Test hundreds of different offers with one campaign only. Effortless.
The Direct Marketing headache.
Maximizing the impact of a Direct Marketing campaign is a goal every Marketing Manager would love to reach… but how many really succeed? The number of components that have to be optimized is huge, and the number of combinations is unlimited.
When preparing a Direct Marketing campaign, each of these dimensions will always play a significant role in the overall performance. And the things become even more complicated when it comes to differentiating some of them along the various customer segments. Needless to say that no one can get close to an optimal Direct Marketing campaign without a well structured learning process, which necessarily goes far beyond intuition.
You could decide to test every single combination one after the other. But that would probably require a few centuries, which is definitely too much given your shareholder’s timeframe. You could also try to test more than one combination at once, and compare the results during the same marketing campaign. But, unless you have infinite amunitions (ie. customers and budget), how many different offers would you be able to launch at the same time? Not so many. This would probably require years of testing instead of centuries… but this is still barely acceptable, and in any case the market would have changed between your first and your last test, making the comparison extremely tricky.
The Test & Learn medicine.
That’s where Test & Learn becomes interesting.
With a single Test & Learn campaign, you can assess the actual impact of hundreds of combinations by sending only 4 to 15 different communications on the market.
This can be achieved by leveraging some powerful statistical models (experimental designs, elasticities, cross-effects, …), which will lead you in a very short time towards the best possible combination for your future Direct Marketing campaigns. And there’s a cherry on the cake: this can be performed simultaneously around your 3 main strategic indicators: volumes (maximize your redemption), revenues (maximize your turnover) and profitability (maximize your cost-effectiveness).
No wizardry here. It’s all about science.
The Test & Learn methodology is based on proven statistical models, and has been used for years by many renowned institutions all over the world, and more specifically in the United States. Capital One, Google and other outstanding multinational companies already implemented their own Test & Learn approach, which has heavily contributed to their success.