How to Improve Upon Generic Cooperative Database Response Rates
February 2, 2015
5 Tips from the New Best Practices for Circulation Management
October 5, 2014
Measuring the Incremental Value of Catalog Mailings
March 28, 2015
Test Design "Needlemovers"
December 16, 2014
What are the important tests that can drive your business and let you find the “needlemovers” to drive sales and profits?
Measuring incremental sales to house buyer segments. To compare sales generated from a catalog versus sales from a buyer segment that happen even if those buyers don’t receive a catalog. Establish a control group that you do not mail versus a sample group that gets mailed. Be sure to test older house file segments.
Measuring sales by the channel used to place the order. Traditional call center and mailed in orders, web orders and mulitchannel customers who have ordered through both the web and through traditional channels. You’ll get very different results based on the order channel that will guide you to the best frequency for the different types of channel buyers.
Testing the most economical page counts. Are all the pages profitable? Are all the pages profitable when mailed to a prospect universe? Can you mail fewer pages and have the lower cost improve profitability over the decreased response?
Testing the effect of expiration dates of promotional offers on the historical sales curve of a catalog. Review your historical sales curves versus the sales curves that result when a promotion expires. Make sure your promotions expire close to the natural end of a catalog’s life.
Testing the frequency of buyer remails. Measuring the total sales and profitability of a series of buyer contacts. “More to the best, Less to the rest!” means you should test adding to the frequency of buyer contacts for the best, most recent buyers and to test cutting down on the frequency of contacts to the older, less responsive buyers.
Measuring micro segments by segmenting into lower dollar segments (say $0-$25 and $26-$50). Measuring higher dollar segments ($250- $500, $500-$1,000, $1,000+). Measuring 3x+, 4x+ buyers. Segment into lower dollar segments and into higher dollar segments to see if you can find pockets of great response and pockets of weak response. Segment house buyers into single and multibuyers and segment multibuyers into 2x, 3x and 4x+. Figure out a way to promote more heavily to the 4x+
Suppressing gift buyers by seasonality. Segment November and December holiday buyers and track their response off season and in-season. Consider an extra mailing late in the holiday season to get last minute gift orders. Consider last minute catalogs and e-mails to holiday web buyers. Test reducing the frequency off-season for holiday buyers. Test dropping the frequency of “ship-to’s” off season.
Testing old buyers dropped by advanced list hygiene. Testing new buyer addresses identified by list hygiene. Old buyers who have moved just won’t respond so use every list hygiene product out there to find the old addresses and drop them. Segment new addresses and measure their response.
Segmenting ship-to’s into gift recipients versus business ship-to’s. If “ship-to’s” have the same name, they may respond differently than gift recipients.
Measuring web response by:
comparing the web transaction file to the mail file
tracking promotion redemptions
measuring sales by SKU by channel
measuring traffic to other stores.
Tracking web response to measure the full response of your web buyers. Don’t under mail web buyers because you don’t capture all the source code data at the point of purchase.
Segmenting catalog requests by channel of request
catalog requests from magazine ads
catalog requests phoned in or mailed to the call center.
Convert web buyers in the week, the day or the hour you get the web request. Web requests get stale quickly.
Measuring catalog requests by the number of attempts to convert the inquiry. Measuring catalog requests by the method used to convert the inquiry (for example, catalog, e-mail, postcard offer, or series of follow-up offers.) If you segment catalog requests by the number of conversion attempts (rather than when the request was received) you’ll get a much clearer picture of when to stop mailing them.
Suppression by brand or type of SKU for holiday buyers. Some of your brands may not be good holiday gift items so consider suppressing brand buyers during the fourth quarter.
Segmenting multibuyers by type of multi (rental to rental, rental to coop, coop to coop.) You’ll get very different response rates.