Today, his premise of testing is as true as ever. In fact, testing may even be more important now because the vast array of options available to marketers. A test can mean the difference between a stunning success for a product or an abject failure.
And because of the larger quantities and costs involved, testing is a particular necessity and an ideal opportunity when it comes to membership recruitment.
• List tests – Can impact response by 500 percent.
• Offer tests – Can impact response by 200 percent.
• Creative tests – Can impact response by 100 percent.
These test outcomes highlight that by doing the same old thing over and over again, there is likelihood that a marketing program is substantially sub-optimizing the potential returns that could be achieved.
If testing is so important, then how should it be done?
There are two aspects of testing. Let’s call them the “art” and the “science” of testing.
• Can we make an association?
Once a good set of test options has been developed, it is time to prioritize them. The key here is to test big things. Look for a breakthrough in testing. Too many testing dollars are spent on inconsequential testing – like who signs the letter. The fact is that testing small things will have such a small impact on the results that chances are good it will not have statistical validity.
• Lists – One of the easiest and most productive tests is trying new lists. For a full discussion on testing lists, take a look at my post, Five Strategies for Picking the Best Marketing Lists.
• Frequency – Try marketing more frequently to top prospects and customers.
• Pricing and offer – Psychological price points are for real. As a rule of thumb, a price ending in a “7” or “9” will generate more orders and dollars. You can test price points by offering a special acquisition dues discount to new members.
• Packaging – Test a bundled membership product instead of selling a one size fits all membership product.
• Media – Many media are available today and need to be tested. Try direct mail followed by an email linked to a microsite compared to a stand alone email or mailing.
• Messaging – Try new messages that emphasize a different value of membership. An easy and fast test of messages can be done with email subject lines. Send out a small portion of the list with a variety of subject lines. The group with the highest open rate wins and that subject line is used for the remainder of the list.
Equally important to the “art’ of testing is the “science” of testing. The science of testing starts with creating proper test structures. The key here is establishing a control package and testing against it. This is done by drawing a portion of names out of the control group of the marketing effort and using them for the test. Then structure the test by holding everything else constant except the variable that is to be tested. For example, if the test is for a special discount offer, then on the test segment use the same format as the control package and mail the test promotion to an equal ratio of the control lists in the mailing.
A test obviously does not always produce better returns than the existing control – that’s why to lower risks tests only go to small segments of a larger promotion. However, statisticians tell us that in each test cell we need a minimum of 40 paid responses to give us a statistically valid test. Therefore the number of anticipated responses will dictate the size of each test segment. If a 0.50 percent response rate is expected then the test cell should include a minimum of 8,000 names (40 / 0.005 = 8,000).
• Laser Personalizing, ink jetting, or labeling the reply form with a keycode and requiring the form to be returned to receive a special offer.
• Performing a computer match between the returns from a given period of time and the keycoded mailing lists that were used in a mailing.
• Programming in a “special order code” in order forms on web sites that are required for special pricing or offers.
Once returns come back in, compare the responses in the control group against the test cell. Look to see which cell generated a higher return on investment and make the best performing test your new control.
Testing is an ongoing process. Over time, it becomes part of the culture of an organization. A focus on testing ensures the flow of new ideas and new members that an organization needs to keep growing. And it also provides a methodology for validating each of these new ideas.
Testing in membership recruitment allows your organization to market more efficiently. And if Claude Hopkins could do tests back in 1923, I am sure that there is a way to build testing into your membership marketing efforts.
Nice picture of dog and really great idea about marketing thanks for share this information.
Really great information about marketing thanks for share it. This information is really helpful for me.
You mention a couple of books here. I'd be interested in a future post of your most recommended reading for association marketing. Thanks!
Tony Rossell love to read post, it’s really useful for direct marketers, advertisers. And being an advertiser I love Sir Claude C. Hopkins... well if I am talking about marketing testing, then it is the best way to get the maximum market share for company or services. It’s really important to be complete paper work before starting marketing campaigns.
I always used these few steps in our all new marketing campaigns.
Developing a prototype, model or description of the product or service that you can show to others.
Determining the price that you can sell the product for in the current marketplace.
Go to a potential customer with your sample or prototype and ask if he would buy it.
Compare your product with other products on the market.
Visit trade shows and exhibitions--they're a terrific place to get immediate feedback on a new product.