Question

Topic: Student Questions

Help With Direct Mail Test Grid

Posted by L4mg on 9/12/2008 at 1:15 PM ET 200 Points
Hi

Can someone please help...what would be the correct test grid / quantities for this and WHY?

This is the only info given:

Total mailing of 100,000 pieces with 3 prices to test and 3 lists to test.

Current price
Test Price 1
Test Price 2

House List: 100,000 names; expect 2% response rate

Test List A: 100,000 names, can use 25,000 names from hot list; expect 1% response

Test List B: 200,000 names, can use 50,000 names from hot list; expect 1% response


This is set up in one grid with prices down left and lists across the top.

__________House list__Test Lst1___ Test Lst2 __TTL
Cur Price
Test Price 1
Test Price 2




Thank you.

To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by Levon on 9/12/2008 at 1:39 PM Member
    Add a response column and how they responded (telephone, email, etc). Also what area they are responding from as this will give you data as to what markets to target and cover.
  • Posted by arthursc on 9/12/2008 at 2:05 PM Accepted
    Your grid is a little unclear, but generally I risk no more than 15% of my file for testing, since, in fact, most tests do not work. Minimize the risk.

    For an initial price test, more often I would allocate from 5M to 15M per panel, depending on the size of my mailing.

    While I would factor in some assumptions about response rates in determining test panel quantities, as you are doing, I would nonetheless always tend to be conservative about those quantities.

    If an initial test shows promise--let's say you get the 1% response--I'd retest (always, before any rollout, by the way) with significantly larger quantities, up to 5 times the initial quantity if file size permits.

    So if I understand your query correctly, on test "lists" A and B, a pool of 100M each, you're testing 25% of the list.
    I think it's too high a percent.

    If I misunderstood your grid, please clarify and I can further respond if needed.

    Good luck.

    --ac
  • Posted by L4mg on 9/12/2008 at 2:40 PM Author
    to clarify:

    this info was given in the original case:


    Test list A has 100k total names available. 25K of these are hot list names. I can take any quantity.

    Test list B has 200k names total, 50k are hot list names. I can take any quantity.


    I have not decided to test any amount, because I don't know how to pick the optimum amount.

    This question was given to me on an employment test!
    I had no idea what the correct answer or approach is.

    Any help is appreciated.
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Student Questions)