April 08, 2018

Test Results

Surely you execute test designs similar to what is observed here, right?
This test was run over a six month period of time.

Customers were randomly selected, and then placed into one of nine test panes.

Test Panel 1 = 0 Emails, 0 Catalogs (for the next six months).

Test Panel 2 = 0 Emails, 4 Catalogs.

Test Panel 3 = 0 Emails, 8 Catalogs.

Test Panel 4 = 50 Emails, 0 Catalogs (for the next six months).

Test Panel 5 = 50 Emails, 4 Catalogs.

Test Panel 6 = 50 Emails, 8 Catalogs.

Test Panel 7 = 100 Emails, 0 Catalogs (for the next six months).

Test Panel 8 = 100 Emails, 4 Catalogs.

Test Panel 9 = 100 Emails, 8 Catalogs.

At the end of six months, total demand amounts are listed above.

Again, you execute tests like this, don't you? How else would you know the "optimal" combination of email campaigns and print campaigns to send to a customer?

Tomorrow, we evaluate profitability.

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...