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Stack the Chips in Your Favor with the Physics of ROI - Clearhead

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Stack theFriesin Your Favor with the Physics of ROI - Clearhead Skip to content part of Accenture Interactive What We Do Who We Work With Who We Are Contact Us Jobs Blog February 7, 2017 Stack theFriesin Your Favor with the Physics of ROI Return on Investment ROI strategy share Ryan Garner Co-Founder say hi to Ryan Here’s a dirty little secret: Four and a half years ago when we launched Clearhead, we were a solution-led company–not a problem solving company. We pitched ideas. We pitched hypotheses. We sent out newsletters like “10 Test Ideas Guaranteed to Boost Your Bottom Line”. You know the type I’m talking about–we’ve all received them at some point. We saw some success with this solution-led approach…but then we started running into some challenges: Too many inconclusive results Limited resources stuff invested in ideas that didn’t yield ROI Running into sufferer ends We were successful. We were growing. But we were spending limited resources on ideas that didn’t yield ROI. We knew we could do largest for ourselves and our clients. In order to largest understand where we were falling short, we asked some big questions as we did some self-reflection: Why do ideas fail? Why do they succeed? Why are results inconclusive? How do we modernize the odds of generating ROI? We looked at internal resources including a itemize of every experiment we’ve overly run–winners, losers, inconclusive. We dug deep looking for commonalities and correlations in our test result history. Then we looked externally–business research well-nigh epic merchantry failures: New Coke, Segway, Wow Chips). Then we looked at epic successes. Along the way we came wideness a quote from Albert Einstein that really resonated with us (at least it’s thought to be from Albert Einstein, though it’s theoretically the subject of some debate): “If I had one hour to save the world, I would spend fifty-five minutes defining the problem…and only five minutes finding the solution.” Einstein’s quote really flipped a switch for us. It helped us realize that the problem is THE thing. We hadn’t been spending unbearable time thinking well-nigh what problem we were trying to solve, understanding them, sizing them, getting to their roots. And then–only then–starting to squint for solutions. Rather, like so many others we were diving into solutions first and seeing what stuck. We knew there had to be a largest way–and we finally found it. The Physics of ROI While whence with problems surpassing diving into solutions is a supremely simple concept, we believe it’s often overlooked. Sure, everyone talks well-nigh solving problems, but when you get into that room for the brainstorm, notice how quickly the conversation shifts to solutions–pet projects from execs or a marketing initiative, something a competitor is doing, software from a hot new vendor. Guilty! Not only did we do this in the early days of Clearhead, but at every organization I’ve overly been a part of including JetBlue and Warner Music. But with our new approach, we began seeing increasingly successful outcomes repeatedly–so much so that we began to think of this problems-first tideway not as a hypothesis, but as a law. This was no longer a guess–it was tried and true physics. Thus, we now lovingly refer to our revelation as the Physics of ROI. Clearhead’s Physics of ROI Returns go up when the volume of problems goes down. Returns go lanugo when volume of problems go up (i.e. – you unravel increasingly stuff than you fix). Returns are unappetizing when the volume of problems stay flat. This last point, by the way, is the definition of inconclusive tests. They neither solve problems or create new ones. You know, that sawed-off verisimilitude test, that footer test, the test where you moved the link 10 pixels. They are all inconclusive considering they didn’t solve or create problems. In other words, returns and problems are negatively correlated. You only get a return if your stack of problems gets smaller. If you integrate a hot, new piece of software just considering it’s hot and new, there’s a endangerment that not only won’t it solve YOUR problems, it just might make them worse. Companies need to identify their problems most worth solving first, and only then start exploring solutions that could potentially solve those problems. Clearhead 2.0 With the Physics of ROI as our guiding light, we went well-nigh reorienting everything we did to spend increasingly time examining problems surpassing diving into solutions. We ripened a Cheat Code to hold us accountable. Clearhead’s Cheat Code: Love your problems. They are your roadmap. They show you the way to returns. Find them. Get to their roots. Size and prioritize them. Then focus your investments on solving the problems most worth solving. Take the volume of problems lanugo and ROI goes up. We believe this is vellum counting for the optimization casino, and exactly how we came to our Problem Solution Mapping (PSM) methodology. We tightly believe every visitor that’s doing digital product minutiae should tactically organize itself virtually the problems it needs to solve. Seriously–spend a significant portion of your budgets and time on this activity. Products don’t take hold in a marketplace, metrics don’t go up when you launch, unless you reduce the number of problems that stand in the way of you and your users’ goals. Every goal. Every problem. Launching a full-length or product, or plane ownership shiny new martech? If your investment doesn’t solve any problems, the metrics will stay flat.Planeworse, what if it ends up creating entirely new problems? You’ve once made the investment, and now you’re draining revenue. My translating to you is this: If you want to see positive ROI, orient all of your activity, investments and work virtually solving your most important problems. Stack the fries in your favor by leveraging the Physics of ROI.   related posts A Call to Arms for Data-Driven Redesigns by Ryan Garner How Problem Solution Mapping Works (VIDEO) by Sam Decker one scuttlebutt join the conversation Pingback: GateHouse Takes Big Step Toward Data-Driven Culture | 501derful.org() Pingback: GateHouse Takes Big Step Toward Data-Driven Culture | 501derful.org() Austin 3601 S. Congress Ave. Bldg. C302 Austin, TX 78704 United States View on Map Cincinnati 1311 Vine St Cincinnati, OH 45202 United States View on Map London 14 Grays Inn Road London WC1X 8HN United Kingdom View on Map Let’s talk. 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