If someone says that your organization is not ready for Test & Learn,He probably works for your competitor.
Test & Learn has 4 (simple) prerequisites. That you certainly already match.
Thanks to Teanler, there is no need to be a multi-billion Dollar company anymore to do Test & Learn. You only have to meet 4 simple requirements, and we will do the rest for you:
Size matters, as always. But there is room for everyone.
The size of your Direct Marketing campaign is one of the key elements which will determine the feasibility of your test. Obviously, the more complex your test will be, the more contacts you will need to ensure the stasticial significance of your test’s results. A test complexity is driven by the number of its dimensions and values, but also by the presence of cross-effects or the wish to identify some best offers for a set of clusters, and not only for the total population as a whole.
Another important criteria is your expected redemption rate: the lower your redemption rate will be, the more customers you will need to make sure that you will have at least 100 respondents per test cell.In the following figure, you will find some examples of minimum numbers of contacts you need in your Direct Marketing campaign to run a test, according the test “complexity” and your expected redemption rate.
Test & Learn is everything but disruptive.
Each test campaign is already part of your existing marketing plan.
Except in very specific cases, all your test campaigns can be integrated into your existing marketing plan: a traditional Direct Marketing campaign with a “standard” offer sent to 100,000 customers or prospects can be used to test several hundreds of theoretical offers, around 10 cells comprised of 10 000 customers each.
No, or very few, additional costs.
The vast majority of the tests that you will launch will not require any additional development costs, especially if your value proposition’s characteristics can be modified with no investment (eg. pricing, service features, …). In some specific cases such as communication tests (mailing layout, …), an limited additional marketing budget may be required to differentiate the comunications you send to your customers. The amount mainly depends on the complexity of your test, but keep in mind that it is always possible to design a test campaign in a way that adheres to budget constraints of your Marketing Department.
No impact on your campaign performance during testing phase.
The overall performance of a test campaign with several offers is generally very close to the performance of a traditional campaign with the “standard” offer only: the under-performance of those test cells that give worse results than the standard offer is, on average, compensated by the excellent results of the best performing cells. But be patient, and wait until the next campaign, when you will generalize the best offer identified thanks to the Test & Learn approach: this is where your will be rewarded.