The world is in constant change, and with the technological developments happening right now, it feels like it’s changing faster than ever. With that reality, a question presents itself: As a business, how do you adapt fast enough to stay relevant and competitive?
Because to stay relevant and competitive, you need to be able to innovate fast – and to act even faster.
Part of the answer lies in rethinking your view of marketing. An experimental approach could be what takes your business to the next level. Testing ideas fast at low risk allows you to avoid expensive mistakes and be able to focus on finding what actually works instead.
By combining a ‘fail fast’ mentality with an investment approach inspired by venture capitalists, you’ll be able to prioritise smarter, act more efficiently and achieve faster results.
In this article, we’ll show you how to create a culture where experimentation and fast learning help you make better decisions and get the most out of your marketing efforts.
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Key takeaways:
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Fail fast, fail forward
Many companies hesitate taking risks because the fear of failure can be overwhelming. However, this approach can ultimately hinder innovation and keep you stuck in old patterns.
If you want to get ahead of the competition, you need to create a culture where failure is seen as part of the process – not as something to avoid at all costs.
This approach is known as failing fast and failing forward. It’s about understanding that there will be failures, but to keep moving forward – no point in wasting time.
‘Failing fast’ is about testing new ideas fast and with minimal risk. This means encouraging your team to try out new channels and strategies without the pressure of huge investments or the expectation of immediate success.
The important thing is to learn fast so you can quickly identify what’s working and what isn’t.
The benefits of experimenting:
- You’ll quickly discover which tactics and channels have potential and avoid wasting time and resources on activities that aren’t paying off.
- You’ll create a dynamic, learning-focused culture where your teams feel safe trying new things and adapting as they go.
- Your approach will become more agile and robust, which will make it easier to navigate a market under constant change.
For example, instead of blowing big budgets and resources on testing TikTok as a new marketing channel, start with a smaller experiment – e.g. a week with a limited budget and a few creative videos.
Analyse the results quickly. If the channel shows potential, scale up your efforts. If not, you can easily move your resources to a more promising channel.
This approach allows you to experiment effectively at a low cost – and simultaneously ensure that your marketing efforts are always moving forward.
Think like a venture capitalist: Small investments – big opportunities
On the topic of our last point, at one of our latest Pleo Beyond events in London, James Keating, CMO of Pleo, introduced an interesting idea about viewing your marketing initiatives as investments.
Instead of having all your resources tied up in one strategy, you should start small, test more ideas and only focus on the ones that work.
This approach – inspired by venture capitalists – allows you to minimise risk and maximise the potential of your marketing efforts.
Watch James Keating explain the idea and importance of the ‘fail fast’ mentality. [Timestamp: 14.46 - 15.02]
How to do it:
- Start small: At first, allocate a few limited resources to new ideas and experiments.
- Scale fast: When you notice something paying off, increase your investment and maximise your ROI.
- Drop what isn’t working: Don’t be afraid to cancel efforts that aren’t delivering the results you want. It’ll free up resources for more promising projects.
Practical steps:
- Create a ‘test and scale’ process where experiments can be quickly evaluated and adjusted.
- Prioritise experiments with the potential to deliver a high ROI if they succeed.
- Evaluate your results objectively and quickly to make data-driven decisions.
The benefits:
- You reduce risk by only scaling up strategies that have already proven to be valuable.
- You keep your focus on ideas and channels that show the most potential for growth and success.
Let’s say you’re testing three different marketing channels – e.g. Facebook Ads, LinkedIn and TikTok. Start with small budgets for each channel to measure performance. After testing for a week, you notice LinkedIn outperforming the other channels in engagement and conversions. At this point, you scale up your LinkedIn budget and cancel or reduce your efforts for the two other channels.
Watch James Keatling talk about how Pleo uses this mindset to test new channels – and how TikTok turned out to be the most successful channel for several months. [Timestamp: 15.42 - 16.10]
You might also be interested in: ‘Guide: How to create a marketing budget’
eBay, Nokia and Blockbuster: Why innovation is key
Talking about how fast the world is changing may sound a little cliché. Even so, it’s true – and if you don’t keep up with the changing market, you’ll get left behind. Companies that don’t make room for experimentation and new strategies risk stagnation and loss of market share.
To support that claim, let’s take a look at some examples that show just how important it is to innovate – no matter how established your company is.
eBay, a pioneer of online auctions, lost their lead when the platform didn’t adapt to meet its customers’ changing needs. Competitors like Amazon started offering more flexible shopping experiences, and eBay was caught in a static business model that couldn’t keep up with the market pace.
Watch Jo Muncaster, Head of Finance at digiLab, talk about the importance of adaptability. [Timestamp: 15.06 - 15.41]
If you’re old enough, you probably remember Nokia and Blockbuster.
Both companies once dominated their respective markets, but lost their relevance because they didn’t prioritise innovation and adapting to new trends.
Nokia, once the leading mobile brand in the world, fell victim to their own success. They had the technology, and they dominated the market – but they underestimated the smartphone revolution and the value and potential of software like Android and iOS. They failed to invest in innovation, and Samsung and Apple overtook them fast.
Blockbuster may be the most well-known example of what happens when you ignore the winds of change blowing through the market. In the early 2000s, Blockbuster dominated the video rental industry, but they responded to the advent of streaming services too late. Netflix offered flexible, digital solutions while Blockbuster clung to their traditional business model – and in the end, the company filed for bankruptcy.
So what can your company learn from this?
Making room for innovation isn’t just about great technological leaps. It’s about constantly being willing to challenge the status quo through small experiments to test new channels, tools or messages that can be evaluated and adapted as you go.
The freedom to fail and learn fast ensures that your business can respond to new trends and changing consumer behaviours just as quickly.
By learning from the mistakes of others – such as eBay, Nokia and Blockbuster – your company can build a stronger foundation for future success. Make sure innovation isn’t just something you talk about, but something you practise actively. Make room for experimentation, and reward those who are bold enough to try something new. It’s the only way to remain relevant and competitive in a market that never sleeps.
