{"id":103,"date":"2021-11-23T00:00:00","date_gmt":"2021-11-23T07:00:00","guid":{"rendered":"https:\/\/fishingforcustomers.com\/therell-be-a-test-on-tuesday\/"},"modified":"2022-01-03T07:53:27","modified_gmt":"2022-01-03T14:53:27","slug":"higher-profits-through-testing-of-every-variable","status":"publish","type":"post","link":"https:\/\/develop-my-site.com\/fishing2\/higher-profits-through-testing-of-every-variable\/","title":{"rendered":"Higher Profits Through Testing of Every Variable"},"content":{"rendered":"

\"\"<\/a><\/p>\n

Pretend with me you\u2019ve been conducting a direct mail campaign.<\/p>\n

In testing your headline you\u2019ve discovered that changing its focus from greed to fear increases the response rate from 1.5% to 1.85%.<\/p>\n

Not bad. Three-tenths of a percent. That\u2019s enough to get marketers excited.<\/p>\n

\u201cYou\u2019re kidding<\/em>,\u201d I can almost hear you say. \u201cPeople get excited about a tiny fraction of better response?<\/em>\u201d<\/p>\n

Well, yes. Yes, they do. You see, that tiny fraction amounts to a 23.3% improvement in top line sales. It has an even bigger impact on the bottom line.


\n\"zero<\/a>

Zero point three equals two times<\/p><\/div><\/p>\n

First, Run the Numbers<\/h4>\n

For the sake of this example, let\u2019s assume the following:<\/p>\n

Your selling price is $74.95, and your gross margin is 65%.<\/p>\n

The cost of printing your single-page, one color letter and its envelope, folding, stuffing, and addressing is $0.33 per piece.
\nThe cost of postage (bulk mail) is $0.21 per letter.
\nYou\u2019re paying a list broker $40 per 1,000 names (4 cents each).<\/p><\/blockquote>\n

Add these individual sums, and the cost of promotion becomes $0.58 per lead.<\/p>\n

You mailed 10,000 pieces with the first headline.<\/h4>\n

1.5% of the recipients of the letter purchased: a total of 150 sales. Each sale produced revenue of $74.95, for a total of $11,243.<\/p>\n

You\u2019re working with a 65% margin. Therefore, your gross profit is $7,308.<\/p>\n

It cost $5,800 ($0.58 per lead times 10,000 leads) to make those 150 sales, which makes your net profit on this mailing $1,508.<\/p>\n

Then You Tested Your New Headline.<\/h4>\n

You mailed 10,000 more pieces with the second headline.<\/p>\n

This time, 1.85% of the recipients of your letter bought: a total of 185 sales. \u00a0(This is the three tenths sales lift we mentioned).<\/p>\n

Each sale produced revenue of $74.95, for a total of $13,866.<\/p>\n

You\u2019re still working with a 65% margin, which makes your gross profit is $9,013.<\/p>\n

The cost of promotion is the same $5,800.<\/p>\n

Your net profit with the second headline is now $3,213.<\/p>\n

When you run the numbers, this new headline has more than doubled your profit<\/span><\/strong>.<\/p>\n

Wow.<\/p>\n

Testing Needs to be Mandatory<\/h4>\n

This is why you must test at every stage of the persuasion process. (It’s also why you must keep detailed records of your results).<\/p>\n

Test your headline, test your offer, test the medium, test the frequency of repetition of your message. Test every variable.<\/p>\n

When you find an outcome which works better than what you\u2019ve been doing, make the new way your new standard. \u00a0Then start testing against that.<\/p>\n

It only makes sense that you use the most attractive bait when you’re fishing for customers.<\/p>\n

Your Guide,
\nChuck McKay<\/em><\/p>\n

<\/a>\"MarketingYour Fishing for Customers guide, Chuck McKay<\/a>, gets people to buy more of what you sell.<\/p>\n

Got questions about creating maximum impact through testing of your marketing? Drop Chuck a note at\u00a0ChuckMcKay@ChuckMcKayOnLine.com<\/a>. Or call him at 317-207-0028.<\/p>\n","protected":false},"excerpt":{"rendered":"

An improvement of three-tenths of one percent in response rate can double your profit. <\/p>\n","protected":false},"author":2,"featured_media":20321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[32,59,24,46,159],"tags":[],"class_list":["post-103","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ad-testing","category-return-on-advertising-investment","category-advertising-qa","category-market-segmentation","category-systemic-marketing-tm"],"_links":{"self":[{"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/posts\/103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/comments?post=103"}],"version-history":[{"count":15,"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/posts\/103\/revisions"}],"predecessor-version":[{"id":20324,"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/posts\/103\/revisions\/20324"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/media\/20321"}],"wp:attachment":[{"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/media?parent=103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/categories?post=103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/develop-my-site.com\/fishing2\/wp-json\/wp\/v2\/tags?post=103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}