July 30, 2013 â™¦ 2:00-3:30 pm ESTIf your strategy adjustment doesnâ€™t have a predefined way to measure the results, then itâ€™s not really a test. So often we hear revenue managers say that theyâ€™re testing a new strategy, but upon probing to understand the details of their â€œtest,â€ we often realize that theyâ€™re not really testing anything. Theyâ€™re merely doing something different, which may or may not produce better resultsâ€¦and weâ€™ll never know for sure if it did.
Without a clearly defined plan to measure the results, doing something different with your rate or inventory strategy is not really a test. To be a test, the change in strategy has to have specific steps, parameters, timelines, and methods of measurement in order to determine if the action produced the desired results. Simply put, the test has to have a measurement to really be called a test.