Cost of correction is a metric that should be top-of-mind for all ecommerce leaders. It answers, “If I make this change and get it wrong, how much will it cost my business?”
Business risk + effort risk = cost of correction
Cost of correction can be broken down into business risk and effort risk.
Business risk is the potential impact on the business. For example, a small change deployed on Cyber Monday may take little effort but have a very high business risk. If something breaks, it could have a huge impact on the business as there are so many sales on that particular day.
Effort risk is the risk of putting a lot of effort into something that doesn’t work out. For example, if it took 1,000 hours to implement a new PDP and it ends up making no difference to any key metrics, those 1,000 hours could have been better spent on an
Leave a Reply