Testing 1-2-3
By: Andrea Bell |
09.06 |
Direct mail continues to be a popular channel for acquiring new customers,
generating leads, prospecting, retaining and cross-selling current
customers. For any direct mail campaign to be a success, you
have to have the winning combination of format, copy, creative, offer
and list. If there’s one thing I’ve learned about
direct mail, it’s test, test, test. Before you even think
about testing, you must first be able to measure the response and return
on investment (ROI) of your current direct mail efforts. If you
are generating leads and acquiring new business, tracking those leads
and sales to each marketing dollar spent can justify spending future
marketing dollars using the same direct mail. Tracking your direct
mail to a specific mailer or promotion can seem impossible at times,
but it’s essential to bring you closer to that winning direct
mail combination and higher ROI.
For some, this is a simple no-brainer. For others, it is completely
foreign. Many ask, “what do I test and how do I test?” For
more conservative marketers, I suggest taking baby steps by testing
one element at a time to more accurately define the variable that takes
you closer to a higher response or sales rate. For example, let’s
assume you have a direct mail piece that gives you a 1.5% lead response
rate (also assuming you have a method in place for tracking and measuring
your response). By continuing to mail the same piece over and
over, you may reach stagnant or declining response. Finding elements
of your piece to test is essential.
Test your copy. Use your control (the direct mail piece you
have been currently mailing over and over) and test stronger or weaker
call to action copy. Test your list. Maybe you have been
sending your message to the wrong audience. Use demographics
and psychographics to aid you in your segmentation strategy. Test
your format. If postcards aren’t bringing in the response,
switch to a more dimensional format or card stock. Of course
the cost may be greater, but your cost per response may also decrease. Test
your creative. By using different color palettes, graphics, stock
photos and emphasis, you can evoke a different feel to your direct
mail. Test your offer. What’s in it for the consumer? Why
should they do business with you? Test product offerings, limited
time offers and sales such as “buy one get one free”. Test
the timing. People respond more or less at different times of
the year. Test the same mail piece in different months or different
quarters. You cannot assume you will get the same response to
a mailing sent in January as you would if sent in July. If your
product is seasonal, take that into consideration as well.
Now that you have something to test, how do you go about executing
it? Split your mailing list in half by using an Nth-ing strategy
(random sample). If you are using multiple sources for your list,
be sure to combine all sources before splitting it in half and taking
your random sample. You can do an A/B testing strategy where
A is your control mailing list and B is your test mailing list. Let’s
say you have a total circulation of 10,000 mailers. You will
mail 5,000 of your control and 5,000 of your test creative to the same
list randomly selected. Remember to use different coding and
toll-free numbers to be able to effectively track and measure your
results. If you are using a lead generation strategy, it is wise
to offer consumers the option to call, click or write to get in contact
with you. With this strategy, you must ensure that your phone
number (call), website or landing page (click), and BRC (write) have
different coding to distinguish the control creative (A) from the test
creative (B).
Having the ability to measure your test results is crucial to finding
your direct mail winner. Don’t throw all your eggs in one
basket in hopes that what you’ve been mailing over and over will
someday work. Test new copy. Test new formats. Test
new creative. Test different lists. Test different offers. Test
the timing. Don’t continue mailing without incorporating
a test against your control. Test, test, test is the message.
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