
4. Take risks. Too often companies don't run tests because they assume they'll fail. They're right. About 70 percent of them will. However, when you consider that one successful test can increase your response by 20 percent, a failure is worth the risk. Set aside budget for testing (e.g., 5 percent of your total marketing spend). Prioritize your test ideas in terms of the most likely to succeed and those with the biggest potential payback. And remember, just because a test fails doesn't mean you can't learn from it. Determine why it failed. This will help you figure out your next breakthrough.

A columnist for Retail Online Integration, George founded HAGUEdirect, a marketing agency. Previously he was a member of the Shawnee Mission, Kan.-based consulting and creative agency J. Schmid & Assoc. He has more than 10 years of experience in circulation, advertising, consulting and financial strategy in the catalog/retail industry. George's expertise includes circulation strategy, mailing execution, response analysis and financial planning. Before joining J. Schmid, George worked as catalog marketing director at Dynamic Resource Group, where he was responsible for marketing and merchandising for the Annie's Attic Needlecraft catalog, the Clotilde Sewing Notions catalog, the House of White Birches Quilter's catalog and three book clubs. George also worked on corporate acquisitions.