This document discusses strategies for multichannel testing to achieve high performance marketing results. It emphasizes the following key points:
1) The goal of testing should be measurable results like sales, not just impressions or clicks.
2) Campaigns should be planned backwards from the point of sale and optimized by measuring each channel's discrete performance.
3) An integrated approach tests combinations of channels and reinvests in top performers, recognizing that not all channels are equal.
Regression analysis: Simple Linear Regression Multiple Linear Regression
Notes Version: Which Medium Works Multichannel Testing For High-Performance Results
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Which Medium Works:
Multichannel Testing for High
Performance Results
Spyro Kourtis
President / CEO, Hacker Group
October 4, 2011
Performance Bias
• Our vision statement reads:
“Create integrated programs that reach the target
audience where they live, work and play…”
“…we are NOT media and technology neutral – we are
biased towards performance and this drives ALL
recommendations…”
• We only pursue opportunities that deliver
results for our clients
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Presentation brought to you by the following…
following…
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Once Upon A Time
• Brand advertising was king, queen and the entire royal court
• The rise of “measurable” marketing in the digital world
happened out of necessity and I’m sure glad it did
• My journey east to find truth
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End the theoretical fairy tale, get back to practical work
1. Focus on objectives and metrics that matter to the
executive suite
2. Build and track all programs backward from point of sale
3. The new and improved integration
4. Buy into multi-dimensional testing
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#1 Measurement ≠ Successful
• Many confuse “measurability” with ROI
• Traditional and interactive measurements are not always
meaningful for our clients and stop short of sales
• Awareness
• Clicks
Traditional • Page views
& • Purchase intent
Interactive • Impressions
• Blind faith sales
• Cost per call
• Cost per lead
Hacker • Cost per sale
Group • ROI
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#2 Backward from point of sale
• What’s my budget?
CPS x Customers = Budget
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What’s your goal?
Cost Per
Sales from Sales from
Calls Clicks
Calls Clicks
Direct Mail $ 28.90 $ 223.53 $ 127.52 $ 1,788.24
Email $ 140.97 $ 10.75 $ 671.27 $ 89.60
Mobile Barcode $ 142.32 $ 237.50 $ 255.03 $ 1,979.17
Mobile Advertising $ 10.01 $ 359.39 $ 168.15 $ 2,807.77
Tablet Advertising $ - $ 1.37 $ - $ 1,407.41
• Test, measure and roll out with the best combinations to suit
your needs
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It begins with targeting
• Who is the target audience?
#2 It begins with targeting
• Three flavors:
Behavioral/transactional information is
best
Demographic/ Firmagraphic
Self reported information
─ Acquisition – big ticket sales
─ Customer communications
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#2 Provide content the way they want to consume it
• Seamlessly transition physical to digital
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The New and
Improved Integration
Multichannel Testing for High-Performance Results
#3 No one discipline should own a specific media channel
• Mass advertising is more than TV
• And direct marketing is more than just mail
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#3 No one discipline should own a specific media channel
• Digital is more than just digital, huh?
• What is the responsibility and expertise of a digital agency?
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• No one discipline should own a specific media channel
BRANDING DIRECT RECO:
RECO: • Drive leads to Call
• Rich Media • CPC
• 2/3 CPM • Network testing
• One network
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Integration and optimization
• Integration does not mean executing a campaign across
multiple media for uncertain “synergies”
• We optimize performance by reinvesting in media that drive
results and dropping those that don’t
A+ B + C + D + E = ?
D > E >A> C > B
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#3 Our approach to multi-channel campaigns
• Start holistically
• Measure discretely
• Optimize by channel
• Start over: Allocate media holistically
• Not all media is created equal
• New media synergies
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Begin with a holistic view
• Not all media are created equal!
• Set a goal for what to expect from each
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Break it down
• During execution phase, measure
all media discretely
• At the right cadence for the
channel
• Optimize discretely
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Put it back together
• Start over again: Allocate media by channel based on performance
and optimization
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#3 Not all media is created equal
Seed Harvest
Non
Addressable
Addressable
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#3 The power of one prospect universe
• Tracks all
solicitations by Seed Harvest
physical and email Seed Harvest
address
• Don’t forget
Non
mobile phone # Non
Addressable
Addressable
Addressable
Addressable
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One Prospect Universe
Keeps you from drawing wrong conclusions
Format Summary Lift Over ROI
Control
Mail Package Only 31.22% 1518%
Mail Package with -53.22% -2619%
Email Follow Up
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Our media strategy: The 4 Cs
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#4 Testing strategy
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5 3
4
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Look out brand, mobile web isn’t just for impressions
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HOW TO BUILD A HIGH-PERFORMANCE DIRECT MARKETING PROGRAM
Step 1: The PowerTest® methodology
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5 3
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HOW TO BUILD A HIGH-PERFORMANCE DIRECT MARKETING PROGRAM
Step 2: Look for winning combinations (HotZones™)
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5 3
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HOW TO BUILD A HIGH-PERFORMANCE DIRECT MARKETING PROGRAM
Step 3: CheckTest or rollout winners
™
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5 3
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#4 Multi-Channel media synergies
• Timing
• Offers
Consistency increases awareness
Brand them
• Not as concerned about
creative synergy
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Don’t forget about conversion: Testing strategies
• Lessons learned – don’t assume that you have the right
conversion process in place!
• Avoid spilling leads by validating that the process in place
will convert
• Then test to optimize conversion for the best results
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Sales conversion: Site testing
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Sales conversion: Site testing
• A/B/n Testing
• Multivariate Testing (MVT)
• A/B/n + MVT
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Conclusions
• Remember to focus on the metrics that matter
• Tear down silos – plan based on discipline, and execute
across ALL relevant accountable media
• Don’t attempt to boil the ocean
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Questions and Answers
Thank You!!
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