Innovative Testing
Though the current craze for testing and measurement can be a boon, make certain you're looking at the long term rather than just the immediate results.
Though the current craze for testing and measurement can be a boon, make certain you're looking at the long term rather than just the immediate results.
Testing is driving marketers’ decisions more these days. It’s probably as much a consequence of the economy as the need to be accountable for results (read “Ignorance Is Bliss” by Mark Sakalosky) every quarter. New media marketing, with its increasingly scientific efforts at measuring, testing, and optimizing, is even having an impact on traditional brand marketers.
Imagine if we were to see changes like this from some well-known brands:
OK, OK… I’m putting you on. Those stories aren’t true. But I’ll show, later on, why it would be possible to misinterpret tests this way.
There is a serious flaw in the way many new media marketers distinguish between transactional customers and relational customers, and between return on expense and return on investment (ROI). These types of misconceptions can lead to a perfectly logical-sounding analysis… that is dead wrong.
Let’s examine the terms I’m using:
Let’s take a look at how the three changes I imagined could have been misinterpreted:
Peter Drucker, the management guru, once said: “The purpose of business is not to make a sale but to make and keep a customer.” That simple statement is profound in a way that is difficult for many marketers to appreciate.
It’s certainly possible to design every single one of your ads/offers as a “one-off.” You can take the classic direct marketing approach of peppering your audience with offers that are not connected by anything other than the fact they come from you. Then you cross your fingers, hoping you’ll get enough traffic to make the effort worthwhile.
In this scenario, the relationship you build is a shallow one, based on “Hey, have I got a deal for you!” When you haven’t got a deal, you don’t get the customer, and the only loyalty you develop is based on price alone — a flimsy value proposition over the long term. Plus, this contributes to major mailing-list and traffic burnout. You’ll be expending a lot of effort on a regular basis to keep attracting new traffic.
Does this mean that I’m antitesting? Nothing could be further from the truth. I regularly advocate a disciplined approach to conversion rate marketing that incorporates measuring testing and optimizing. Nevertheless, the focus needs to be on the long term. The most powerful secret of customer conversion is customer retention. What are you measuring and what is your time horizon? Let me know.