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BEDIRECT
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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BEDIRECT Articles by Andrea Stemm