Question

Topic: Strategy

Direct Mail Test Segment

Posted by apond on 7/13/2010 at 1:15 PM ET 500 Points
Some one in my organization has mentioned a formula that allows you to come up with a statistically significant test cell for Direct Mail.

Does anyone know what this is? Some one mentioned you need a response rate which we have.

If there is no actual "formula" does anyone else have a method they use.

thank you!
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RESPONSES

  • Posted by mgoodman on 7/13/2010 at 1:28 PM Accepted
    I understand all the words in your question, but it's not clear what you are asking. What is the test? How large is the sample? What are you trying to learn/do? What's the real question?
  • Posted by modza on 7/13/2010 at 1:30 PM Accepted
    Several sites offer help with this (listed below). I had a sort of "Direct Mail for Dummies" (not the actual title) years ago, with formulas in it that ended up telling me that 1,000 was a good-enough cell size. But check these:

    https://www.lucidview.com/sample_size.htm

    https://www.prconline.com/education/tools/statsignificance/index.asp

    Michael Odza
  • Posted by apond on 7/13/2010 at 2:21 PM Author
    Thank you for your response

    mgoodman-not sure what other information you need.

    if I am mailing 268,000 and expect a response rate of 1% what quantity should my test segment be in order to make it statistically significant

    Modza-I would assume 1000 would only be large enough for a certain quantity, you would need to increase based on volume. but i could be wrong
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