creating value testing
TRANSCRIPT
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