Launching a new business, project, website or simply improving an existing product is a complex and always unpredictable process. A very promising and good idea “on paper” may turn out to be unprofitable in reality. The company will waste time, money and get nothing.
If you want to avoid this situation, it is important to formulate the right hypothesis and understand how it can be quickly and clearly tested in practice before full scaling. A marketing method called HADI cycles is used to solve exactly this problem.
What are HADI cycles A Tool for Testing Hypotheses and Developing Businesses
HADI cycles are a methodology that allows you to explore a new hypothesis. The idea is to test its feasibility and effectiveness in a test format on a small scale before full implementation in the business system.
The main goal is to immediately select the most promising one from a variety of different hypotheses. This helps to create an effective mechanism and conditions for achieving the set goals and minimizing risks. Most often, the tool is useful in the field of project management, product development or innovation implementation. It consists of four main stages:
This cycle of HADI hypotheses is endless. Once the team has tested the first hypothesis, the next one is usually set, and the employees test another hypothesis.
These lists are usually maintained by the organization of bulk sms service. Hospitals or enterprises, and can be reused to quickly reach individuals in emergency situations. Our database is designed to grow as certain businesses grow. As demand develops, we can provide additional functions and capabilities to support growth.
HADI cycles are often and mainly used in the field of marketing. Directions of specific useful research may vary.
Applications of HADI cycles and benefits for business
HADI cycles are a tool that is useful in many areas of marketing at different stages of the organization’s life cycle. It is used to conveniently track the effectiveness of email marketing, SEO promotion, contextual advertising, and so on.
Startups and small Developing Businesses
For startups and small businesses, the HADI cycle is a particularly valuable tool. Its flexibility, speed, and ease of implementation allow startups to:
- quickly test your ideas (for example, a new product or type of advertising);
- find your target audience;
- increase conversion rates;
- find different errors in hypotheses and make optimal decisions.
In fact, in the case of small businesses and startups, HADI cycles and successful work with them affect the company’s profit indicators.
Large companies
HADI cycles are also valuable for large companies with a large structure and an established position in the market. However, in this case, it is not about testing global hypotheses of the entire organization. Rather, it is about research and testing of a new product that the company wants to launch on the market.
For example, sellers can use HADI cycles to create an order processing system, test hypotheses about marketing strategy.
Elements and structure of the HADI cycle – a complete analysis
Understanding the essence of the HADI cycle comes down to studying its components. As mentioned above, the HADI cycle consists of four elements, stages or sequential steps that form the final result. Let’s look at how the HADI cycle and each element works in more detail.
1. H — Hypothesis
The first and most important element of the entire cycle. A hypothesis is an assumption about what changes or actions can lead to the desired results.
The purpose of the hypothesis is to choose the direction of the experiment. The result of the entire analysis will depend on the correct assessment of the situation and the formulation of the hypothesis.
For example, “ If you reorganize the products on the store shelves and place more expensive and high-margin products at the eye level of the visitor, and cheaper (less profitable) ones on the very top or bottom shelves, then the expensive products will start to sell better.”
2. A – Action A Tool for Testing Hypotheses and Developing Businesses
The second step of the cycle is the actual testing of your hypothesis and development of actions. The task of the manager and the team is to start implementing the plan and ensure that the purity of the experiment is not violated.
In the process of testing and developing a hypothesis, you need to perform certain actions that you planned from the start of the project. Because other actions or parallel testing of another hypothesis that suggests a similar result can affect the final conclusions.
3. D — Data (Data collection) A Tool for Testing Hypotheses and Developing Businesses
The third stage is about collecting data. The information you receive can be both qualitative and quantitative. However, it is better to use visual quantitative data. You should clearly understand how and to what extent a particular metric has changed.
In marketing research, this is fairly simple. For example, you can track the number of views on your ad, conversions before and after the experiment, and so on.
4. I–Insights A Tool for Testing Hypotheses and Developing Businesses
The final step is to analyze all the data and what is the effect of thin content on seo summarize the results of the experiment. Here we get the answer to the question: did the hypothesis work or not. Analysts confirm or refute the hypothesis.
If, based on the results of the analysis, you understand that the new method is effective, if the hypothesis works, then you can begin to implement it fully on a company-wide scale.
When the result is unsatisfactory, further decisions are usually made based on the analysis about whether to terminate the test or to evaluate the situation and make adjustments to the hypothesis itself to consider it from a different angle.
Examples of using HADI cycles
Now let’s give examples of the implementation of the standard HADI cycle. How to test a hypothesis or several hypotheses at once.
Example 1 – Advertisement for a computer and technology technician
Hypothesis: if the advertisement states that the first visit and diagnostics of a faulty device is free, then the number of calls or clicks on the technician’s blog or social network will increase by 5%.
Action : adding information to the advertisement about free visits and diagnostics of computers, televisions and other household appliances.
Data: Conversion increased from 6% to 12%.
Conclusions: the hypothesis is correct. Now it is possible and necessary to add information about free diagnostics to each ad.
Example 2 – Landing Page Button Color aub directory If you change the color of the “Buy product” button on the landing page from red to green, the sales volume will increase by 10%.
Action : change the color of the button itself for one of the pages.
Data: It turned out that the green color is less noticeable against the background of the rest of the landing page information, and click-through rates decreased.
Conclusions: the hypothesis is incorrect. You need to return the button color or continue experimenting further.
How to work with HADI cycles correctly
HADI cycles are a methodology that requires a systematic and thoughtful approach. It is important to adhere to certain principles and rules when working with this tool. Only then will you be able to use it most effectively and achieve your goals. There are several basic principles that can be identified :
- Clarity and precision. The hypothesis must be specific, clear, measurable, and unambiguous .
- Sequence. The order of the steps in the cycle must not be violated, otherwise the final results may be incorrect .
- Continuity. HADI cycles assume an iterative approach. That is, a sequential repetition of the cycle of experiments and analysis of results. As soon as you have completed one check, you immediately need to put forward a new assumption and start implementing it. Create several hypotheses for one metric and test them step by step .
- Transparency. Working on HADI cycles requires close cooperation between different departments and team members. Open communication helps ensure that the cycles are successfully implemented and the set goals are achieved .
- Evaluation and feedback. It is important to regularly evaluate the results of each cycle and learn from the experiments. For example, do not test hypotheses that are obviously not feasible. Feedback allows you to improve your strategy and approach to working with HADI cycles in the future.
