Overcoming Problems in Direct Mail Testing

When asked about new ideas and strategies for future campaigns, at least 79% of marketers indicated they are likely to test at least one (if not all) of these elements: list, offer, creative, and digital integration. Yet, testing direct mail campaigns has challenges that can derail even the most well-thought-out plans. As seasoned experts in direct mail marketing and data analysis, we’ve observed several problems in direct mail testing that are often overlooked.

Prefer to listen? Check out our podcast The Direct Effect: Overcoming Problems in Direct Mail Testing

Four Problems in Direct Mail Testing

There’s a lot that can go sideways if you’re not careful. So, let’s break down the four big headaches you might run into when testing direct mail and discuss how our agency’s approach addresses these problems head-on.

Problem 1: Wasting Spend

Budget limitations or misallocation can cause significant problems in direct mail testing. When resources are tight, you face a dilemma: either invest heavily in promising strategies with the risk of poor scalability, or cautiously test unproven tactics and risk underinvestment in potential successes.

Navigating this tightrope requires an approach focused on learning rather than just earning. By testing as broadly as possible, it is easier to reduce waste and determine which factors move the needle to the greatest degree. From here, you can narrow your focus on incremental testing opportunities. Even if some tests fail, a big win can outweigh smaller losses.

By combining the efficiency of A/B testing with the comprehensive insights of multivariate testing, SeQuel maximizes testing efficiency without requiring an inflated budget. FaQtor Test™ lets you test multiple variables simultaneously, providing quicker, more substantial insights. Our team ensures your campaign benefits from necessary optimization while overcoming any limitations imposed by budget constraints.

Problem 2: Lack of Expertise

Campaign testing is a nuanced discipline that demands a high level of expertise, but many organizations, particularly those new to the channel, lack the necessary in-house skills. Many businesses often find themselves limited to basic A/B testing or avoid testing altogether. Additionally, knowledge gaps can lead to inefficient testing processes and inaccurate conclusions.

Sensibly testing marketing channels like direct mail could have a lasting effect on your brand’s current and future health. Download this e-book to learn what to consider before investing in a direct mail test.

Most of the time, if a brand is not testing, it’s because inefficient testing methodologies have created a risk-averse culture within the organization. SeQuel Response clients gain access to a team that can navigate the complexities of direct mail marketing. This collaboration promises effective and innovative campaigns, overcoming the limitations of in-house capabilities.

Problem 3: Overlooking Digital Pre-Testing

Digital pre-testing is a way to test possible creative elements and even audiences for your direct mail campaign in a digital environment. This is great for brands who have never mailed before or for current mailers looking to efficiently test a broad range of incremental ideas. Many marketers neglect this opportunity, resulting in missed opportunities for refinement prior to launching a full-scale direct mail campaign.

With digital pre-testing, you can test:

We understand the importance of refining your message before making a substantial investment. Our clients’ campaigns are thoroughly vetted before hitting the mailbox, maximizing their impact. Leveraging digital strategies such as ProspeQtor™ enables you to test your audiences, messaging, creative, and offers on a smaller scale. SeQuel helped this brand conduct digital pre-testing to zero in on copy and position variations that performed well with the target audience.

Problem 4: Focusing Too Heavily on Profit

Many direct marketers judge a test’s performance based on the aggregate response rate or cost per acquisition of the entire testing effort. While these are important metrics to consider, the wrong definition of “success” can misinform decisions and strategies that fail to account for the broader impact of your campaign.

Marketing analytics influence just over half (53%) of marketing decisions. Advocate for a more holistic approach to campaign evaluation by incorporating metrics such as sales rate, leads, customer acquisition cost (CAC), cost per lead (CPL), return on investment (ROI), return on ad spend (ROAS), and lifetime customer value (LTV).

Consider this: the seemingly high CPA of direct mail can make much more sense for your budget when you view it through the LTV lens. We tested a concept for an identity theft protection company and found that while the overall sales rate was 15% lower than the control package, the customers who did convert were 50% more likely to purchase the premium version of the product. This resulted in a 6.25% higher revenue per piece mailed compared to the control.

At SeQuel Response, our work doesn’t stop when your packages reach the mailbox. We understand that the real magic happens in the post-campaign analysis. That’s why our in-depth analytics reporting provides actionable insights that allow you to make smarter decisions to optimize your direct mail performance faster.

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FaQtor Test™ provides a comprehensive solution to the most common problems in direct mail testing, from budget limitations and lack of expertise to inefficient testing processes. When you partner with SeQuel Response, your direct mail campaigns are optimized for success and deliver maximum impact with every mailing.

If you’re not satisfied with the results of your current testing strategy, start a conversation with a SeQuel strategist today.