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Data will not tell you what to do

mikkeldengsoe.substack.com

21–30 of 75 posts

Re: Data will not tell you what to do

#21
post #16

Earlier quoted context omitted.

Much of A/B testing is far deeper than the color of buttons. How much faster can we process payments through provider A versus B in different countries around the world? If we offer insurance after checkout, do we convert more than offering it before? What ranking algorithm of skus leads to the highest conversion?

And what does any of that have to do with finding the right services or products for the right customers? Does a customer care if you shave off 2% of the final cost or do they care about having world-class customer support? Does a customer care if a product has a higher conversion rates or if it is the product they were looking for in the first place? Does a customer care more about how long payment processing takes…

> Does a customer care if you shave off 2% of the final cost or do they care about having world-class customer support?

Times and times again, they'll tell you the latter and actually choose the former.

The same bargain as paying more to have no ads: people vocally push for no ads, some will ponny up the money, and the vast majority will make do with the ad supported model, while ad blocking or giving up on the service when they're fed up with it.

> Does a customer care more about how long payment processing takes or do they care that it takes their local mobile payment app?

I'm curious how you find the people to ask that ? If your current service doesn't provide support for the payment app, who would you ask if it was a deal breaker for them and refused to become your customer, not giving you anybof their information ?

Re: Data will not tell you what to do

#22
post #16

Earlier quoted context omitted.

Much of A/B testing is far deeper than the color of buttons. How much faster can we process payments through provider A versus B in different countries around the world? If we offer insurance after checkout, do we convert more than offering it before? What ranking algorithm of skus leads to the highest conversion?

And what does any of that have to do with finding the right services or products for the right customers? Does a customer care if you shave off 2% of the final cost or do they care about having world-class customer support? Does a customer care if a product has a higher conversion rates or if it is the product they were looking for in the first place? Does a customer care more about how long payment processing takes…

We need a new "appeal to customer" logical fallacy. Talking to the customer is not a panacea for running a business, and the failed company graveyard is full of products that "delighted customers" but still couldn't cut it in the long wrong.

Part of running a business is having to explain to your boss how you spent millions of dollars, and building confidence that you're making sound decisions and not just shooting from the hip. Many times that will mean making decisions in the best interest of the company over the customer, and there's nothing wrong with that.

There's nothing perfect about A/B testing, and like any tool it can do both good and harm. But when I have to explain to my boss about how I'm spending their money, there's a limit to how much lip service I can play up about the customer journey before I have to put my money where my mouth is and demonstrate that I'm putting their cash to good use. A story that includes A/B testing along with qualitative customer research is better than a story that just includes one or the other.

Re: Data will not tell you what to do

#24

I've never worked at a company where we were anywhere close to being able to A/B testing on customers. We just always shot from the hip. I think if you are doing that kind of testing may e you've run out of helpful ideas? Talking to real customers and helping them solve real problems is really potent. And you can get more than just the color of a button. You can get the direction your company needs to go for months.…

In my experience data often becomes the “decision argumentation” role which used to be filled by external consultants from E&Y and similar. Which is both good and bad, because data shows the past and that doesn’t necessarily predict the future.

Data can be very helpful though. We pull data from the public company records which show earnings to find possible investors. Then we combine that data with our sales data from HubSpot and Microsoft CRM (don’t ask me why we have both) as well as our internal sales systems. Which provides good data points for our sales department when deciding which potential investors to focus on, and shows them how much they’ve already “bothered” people. 10 years ago all of this was basically done by hand, now it’s mostly automated. Which sucks for the data researchers, but since the majority of those used to be unpaid students who now get to actually work on something more related to their studies, it’s mostly a win-win.

Where data doesn’t really help us is in marketing. Exactly because it’s showing us the past, and while that can be useful, it often hasn’t been very helpful in deciding how to do future campaigns. I imagine a lot of this is also true in other fields which produce content for human consumption. I guess in some areas it will be, but on most “creative” fields the data won’t necessarily show you what people will find “fun” or “interesting”. I think Hollywood, big gaming companies as mentioned in this article and others are sort of struggling with this. Thar is just my guess though as I only have experience with how our marketing department has come to the conclusion that while data is a good measurement of the success of various initiatives it’s not very useful in helping decide what sort of campaign to run next outside of which channels are the best focus, and even then, that also changes over time.

Re: Data will not tell you what to do

#25
post #3

Good insights. Before the term was bastardized, then consumed, by Machine Learning, the experimentation component was considered the killer delivery by data scientists (putting the _science_ in the term). Now, most folks assume MLE := DS, rather than MLE ⊂ DS

OT: there's actually a ≔ symbol, so you could write MLE ≔ DS if you wanted to.

Re: Data will not tell you what to do

#26
Another point to support the same idea is data can be falacious.

For instance, you are making a pretty advanced 3D web app, and notice in your analytics that your userbase is only chrome and safari users.

An easy conclusion is to focus your testing on those two platforms, or maybe even drop support entirely for Firefox and Edge by using some webkit specific API.

A not so easy conclusion is the experience might be so bad or buggy on a non-webkit browser that anyone who tries the app in those just gives up on it.

The reasonable truth in this case? You should use standard browser distribution except if you're operating in a specific market, it might also be perfectly fine to drop non webkit browser if the ROI of developing them is not worth it for your goal etc. All of which does not need data but rather intuition and common sense.

Re: Data will not tell you what to do

#27

Maybe I’m missing something. The goal of an A/B test is to test a hypothesis. Where that hypothesis comes from is irrelevant. Sure you can waste your time testing stupid hypotheses that don’t have a lot of business impact, but that’s beside the point.

I agree. The research part of product development should focus on discovering the fundamental laws of the domain. These are fairly constant and pay off for yeara after their discovery. They also help you get a better intuition for the business you are in.

Hypothesis testing is a great way to discover laws.

Re: Data will not tell you what to do

#28
I think data driven is orhtogonal to opportunity driven and vision driven. With the first, data is used to find opportunities, with the second, it shows you if your strategy to your vision is working or not.

Then there is politics driven development. You want to do something and search the trove of data for data that supports what you are doing. Or you look at the data in a strategy meeting, and then ignore it (seen this happen mostly in board meetings of large companies)

Re: Data will not tell you what to do

#29
post #26

Another point to support the same idea is data can be falacious. For instance, you are making a pretty advanced 3D web app, and notice in your analytics that your userbase is only chrome and safari users. An easy conclusion is to focus your testing on those two platforms, or maybe even drop support entirely for Firefox and Edge by using some webkit specific API. A not so easy conclusion is the experience might be so…

It goes deeper.

People learn over time that complex web apps work badly in Firefox, because developers mostly test in Chrome.

So they don't even bother trying it in Firefox.

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