Promo - February 2009 - (Page 36)

Tactics Premiums & incentives G rant A . Johnson Testing testing testing Boost ROI by trying different promotional messages We live in an age of information overload. Each day we’re exposed to thousands of communication messages; our media channel options are exploding; and we always seem to be “connected.” So how do you make your promotional messages stand apart and get noticed, and have your customers and prospects take action? In a word: Test. It is amazing how few companies understand and actually do enough marketing testing. The only logical explanation is that test is a four-letter word—and people don’t like to use four-letter words, right? From a marketing standpoint, we can test the list(s), the offer, the package creative, components of the direct mail package, the format and so on. We can test Web sites, e-mails, banner ads and just about everything that’s electronic or in the e-communications realm. The ability to test and measure results is what differentiates direct marketing from all other communications. Testing, when done correctly, will help a company decrease its marketing spend and intentionally increase its return on investment. More specifically, you need to test your messaging and offers in order to get the best results possible. Keep in mind that the promotional offer with the highest return often defies logic. Whatever you market, your goal is to create interest and then action. This is where basic psychology comes into play. If you are offering a coupon and you test $3 off, $1 off and $.75 cents off for a $5 item, which will perform best? Did you guess $3? If so, you’re likely incorrect. Why? To the customers and prospects, the offer seems too good to be true; they will assume that there must be a reason for the steep discount, and probably not a good one. The best offer, from my experience, would be the $1 off. It typically would get you the best results. test is a four-letter word—and people don’t like to use four-letter words, right? Speaking of The BoTTom Line Testing allows marketers to determine, in a real world setting, what works, what doesn’t work, and why. Like direct marketing itself, testing is about numbers, ROI and data. We test not only to increase ROI, but also to learn. The more we learn, the better we can market to segments that emerge as we move our marketing programs forward. As the late direct marketing guru Dick Benson said, “You’ve got to determine if the information you can reasonably expect to gain is really worth the expenditure.” myThS anD miSunDerSTanDingS Testing is expensive. True or false? Answer: It depends on how you look at it. Is it an investment in the future success of your marketing efforts? In his book “Selling the Invisible,” Harry Beckwith says focus groups determined that fat-free pizza at Pizza Hut, skinless chicken at KFC and the McLean sandwich at McDonald’s would all be hugely successful. These companies undoubtedly spent millions of dollars on proposals and on planning and marketing the launch of these products. Today, none of these items are on the menu. In-store testing, if done at all, should have been more extensive. I argue that an investment in testing would have saved these companies money—and lots of it. W For more articles on incentive marketing, go to http://www.promomagazine/incentives.com Newsletter Web RSS Webinar Conference Podcast 36 February 2009 / www.promomagazine.com / Promo http://www.promomagazine.com/incentives http://www.promomagazine.com

Table of Contents Feed for the Digital Edition of Promo - February 2009

Promo - February 2009 Contents Editor's Note A Bitter Pill Moving the Pictures Exclusively Yours Smart Mart Web Watching Tell Your Friends Commentary Second String Q&A: Shop Right Cover Story: Game On! Game On! Resource Center The Agency Center Testing... Testing... Index of Advertisers

Promo - February 2009

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