How Experimentation Can Make Your Company Money

With fierce competition and high customer expectations, it’s not wise for businesses to base decisions on a hunch.  As Jonas Alves, co-founder of ABsmartly, says, you should “Test ALL changes!” using experimentation as an essential tool for driving growth and profitability.

Experimentation shouldn’t be just about optimizing buttons or headlines but about helping teams to learn constantly, and make data-backed decisions. Every idea should be tested for real impact. 

To boil it down to the brutal reality of economics, can experimentation actually make your company money? And, if so, how? 

1. Stop Losing Money on Bad Ideas

Most ideas look great to begin with, until they go live. Risk reduction is one of the core principles behind experimentation. Without A/B testing, companies often deploy changes that may unintentionally adversely affect performance. By testing changes before rolling them out, businesses can prevent revenue loss occurring due to such misinformed decisions.

2. Focus on What Works

Just as experimentation can help avoid costly mistakes, it also helps you find and amplify your winning ideas. Jonas notes that some of the most successful companies he’s worked with used experimentation not just to validate ideas — but to uncover unexpected growth levers.

Example: Microsoft Bing: A simple A/B test on the color and placement of ad titles generated an incremental $100 million in annual revenue. The test was small, the gain was massive. (Source: The Surprising Power of Online Experiments” by Kohavi & Thomke (Sept–Oct 2017 HBR issue))

3. Optimize for Profit, Not Just Conversion

Many companies focus A/B testing on superficial metrics: click-throughs, engagement, or form completions. But it is important for teams to dig deeper. “The right experimentation platform helps you to measure long-term metrics like customer lifetime value, retention, and profitability, not just short-term wins.”

With experimentation tools, teams can connect experiments to deeper KPIs, ensuring they prioritize initiatives that drive sustainable financial results.

4. Speed Up Innovation, Safely

The fear of making mistakes is often the biggest bottleneck to innovation. A robust experimentation culture allows teams to launch bold ideas in a controlled environment. When failure is isolated and measurable, companies can take more calculated risks and learn quickly, leading to more breakthroughs over time.

“In high-growth companies, the real cost is opportunity cost,” Jonas says. “Every month you don’t test is a month you don’t learn.”

5. Make Data-Driven Decisions at Scale

It is particularly important to democratize experimentation, and thereby put the power of testing into the hands of product managers, and developers. By making experimentation available to many within the business, it enables organizations to run hundreds or even thousands of experiments per year.

More tests mean more insights. More insights mean better decisions. Better decisions mean better financial outcomes.

6. Build Trust and Alignment Across Teams

Experimentation removes ego from the equation. Teams consume the same data, reducing internal debate and alignment issues. With a clear, experimentation-driven culture, businesses can move faster and more cohesively, thereby reducing friction and wasted time.

And time, as any CFO will tell you, is money.

Start Experimenting, Start Earning

The ROI of experimentation isn’t just theoretical, it’s proven, measurable, and accessible. Companies that adopt a culture of testing:

• Avoid expensive mistakes

• Capitalize on hidden opportunities

• Innovate faster

• Make smarter, more aligned decisions

• Ultimately, drive more revenue and profit

Every day you don’t test is a day you’re guessing. And guessing is expensive.

Learn more at ABsmartly.com or request a demo of our tool.