Making Revenue Focused Bets Like a VC
What’s the best way to run experimental campaigns in your company? With campaign experiments. anything is possible, but that’s partly why many companies are so risk-averse.
Guillaume Cabane, Co-Founder of HyperGrowth Partners, and Ben Labay, CEO of Speero by CXL, joined this session to discuss experimentation and why you should get more comfortable placing your bets. Guillaume’s an expert in helping B2B companies build winning campaign strategies. He lets us in on some of his success secrets in this video.
Learn how to deal with your experimental campaigns the right way, what metrics to track, and how to get comfortable with risk.
Here are some of the key takeaways:
⚡️ Key takeaways
Takeaway 1: The three types of experimentation
As Ben explains, there are three “flavors of experimentation” to familiarize yourself with. They are:
- Iterative optimization – This is a focus on margins. When you do crazy volumes, small changes can cumulate, and you can stack margins on top of each other.
- Net new functionality – This is when you’re moving to more of a ‘react’ framework. It’s a big part of experimentation where you don’t know what’s going to happen.
- Disruptive experimentation – This is all about where to place risk and what the cost is of doing so.
Takeaway 2: Tackling risk aversion
If a team is experiencing campaign failure after campaign failure, where does it lead? Naturally, the company becomes risk-averse. It makes sense. No one wants to launch Experiment Number 4 after three big failures.
But risk aversion comes with its own problems. Guillaume’s solution is to have a separate team that is naturally risk-prone, where failing is part of the job. By failing, you can learn valuable lessons on what will work next, which brings you closer to growth in the long run.
Takeaway 3: Democratizing experimentation
While revenue is a key part of experimentation, there’s also a cultural side to it. It’s about the people as well, after all. One thing that Guillaume does is help to democratize experimentation across the board.
One way he does this is through a simple form that anyone in the company can enter ideas and projects into. The growth team can then clean those ideas up, sort through any duplicates, discuss, and prioritize them.