4 Examples of How Testing Improved ROI

4th December 2018

“Never stop testing and your advertising will never stop improving,” said David Ogilvy. This is a message endorsed by Royal Mail’s Market Reach who say that continually testing marketing campaigns removes complacency and keeps brands moving forward.

Here the direct marketing specialists have shared success stories about how testing boosted the ROI of the following four brands’ campaigns:

1. Driving value from current customers:

Tesco used direct mail to target its less loyal shopper base. It needed to refresh its marketing message in order to enhance response and spend levels. Previous offers had not been performing as well as on similar communications.

After analysis, with carefully pre-aggregated data, they identified several opportunities to deliver improvement.

As a result of testing against a control, the new campaign generated a 20% uplift in participation.  The learnings also helped the marketing team refocus their on-going targeting.  Results from the test proved the business case for a 50% increase in mailings in Year 1, with continued increases in forecast year on year.

2. Targeting prospects for store launches:

Costco, the membership warehouse club, was looking to recruit new members ahead of opening a new warehouse.  The success of the new warehouse depended on attracting the right profile of registered business owners and individuals from particular professions and sectors in the right geographic area.

MarketReach analysed the membership data surrounding existing warehouses to determine the distance members were willing to drive. This helped them to create the suitable marketing area for the new location.

Analytics also showed that responses rates from previous campaigns were higher amongst those who had been touched multiple times by mail and door drop.

As a result of analysing previous testing data and utilising the results in the latest campaign, Costco was able to recruit 63% of its new members before the warehouse opening day. Employing the optimum frequency tactic drove a 28% response uplift.

3. Door drop to promote awareness and action

The Sun wanted to grow sales of its newspaper and increase uptake of its Home News Delivery service.

Using its highly valued TV Soap magazine as a door-drop, The Sun was able to deliver its key asset directly into UK living rooms.

As door-drops stay in the home for an average of 38 days and are shared and discussed, The Sun’s marketing team knew the format, that included offers as part of the content, could both engage consumers and drive purchases.

The Sun used data to identify and target areas that were most likely to have potential Sun readers in, who would welcome the magazine and who lived within the catchment of a Home News Delivery retailer.

The campaign resulted in a 15% uplift in Home News Delivery over the control group. Analysis of the results showed that the campaign had also help to change longer-term behaviour in recipients too.

The campaign was highly successful at engaging targeted audiences, with a similar proportion of respondents indicating they’d received the magazine to the proportion of the UK that was mailed. Half of those who reported receiving the magazine claimed to have read it.

4. Using mail to gain a competitive edge

Gtech, the electronic tool maker, needed a launch strategy to shake up its category to build brand awareness, and to explain the new technology it offered, plus justify its premium as well as driving sales.

Working with MarketReach, Gtech to brought together brand, content and sales messages in one medium, and used direct mail to put the brand directly in the home of a core mature audience.

Gtech used a test and learn program to drive constant improvement, to continuously enhance segmentation, timing and messaging.

As a result of testing, Gtech’s direct mail marketing consistently delivers an ROI of 3:1.  This program of continual improvement has resulted in higher response rates and sales, and has lead Gtech to increase investment in mail.

Direct mail has helped established Gtech as a leading UK vacuum cleaner brand. It has now sold in excess of 22m products worldwide since 2002.

To find out how testing can enhance your marketing programme and improve your ROI, contact our experts today 01322 414 000 or click here to submit a message via our contact form.