B-to-B Insights: Test Your Way to Success
Assuming we can find a new list that matches the profile of List Four and can replace List Five, with a response rate of 2 percent or higher and test cell counts of 5,000, the results from this confirmation test would be statistically projectable, as illustrated in the Check Test Cell Counts Matrix (see below).
Now you see how this multivariate testing methodology can identify a winning control package with just 65,000 names, as opposed to the 150,000 that would have been required for a test of this magnitude using traditional methodology. This could translate into a savings of $25,000, or even $50,000—money that now can be redeployed for a third campaign.
A Final Word
When developing your testing, always look for ways to do it inexpensively. Use laser imaging or black-plate changes to test splits. Once you have identified your control packages, use the 80/20 rule to keep pushing your campaign performance. Run 80 percent of your campaign using your control message, offer and list strategy, and then invest the other 20 percent in testing big differences that really can move the needle.
Russell Kern is president of The Kern Organization, a fully integrated offline and online direct marketing agency in Woodland Hills, Calif. He can be reached at (818) 703-8775 or via e-mail at email@example.com.