A recent Financial Times article discusses how Kohl’s and other leading retailers are maximizing the impact of each new program. The leading discount department store uses in-market testing to evaluate new initiatives, such as introducing new product categories or issuing coupons, before implementing the changes network wide. This process reduces the risk that is traditionally associated with introducing new ideas and often leads to more profitable decision making.
The Kohl’s team analyses using the test and learn approach have often yielded unexpected results. For instance, a test revealed that selling furniture was actually detracting from sales in several categories, despite the belief that only children’s apparel would be negatively impacted. Katy Mackesey, Director of Ecommerce Finance at Kohl’s, explained that, “The software helped isolate what the issue was and prove that the counter-intuitive results were real. Once you use software like this, you can see that your intuition can be plumb wrong.” Click to read the full article.