How culture determines your value measurement
Yesterday, after a year of working with data scientists, I was thrown (yet) another question on how we measure the value of our personalization activities on business. It struck me differently — sure, we had the usual A/B testing framework for continuous improvement and we had incremental uplift monitoring that would tell us that we contributed to $10 million in incremental revenue, but the question was different.
You see, you can stake as many claims to have contributed to $10 million in incremental revenue as you like, but unless it is recognized by business as so — which means it translates to actual money in the bank — they don’t mean anything. The reason for this is, we report $10 million, the marketing team (who has worked on making those offers) reports another $40 million and the app development team reports another $20 million. The executives look puzzled to see that they only have $40 million in the bank — but incrementally, individual teams report that they have, in total, $70 million.
So, we went deeper.
(Side note: Work with data scientists… they ask questions which are so fundamental, you’ll be fascinated every day)
What is value?
Our personalization activities were simple. Ensure that our customers saw relevant offers on the application and…