Grow Sales and Your Bottom Line
Test A — Free shipping and handling
Test B — Free electronic product with any order of more than $200
Test C — Graduated premiums with orders of more than $100, $200 and $300
Test D — Free gift certificates for video rental and pizza with each order
Measure results: Compare results of each test against the control (no offer) and determine gain. A break-even analysis will tell you what percentage of gain you'll need to cover the cost of each test.
Test a new customer service feature. Perhaps you're opening a new warehouse to provide better service to a section of the country. Or you've launched an updated Web site or phone service to improve customer ordering and order turnaround. Let customers know! An insert that stands out in your catalog will improve readability and customer comprehension.
Measure results: This is a bit more difficult to measure. Orders taken per month vs. a comparable time last year is one way to measure the impact of a new service such as I've described above.
Test a new customer loyalty scheme. Introducing a loyalty program is a much bigger deal that takes a lot of planning and research before implementing. If all your customer research indicates that a loyalty program will improve retention and lifetime value, by all means, do it. An insert and special wrap might both be used to introduce such a program.
Measure results: It's difficult to execute an A/B test on a loyalty program. Use the results from your previous focus group sessions as well as customer research to determine if such a plan will produce the results you want.
In summary, explore the use of catalog inserts and wraps to help you grow sales and boost profits.
Jack Schmid is the founder of J. Schmid & Assoc., a catalog consultancy. Call (913) 236-8988.