Adding DRTV to the Mix
Now you are ready to begin testing. A typical television test will run between two and four weeks and include eight to 10 different networks and stations. A reliable test can be conducted for $40,000 to $75,000 including both production and media costs. Be sure to review your results daily and be open to testing price points and offers until you find the combination that works best for your product.
A common mistake made by companies new to DRTV is to insist on immediate profitability as the only benchmark for success. While generating profitable front-end sales is a desirable goal, you should also allow some leeway for the lifetime value of your new customer. Each new customer potentially represents an ongoing incremental revenue stream for catalog and direct mail marketers. How you capitalize on new customers and leads and estimate the present value of each is a critical part of your DRTV plan. Insurance companies understand this well. Many are willing to invest as much as $500 to acquire a policyholder based on his or her estimated lifetime value.
Finally, successful DRTV campaigns require scrupulous attention to detail. Every element of your program requires painstaking management, review and coordination with every other element. Be sure to pay particular attention to call center selection and operator training. Remember these folks are the first people that your new customer will come in contact with. And be sure to process and ship orders as quickly as possible to avoid returns and/or losing the opportunity to turn a new buyer into a loyal, long-term customer.
Tips for Creating DRTV Spots that Deliver Bottomline Results
* Use testimonials. You don't need a celebrity; satisfied customers usually work just as well.
* Demonstrate your product's features and benefits; make the viewer think, "Wow … I gotta have that!"