How to gamble on new ideas without losing big
Brent Niemuth, President/CCO
I just spent this past weekend in Vegas. Nice little getaway. Saw a show, played a few slots, danced with a monkey (don’t ask). But as I contemplated how much to wager at the Blackjack table, it occurred to me that there are no sure bets. Everything in life, and in business, is a gamble. Everything.
I’ve had several phone calls with potential clients recently where they’ve asked, “Can you guarantee me that what you’re recommending will work? I don’t want to invest the dollars unless I know for sure this will work.” The answer is no. I’ve also sat in on meetings where the discussion around the table was focused on eliminating risk. Any risk. It seems like the strategy for today’s businesses is to look for the sure thing. Unfortunately, there is no such thing as a “sure thing” in business.
I get it. As direct marketers, we want as much information upfront as we can get before we make a decision. We want to be informed. We don’t want to place a bet without knowing the odds. We want certainty. So the result of this hesitancy is to do nothing new. Rather than risk failure, we take the predictable route and fall back on what we know. We play it safe. Essentially, we fold.
But the truth is, the companies I’ve witnessed over the years who take a gamble on something new—knowing it’s a risk, but also knowing the payoff could be big—often reap the rewards. Time and time again I’ve seen these “wagers” pay off in big ways. Increased sales, dramatic spikes in prospecting, development of broader audiences.
If you’re uncomfortable trying something new without a guarantee, there are a few things you can do to soften the risk.
Test, test, test
Can you afford to do an A/B test? Can you do a cover test? Testing allows you to dip your toe in the water and see what happens. It can give you valuable insights into what might work—and what might not—before you fully commit to something. But note: Testing is best done over time. One small snapshot may not be enough to see the big picture.
Customer survey
A quick e-survey can reveal all kinds of valuable information. We do them all the time here at J.Schmid. It’s a wonderful tool. Do you want to know what your customers think? Will they be offended by a certain message? Will they love the new design? Ask them.
Social media observation
There are conversations going on every day about our brands, current trends, things that people like and don’t like. We just have to listen in and observe. Want to gather intel before making a risky decision? Use social media.
These are just a few ways that you can lower the risk of trying something new. Change is scary. No one likes to take a gamble on their business. But the companies who are willing to take small risks and shake things up a bit are the ones who are winning. You want a guarantee? Do nothing different, keep doing what you’re doing, stay the course forever, eliminate all risk—I guarantee you’ll lose eventually. To me, that’s a gamble not worth taking.
If you need help navigating change and want to try something new but don’t know how to go about it, we’d love to help. Just give me a shout at brentn@jschmid.com. We want you to win big.
Tags: A/B testing, analytics, Brent Niemuth, customer survey, Social Media