As we mentioned in last Wednesday’s article on key direct marketing trends for 2013, “Big Data” is playing an ever increasing role in the success of cross-channel marketing campaigns. And while marketers are harnessing deeper insight into the preferences of their customers and prospects, technology is also playing a more significant role in creating, executing and analyzing data driven-direct marketing campaigns.
You are likely familiar with A/B Testing, which allows you to determine which of two offers performed better. While it’s important to know which package was more successful, traditional A/B Testing doesn’t identify which elements caused the better performance. We’re now ushering in an era of multivariate testing, which is to A/B Testing what the combustion engine was to the horse and buggy. Why is this level of testing important? Marketers who engage in ongoing testing average 60% better performance of their campaigns than those who don’t.
We’re not just talking in the theoretical sense here. We recently partnered with Naehas to host a webinar for our customers. The presentation outlined the key elements of multivariate testing including ways to analyze sophisticated multivariate packages to pinpoint the exact elements that drive the greatest ROI among key market segments.
With that in mind, we wanted to share a few best practices that Rab Govil, CEO of Naehas, recently highlighted with our customers regarding multivariate testing:
- Clearly define your goals for optimization. One offer may drive better response, while another drives better cross-sell opportunities. The metric you are optimizing can make a big difference in the strategy you choose.
- Build testing hypothesis based on optimization drivers. Traditionally, the list and offer drove 80% of a direct mail campaign’s success. Today, timing based on customer event, frequency of contact, and implementation with complimentary cross-channel marketing are emerging as key drivers.
- Digital bits are cheaper to test than atoms. By this we mean using digital print technology to change aspects such as the level of personalization or use of color (the digital bits) is cheaper than producing new envelopes or inserts (the atoms).
- Doubling day to learn faster. In a nutshell, when 50% of your response can be measured you can extrapolate the rest to start driving your next level of optimization.
- Test the complete flow, not just the outbound medium. Your response mechanism makes an important difference. Does a landing page convert better than going directly to a sign-up page? Does a 1-page versus multiple page sign-up convert better? Just as importantly, what elements of the response channel – such as layout, color and images – produce the best response?
That’s a lot to take in from one post. But as you can see, when we say we “Power your Marketing,” we mean it. Stop back on Friday, when we’ll wrap-up our look at best practices for multivariate testing.
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