Apparently this man had been quite wealthy before wasting his fortune on things that did not matter. One day this gentleman saw a swallow perched on a branch. He immediately assumed that spring has arrived so he sold his coat.
The next day the weather returned to the winter cold. The swallow froze to death. The man, now shivering, saw the swallow lying dead on the ground.
"Thanks to you I am freezing," exclaimed the spendthrift.
When testing new concepts or products businesses often make the same mistake as the spendthrift. A test of a single store will not produce reliable results.
Look at it this way, suppose a spaceship exploring planet Earth landed in the playground of an elementary school. They would report back to their mother planet that earthlings were approximately 3 feet tall. If a second spaceship was sent and it landed on the court of the professional basketball team they would report back that earthlings were almost 7 feet tall. Neither of these reports taken separately would produce any valuable information. Nor would the two reports create anything by confusion.
Business implication Whether a new store layout or new product roll-out, test marketing requires a cross sampling of demographics in order to make an informed decision to proceed in the future.
As Aesop established hundreds of years ago with his timeless fables we remember words best when we become engaged in a story. Max has compiled an anecdotal story collection designed to generate “ah- ha” moments during coaching sessions, presentations, and meetings. Click here to see more.