ABSTRACT
Loss prevention programs are intended to reduce losses to the retailer while not having an adverse effect on the normal operation of the business. With these two equally important yet opposing goals, there will be metrics that represent the reduction to losses and metrics that represent impacts to normal operation of the business. This chapter explores the processes for conducting experiments that helps the loss prevention professional test and evaluates which programs have the greatest effect in controlling losses. It describes what to do when conducting a test for a loss prevention solution through step by step. The steps include determining what to test and for how long, determining key metrics to track, selecting test and control subjects, sample size determination, conducting the experiment, analysis and reporting of the results and deployment and ongoing analysis. The chapter also describes the considerations when designing an experiment as well as how to analyze loss prevention experiments.
