creating value testing

Creating Value Testing

Geoff Wolf, EVP, J.Schmid & AssociatesJude Hoffner, Principle, Hoffner Marketing

Agenda• Why Test• Extracting Value from Testing• Communication• Q/A

Agenda• Why Test• Extracting Value from Testing• Communication• Q/A

Why Test

“It’s there!”

Why Test

1) Distinguishing advantage of direct marketing

Why Test

“If you’re not improving…”

Why Test

2) Essential for survival

Why Test

2000 2003 2006 2009 2012

27% 25%

17% 15%11%

71%

77%

83%87%

91%

Items Sales

E-Comm Mobile

Why Test

Why Test

3) Isolate Valuable Practices

Why Test

3) Isolate Valuable Practices

Why Test

Testing + Testing = Value

Testing + Answers = Value

Agenda• Why Test

• Extracting Value from Testing• Communication• Q/A

Extracting ValueStarts with

What to test

Extracting Value

Nice to Know…

Vs.

…Need to Know

Extracting Value

Nice to Know…

May not be actionable in future

Example

Nice to Know…Beware Creative tests!

The 2013 Blue Cover!

The 2013 Red Cover!

The 2014 Cover Must be Green or White!

Extracting Value

Demand Cultivate accountability for test ideas

Extracting Value

Need to KnowActionableRelevant

RepeatableAnd delivers ROI

Extracting Value

Need to Know……delivers ROI

Offers=

Conversion

Example

Customer Acquisition

Extracting Value

Need to Know……delivers ROI

Contact Strategies=

Margin

Example

Extracting Value

Need to Know……delivers ROI

Channel mix/preference=

Engagement

Example

Extracting Value

Need to Know……delivers ROI

Doesn’t always have to be anA/B test.

Extracting Value

Let’s talk about your data…

Extracting ValueThe Obvious• Ensure randomized selection• Create two controls when

possible• Manage long tests carefully to

preserve valid results

Extracting Value

The Less ObviousThink ahead!

…about what you’re reporting and to whom

Extracting Value

Must be organized

AND

Communicate Clearly!

Example

Example

Example

Ok if testing for $/Bk

Example

Not Ok if testing for Contribution

Q & A