Tuesday, May 30, 2017

Test, Measure, Tweak, Then Test Again

December 4, 2012 by  
Filed under All Posts, Business Practices

How will you know how successful you’ll be producing and selling your videos? The only way to know this is to start and then test it.

What will you test? Just about everything! Your topic, your price, your title, your keywords, your web pages, your landing pages, your marketing campaigns, it all needs to be tested. You really don’t know if and why something is working unless you measure it.

Split Testing

So how can you really test what title or price is working, what emails, calls to action, landing pages, direct mail pieces, etc. are converting prospects to customers? One of the best ways is to do split testing (also called A/B testing or bucket testing) which is a method of market testing where you test one marketing variable (for example price) with a different aspect of the variable (a different price) among segments of your prospects.

Split testing has been used in direct mail marketing for decades. When selling on the internet, the same testing tactics can be employed very successfully and many times less expensively than with direct mail.

The following is an example of how this works. For this example, we are testing price. We took our email list of 3,000 names, split it into thirds and tested price only: $19.95, $29.95 and $49.95. (It is imperative that you only change one variable when you do this. If not, you won’t be able to really compare and know what it was that caused more people to buy.)

Notice in the chart below that the lowest price had the highest response rate, but brought in the least profit. So you see that in this test, the higher price fared better. This is very good to know because if you then open your marketing to say 100,000, if you kept your price at $19.95, you would be shortchanging yourself by close to $65,000!

Testing 3,000 Names First 1,000 Names Second 1,000 Names Third 1,000 Names
Test A – $19.95 Test B – $29.95 Test C – $49.95
Response Rate 3.00% 2.00% 2.50%
# of Sales 30 20 25
Cost of Goods $2.00 $2.00 $2.00
Net Profit $538.50 $559.00 $1,198.75

 

So once you get one variable determined, don’t stop there. You need to test others. Split your lists and send out different email messages, use different calls to action, send them to different landing pages, etc, to see what works best for your audience. Run A/B tests on your subject line just as you did when you were testing your pricing and direct mail pieces. Don’t be afraid to test the waters.

When we first started emailing our Patrick Smith (books and DVD) list, I worried about sending emails more than twice a month. A few years ago, we decided to try a more aggressive campaign for the holiday shopping season and for six weeks we sent out weekly emails. What happened astounded me. Not only did our sales quadruple over the same time as the previous year, but when we looked at our reports we discovered that the percentage of unsubscribes did not increase and in fact the number of spam reports drastically went down. Now we send out our emails weekly, and starting in October, twice a week. What works for one company may not work for you and vice versa. You’ll never know until you try!

Recommended Reading:

8 Ways To Make Money Producing Your Own Videos

There are also some good books available on split testing at Amazon.com.

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  1. […] you come up with a bunch of headlines, you’ll want to test them on different landing pages and see how they work for […]



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