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Testing is essential for the long-term success of
marketing programs. It’s the only way to prove what works in the
marketplace. No amount of high-powered back-end statistical
analysis can substitute for the clear, real-world answers you
can get from testing.
Split-run techniques—often called A/B splits,
test-control, champion-challenger, or one-variable-at-a-time
testing—have given marketers some valuable answers, but
split-run techniques are like a Model T to today’s Ferrari…
The science of testing has evolved far beyond
split-run techniques
With the right techniques, you can rapidly
test dozens of marketing-mix variables, all at once, with about
the same sample size as an A/B split, yet with much greater
accuracy, plus in-depth results that quantify every variable on its
own and in combination with others. Here’s just one example of
performance before, during, and after one 18–element test:
“Almost any question can be answered,
cheaply, quickly and finally, by a test campaign.”
– Claude Hopkins, Scientific Advertising
(1923)
Since Claude Hopkins wrote Scientific
Advertising in 1923, marketers have championed the split-run
approach… and overlooked significant innovations. Like an
advanced civilization hidden in the jungle, the specialized
field of “scientific testing” has flourished for years out of
sight of most of the marketing world. Unfortunately, experts
developing these new techniques largely ignored the marketing
world, while complex statistics—in 700+ page tomes covering
subjects like nongeometric designs, Galois fields, confounding
schemes, reflection, and effect heredity—made this vast realm of
scientific testing seem out of reach.
Fortunately, newly-refined statistics and
market-focused strategies now offer an abundance of testing
alternatives with little additional effort. Split-run tests are
only the simplest of myriad options that offer the freedom to
test more variables, more rapidly, and with greater accuracy.
Advantages include:
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1. Quantity – You can test up to
three-dozen variables simultaneously in one test (versus each
variable as a separate test with split-run techniques). By
casting a wide net and testing more marketing-mix elements, you
can pinpoint numerous changes proven to increase sales. Often,
elements may have little effect on their own, but 5 or 6
together give you a significant jump in sales. If you believe
the marketing mantra, “the more you test, the more you learn,”
then scientific testing finally gives you the tools to test 10
or 20 variables at once, while your competitors are stuck
testing 1 or 2.
One e-mail test of 12 variables across 3
different customer segments used only 34,000 total names
(for all test cells and the control). Implementing the
optimal combination, sales jumped 41%.
2. Speed and sample size – You can use
the same small sample size whether you are testing 2 or 22
marketing-mix elements. More efficient statistical techniques
let you learn more from every piece of data.
Testing 22 elements of a banner
ad—including messages, offer, graphics, layout, colors,
buttons, and shape—one 3-week test pinpointed 8 changes for
a 72% increase in sales. Split-run techniques would have
required more than 60 weeks of testing.
3. Depth of insights – Results quantify
the real-world impact of every test element on its own, plus
interactions, where elements may have a different impact in
combination with others.
Quantifying each variable on its own allows
you to rapidly optimize marketing programs—implement changes
that help, avoid changes that hurt, and use the lower-cost
option for elements that make no difference.
In addition, interactions give insights
impossible to uncover with split-run testing. For example,
price-offer interactions often lead to impressive gains in
profitability:
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One interaction showed that a 15%
discount and free gift each increased response, but both
together were no better than the discount alone.
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Another test quantified interactions
among price points, shipping & handling, and special offers,
helping the marketing team increase profitability beyond
what years of split-run tests had shown.
4. Flexibility – A wide variety of test
designs allow you to create the most powerful and insightful
test to meet your objectives, whether testing many combinations
of a few key elements (like price points), or testing dozens of
creative changes in a circular, catalog, or postcard campaign.
Test design terminology may seem like a
foreign language, but some good choices include:
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Full-factorial design for price-offer
testing, where interactions are valuable
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Plackett-Burman design for direct mail,
minimizing the number of test cells
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Central composite design to test multiple
levels and curvature
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Reflected/resolution IV design to
increase accuracy for retail testing
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Split-run test to add a 3rd level to one
element in a fractional-factorial design (or to test a
larger catalog or completely new creative concept)
The immense power and efficiency of scientific
testing has given a few market leaders a formidable competitive
advantage, but it does not, on its own, guarantee success. Like
marketing itself, testing looks so easy when done well. But if
you want to hit the ground running, it’s important to get some
guidance.
If you want to understand how these tests
work, look over How to test many variables at once, or read over
some of the Case studies & articles explaining what other
industry leaders have achieved.
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