How Plick started using A/B-tests to increase retention & revenue
Summary
Going after a new investment round, Marketplace Plick felt an urgency to understand and improve user engagement, retention, and monetization. CEO Jimmy Heibert was convinced that the only way to learn fast enough was to start using experiments in their product development and he asked scilla.studio for help to get it right.
The Result
48 experiments shipped during 6 months of collaboration
+ 13% increase in Revenue from successful experiments
67% of the experiments did not work. Without testing them, they would have been fully built and implemented. (Imagine the cost of having implemented all these "bad ideas"!)
“For me, working with product experiments is not optional. It’s a must! With every dollar we invest in acquiring a new user comes a high risk of losing that new user within the first few days. Until now, this has been a gaping black hole for us, but with scilla.studio’s help, we no longer waste time and money on meaningless guesswork.” (Jimmy Heibert, CEO)
What we did
KPIs: We identified what user activities to improve that would have a causal impact on retention and revenue growth;
Built a Growth Model - a tool to forecast how different bets will impact long-term growth
Mapped Growth Loops to identify growth opportunities
Technical requirement and QA for data collection and A/B-testing results
Trained engineers, designers, and data scientists on how to run meaningful A/B-tests
A/B-testing Way of Working as a part of the development process
“One of the most tangible differences between working with validating hypotheses instead of shipping fully built features is how fast we can get new experiences in front of the users to learn what works. Build as little as possible, let the users experience it and measure the outcome.” (Jimmy Heibert, CEO)
What's next for Plick?
“We’re in a growth phase and will expand the organization significantly, so we’ll scale this way of product development as the organization grows. Coaching Sara was a great investment since we’ll be able to run this process on our own.” (Jimmy Heibert, CEO)
“Experimentation is now a fully integrated step in our product development process. The mindset of always validating what we believe, not only on the product team but the entire company.” (Sara Collin, Product Manager)
What’s your most valuable learning?
“I thought I was going to say that the most important impact would be the test results, but honestly, it’s the shift in mindset and how we make decisions. It's not ‘sexy’ talking about organizational changes and mindset, but I know for sure that every decision we make from now on will have a more significant effect on our key metrics, and this can always be traced back to us making this shift in how we work.” (Jimmy Heibert, CEO)
Who do you recommend to work with scilla.studio?
“Any company that believes that retention is an important driver for business growth should get in touch with scilla.studio ASAP!” (Jimmy Heibert, CEO)
