Donor voice pretest tool webinar deck_final
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Transcript of Donor voice pretest tool webinar deck_final
DonorVoice presents:
A Proven Way to Get Better Returns from your Direct Mail Testing Program
Innovation Webinar Series
The Problem
Realities of The New World• Cost per donor to acquire goes up• Massive competition
Current Testing Process• Biased (too much reliance on conventional wisdom)• Slow & Costly (A/B testing to infinity)• Inefficient (Throwing out baby with bath water)
A New Way to Test• Feedback from target audience• Deceptively simple – let’s ask ‘em (how ask matters, a lot).
The Solution
Battle Tested
Product development• Member packages• Consumer package goods• Direct mail
Should bottle be red, white, blue, green, yellow?What should brand name be?What about size/shape of bottle?How much does it cost?What marketing messages do we putOn bottle?
Beat the Control. Period. End of Story.
Why Test?
How Much Cost to Beat Control?
Outer Envelope Type 1 Type 2 Type 3
OE Color goldenrod brownkraft gray
OE Teaser Free Gift!Annual Appeal
Look Inside!
OE Type 6x9 #10 Plain#10 with window
This is 27 tests with all
combinations (3x3x3).
27 TestsOld Method $88,500 (production costs, opportunity cost)New Method $24,000 (includes tool, 3 live tests)
269% difference
But We Don’t Do 27 Tests
If you do 7 or more tests a year, this is financially better deal on first project
Odds of finding control beating product sooner are much higher
For NO TEST organizations – Think your control can’t be beat? How much money is left on the table with a sub-optimum product?
+
Do survey resultsmatch real world?
Test A, #1 in DV Tool
Control, #2 in DV Tool
Test B, #3 in DV Tool
Case Study #1
Control family
Possible Test Appeals• Client needed to identify new family as “face” of organization.
• Wet test results performed exactly as predicted producing a test/family that did beat the control.
• If conventional wisdom had been relied upon the best options would not have been mailed.
Case Study #1Financial Benefit:• Production & postage savings from NOT mailing
all test packages $46,000
• Anticipated annual revenue increase with rollout of better performing control $72,000
$118,000
Color of Outer Envelope
Labels
Calendar Grid
Backend Premium
Personalization
Case Study #2
Case Study #2Financial Benefit:
• Savings from not producing & mailing predictedlosing test packages $45,000
• Increase in net revenue by doubling panel volume on predicted winners $20,400
$65,400
Okay, But…“Our best donors are not online…”
“People don’t do what they say...”
Other Weaknesses of Current Testing
Process
“Process” for Deciding What to Test
What do we test?
Purple it is!
A/B Testing to Infinity (and Beyond!)
6 variations, 216 possible combinations.
10 tests a year, 22 years
+ Can’t analyze across tests
• Test a did poorly• Test b did okay• Test c did well
Unanswered Question:If we combine b and c is that better, great, the same, or worse?
Baby in Bath Water
Test package that changes everything.
It loses.
Now what?
Our Process.
Step OneChoose What Package and What Part(s)
1. Envelope2. Letter3. Premium (front or back end)4. Combination of above
Gift Amount: $50, $75, $100, $125, $150, $200, $250
Teaser Copy: Headline 1…….6
Premium Example
Step TwoIdentify “Ingredients” to be Tested
Johnson Box Ingredient
Teaser Ingredient
Size Ingredient
Reply Form Ingredient
Message Ingredient
Step ThreeFinalize Grid/Artwork
ATTRIBUTE Level 1 Level 2 Level 3 Level 4
Labels L1 (LYH labels)L2 (Annual Appeal
- Nov version) none n/a
Outside envelope OE1 (control)
OE2 (double dopcut)
OE3 (love heart teaser) OE4 (4 color image)
Buckslip insert BS1 (control version)
BS2( double drop black and white
image)BS3( Double drop cut with 4 color image) n/a
Certificate
C1 (certificate of appreciation - Annual
appeal)
C2 (certificate of appreciation - LYH
version) none n/a
Reply Slip & Letter
RS1 (Control reply and letter)
RS2 (double drop cut no image reply
and letter)
RS3 (double drop cut with 4 color image
reply and letter)RS4 (love heart reply
and letter)
Lift Note noneLN2 (lift note black
and white) LN3 (yellow and blue) n/a
Step FourDesign Experiment Our tool determines what
combinations to show each respondent.
Step FiveConduct the Survey
Renewal• Client provides email sample
Acquisition• Develop filter questions• Match any profile
Informational Insert in Control
“Baby” significantly outperforms control Buckslip
Step SixProvide Results
Step SixProvide Results
What to Mail (real examples)• Run live test with lift note in addition to and in place of certificate• Live test (2012) alternative copy against “Year End”• Don’t bother with test colors on OE• Don’t bother with new design on calendar• Flower labels better than anchor for men and women• Tote better than duffle as back-end premium with renewal
Who To Mail • Formal education is big discriminator for package preference• Append to file for renewal selection• Look at applying in acquisition (skews lower HH income, in South)
Contact Information
Pretest Tool:Get to rollout faster.
Kevin SchulmanDonorVoice, CEO(202) 246-9649
Twitter: @kschulmanDV