The March 2009 issue of our ‘Sample of the Month’ direct mail case study features our client Baltimore Magazine and their test of a #10 package with a faux label outer.
Package Details
The package is a closed face #10 with a faux label design and a Preferred Resident Discount stamp. Inside is a 4-color preferred resident benefits form, a 4-color buckslip and a BRE (business reply envelope). The offer is 12 issues for $9.95.
—> Click Here for Front and Inside Pictures
Project Summary
Baltimore Magazine’s control is a simple monarch voucher package with a small 4-color form and BRE. In a recent mailing, they tested this control against the more expensive faux label package above. According to the Baltimore Magazine’s Circulation Director, “It’s a handsome package and generates an element of curiosity.”
Every component of the faux label package is more expensive including the lettershop because of the match mailing required due to the closed face outer envelope and personalized form. Our client was hopeful, however, that the increase in response from the nicer creative would keep the cost per order in check with their control package.
Project Results
Close, but no cigar — but very promising. The faux label package grossed the most orders…and even though it was much more expensive than the voucher control, the cost per order for the test was only $1 more than the control.
Furthermore, two price points for the faux label package were tested: $9.95 and $12 — $9.95 was the clear winner.
Future Plans
Since the faux label package showed good potential, our client is planning on testing a few variations to see if she can trim the cost, but keep the response rate consistent. For example, one option is to omit the 4-color buckslip. If the response rate holds up, this could possibly turn the test into the control.
Want Samples?
Please email your address and project details to Ryan Cote:
ryan@ballantine.com.
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5 comments ↓
Interesting report.
Could you show us a visual of the contents and overall specifications of what you mean by “voucher package”?
You have mentioned this several times, but I am not real clear about your terminology.
Thanks, Ted
Hi Ted – good question. The specific definition of a voucher package will vary depending on who you speak with…but generally speaking, a voucher is a basic package consisting of a windowed outer envelope, a statement of benefits type form and a BRE. That’s it.
Here’s a visual example: http://www.ballantine.com/october/controlfront.html
The voucher package for this case study consisted of a small monarch sized outer envelope (smaller than a #10), a small 6.5″ x 7.125″ form and a BRE.
Hope this helps.
It seems to me that they are testing small things rather than breakthrough ideas.
I know many clients approach their testing in this manner, but breakthroughs almost always happen at the offer level or dramatically different main selling propositions.
They may be testing major things as well.
But I would abandon the “tweaking” strategy to more meaningful testing. Management time and testing budgets always come with a limit. So save your bullets for the big game.
Our definition of a breakthrough is a reduction in the cost per sale of 25%+.
Oops. I didn’t see that you tested pricing. That is definitely a big item.
But format tweaking was what I was referring to.
Sorry for the oversight.:)
Ted
Your information is both very constructive and relevant at the same time. Being a newcomer to this industry I still have a long way ahead of me. I did not realize that DM has so many facets, as described by you. Of course I do know that there are many marketing vehicles and I also know that you have to pick the bests making investments in the modern marketing tools profitable. The question in these times of financial turmoil is how to prove your points. A solid data base is one way but it has historical data only, who has the tools to predict future results, like response rates etc? To me there is one more important question; how to turn creative ideas into solid business?
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