ABSTRACT
A major advantage of digital entrepreneurship is the ability to learn from experience quickly and cheaply in the search for a viable business model. With a prototype site, web analytics, and a digital business design, digital entrepreneurs have the tools necessary to test new business ideas. Chapter 12 discusses how to learn from customer data and assess how well a digital business experiment is working. Google Analytics offers acquisition, behavior, and conversion reports to examine each part of the ‘ABC’ process. This chapter also introduces A/B testing as an important experimental tool. In an A/B test, visitors are sent randomly to different versions of a prototype in order to evaluate which version leads to a higher conversion rate. The third major milestone in digital entrepreneurship is an updated digital business design and prototype based on the data from early experiments. The goal is to make the original digital business idea more effective, change it, or abandon it gracefully with lessons learned.
