Model 8: More Complex (and fewer lies...)
Model 8 is simply an exaggeration of how many models it will take between the first one and the one you finally settle on for your insight. (It may take even more than 8) The point is that you continue to expand the variables to explore different channels or avenues affecting the results. Between each iteration, ask yourself: “What am I not learning in this model? What needs to be built to answer the next set of questions and answers?" You evolve the model into a more complex (and therefore, fewer lies) version. You will start to get into the customization of variables based on your business and you will begin making these metrics come to life.
Build complexity as you iterate.
The above graph illustrates the relationship between insight and complexity for modeling. Insight is needed initially. Once a deep understanding exists, complexity can increase and provide even further valuable insight.
The layers and variables you choose to add to your model should be a direct reflection of the business' needs. For example, you may have some specific areas you want to test so you would add them to the variables within the equation of the metric to monitor the channel activity. Perhaps, there are different customer segments you’re curious about that you want to begin tracking. The good news is that a modeling system gives you the ability to explore and understand more deeply what is happening.
It's important to note that you should only be adding layers to the model if you have insight to gain into a specific area. Each layer dimension will add complexity to your model which overtime will diminish the lies (or rather, lack of clarity) from the initial model. In the process of adding these dimensions you will learn what's needed to optimize your business so that you can get the highest returns from your customer acquisition efforts.