January 01, 2008

Rapid Test Results

In 2008, I'm going to focus energy discussing how test results and Multichannel Forensics increase profitability, and hopefully decrease customer dissatisfaction. Today, we begin the discussion by exploring the concept behind a project I call "Rapid Test Results".

One of the easiest ways for multichannel catalogers, retailers and e-mail marketers to understand customer behavior is through the use of "A/B" tests.

In an "A/B" test, one representative group of customers receive a marketing activity, while the other representative group of customers do not receive a marketing activity.

The catalog industry uses matchback algorithms to understand multichannel behavior. As most of us understand, matchback algorithms over-state the effectiveness of marketing activities.

Conversely, e-mail marketers understate the effectiveness of e-mail marketing activities when using open rates, click-through rates, and conversion rates.

Therefore, we need to improve the understanding of our marketing activities. One way to do this is to create and analyze more "A/B" tests, often called "mail/holdout" tests.

It can be very easy to execute these tests.

However, we don't always have the resources necessary to analyze and understand the test results.

If you are an executive who falls into the latter category, I have something for you. It is called "Rapid Test Results".

For my loyal blog readers, executives, and current customers, I have an inexpensive proposal just for you. The Rapid Tests Results Analysis Document outlines an inexpensive project that gets you results to the tests you executed, within just a few days of sending your information for analysis purposes.

If there's one thing I learned in 2007, it is that e-mail and catalog teams are minimally staffed! And yet, the information that can be gleaned from tests executed by e-mail and catalog marketing teams can shape the future direction of your organization.

So if any of the following criteria are met by your organization, please consider a Rapid Test Results Project:
  • You are an e-mail marketer who believes your e-mail campaigns drive more sales and profit than you can measure via standard metrics like open rate, click-through rate, and conversion rate.
  • You are a catalog marketer who wants to truly understand if multichannel customers respond to catalog marketing, and want to truly learn the impact of catalog marketing on the online channel.
  • You are a catalog marketer who wants to reduce catalog marketing expense (and benefit the environment) by limiting contacts to internet customers.
  • You do not have the analytical resources to analyze test results quickly.
  • You do not have the systems support to measure test results by different customer segments, across different channels, or across different merchandise classifications.
  • Your executive team does not understand the constraints and limitations that prevent your team from analyzing all of your tests in a timely manner.

Profit per New Customer

It's common for folks to measure cost per new customer. Total Marketing Cost = $10,000. Total New Customers = 130. Cost per New C...