Testing: The Secret to Increase Your Direct Sales

Portrait of a male scientist examining two test tubes in lab setting

Last week we met with a small retail business whose direct sales dollars depends heavily on direct marketing efforts. We were on the topic of email marketing and I learned that they had never done any testing. I described the concept of A/B testing, and while they understood the potential value, they perceived it as “too complicated”.

Trust me on this one. Over the course of a 20+ year career, I’ve tested pricing, lists, subject lines, offer copy, packages, creative, engagement devices, premiums, even stamps! Here’s what I learned:

  1. Slight variances in performance can easily add up to tens of thousands of dollars. Over the course of time, a better performing effort can amount to hundreds of thousands of dollars.
  2. There is psychology involved in motivating a customer or prospect to buy. Testing enables you to learn about what works and what doesn’t, which can lead you to develop your own theories that guide you moving forward.

Where should you test? Every channel where you are delivering marketing messages should be considered fertile testing grounds. Despite popular fallacies, you can measure ROI on social networks like Facebook and Twitter.

Tips for testing:

  • Keep your laboratory as clean as possible. Make sure you’re comparing apples to apples with regards to list and delivery times. Any variances between the two samples will fuzzy your results.
  • Create test panels of equal size in channels which allow for list segmentation.
  • Think in terms of having a “control” and “test panels”, with your goal always to beat your control to increase your sales.

Let me close now by passing on my mantra: Always be testing!

1 Simple Ingredient for All Your ROI Needs

Susan 1x1Having grown up in the subscription and later the catalog marketing worlds, one basic concept permeated everything we did. Every effort, every offer, every list and every test is assigned a key code, an alpha-numeric code that enable results to be tracked, measured, and attributed to the source from which the customer acquisition or sale came.

This practice of using key codes can and should be used to measure social media marketing efforts.  If it sounds too complicated, it’s really not. It’s more about discipline than it is sophistication, and measuring ROI is all about discipline.

How do you capture key codes?

  1. Create a code to attach to your special coupon or offer.
  2. Publish the codes from Twitter, Facebook or whatever social network where a majority of your customers reside.
  3. Create a field on the input screen that the customer will use to redeem the coupon or offer.
  4. Refine a system for ensuring the codes are added to your customer database.

How do you create key codes?

Depending on how expansive your marketing programs are, you’ll probably want to think about a 5 to 6-digit coding system. Consider this as a possible structure:

Digit 1: Alpha or numeric character to identify source of conversion. A simple example would be T=Twitter, F=Facebook, E=Email.

Digit 2: Year of campaign/effort.

Digit 3: Month or season of campaign/effort.

Digit 4: Type of effort. Examples: coupon, contest, special promo.

Digit 5-6: Specific identifiers for the effort.

If you follow these instructions, you will create for yourself  a vehicle for measuring results and the opportunity to approach your social media marketing as the fascinating science it can be. What’s stopping you?