June 24, 2015

Matched Market Testing

Maybe you want to test whether a series of digital strategies work in retail stores. Have you considered matched market testing?

I realize this is an old-school topic. Oooooooooollllllldddd school. But valuable.

Here's the concept. You don't want a customer who received "Strategy A" to stagger into a store where "Strategy B" is being executed, ruining your carefully designed test. So you execute tests within a market ... you test "Strategy A" in Kansas City ... you test "Strategy B" in St. Louis.

Match markets based on a combination of demographic attributes, population density estimates, and merchandising preferences. There are all sorts of markets that naturally pair up with each other:
  • Seattle / Portland.
  • San Francisco / Los Angeles.
  • San Diego / Phoenix.
  • Dallas / Houston.
  • Pittsburgh / Cleveland.
  • Minneapolis / Chicago.
  • Des Moines / Omaha.
  • Baltimore / Washington DC.
  • Charlotte / Atlanta.
  • Tampa / Miami.
Now, things don't always end up that way ... you'll have surprises ... Minneapolis / Austin or Jacksonville / Louisville or Boise / Tucson. Regardless, your target customer and your merchandise assortment, when clustered properly, will yield an appropriate matched market strategy.

Show of hands ... how many of you are executing matched market testing?

How The Great Eight Fit Into This Story

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