efficiency and growth, increasing revenue, and getting higher

customer loyalty than the competitors. Among the major companies employing this strategy

are Food Lion, eBay, Kohl’s, and Capital One. Also, Amazon has continuously used these

strategies by incorporating other factors like product and strategy development with a real-time

website. This has helped it grow to be one of the largest companies around the world.

In companies like Amazon and eBay where they receive over billion-page views per

day, different kinds of experiments can be conducted concurrently without running out of

treatment and control groups. This is continuous multivariate testing. With this, they can test

results on website changes or a new pricing strategy concurrently. This will be essential in my

future studies while studying ways to improve the efficiency of these tests. In the future, as a

business analyst, I will be able to apply these skills to boost sales and profits, and my

knowledge about these methods will be a great assistance to the organization I will be working

for.

While developing a strategy to boost sales, State Farm conducted an experiment by

having two versions of their letter. Version A contained a simple version containing no images

Version B contained a colorful, big picture on the top, and there is also an agent's photo. And

the result is version A attracts 45% greater life in insurance sales whereas version B acted just

like an advertisement. Thus, it was only viable for the company to proceed with version A.

The major barriers faced by these studies are heavy industrial regulation, lack of

understanding by the regulators, and the concern that it might be unfair to the customers.

Regardless, other companies have successfully transitioned. Proactive testing is vital for

industrial growth and regulators must understand this, although current strategy might be unfair

to the customers. Also, this study is too complicated requiring complex analysis, and it is too

expensive to conduct and difficult to execute. Firms have to consider their financial capabilities

to conduct such a study. Other barriers come from organizational tradition where they might

oppose it only due to a past unsuccessful example. The organization has to learn from others

who have successfully employed experiments. After establishing the best strategies, the

organization must put them into practice or apply the best optimization in case of multiple

approaches.