Test and Measure your Marketing

In any business, the term testing and measuring should be one we use and think about frequently.

It should be an essential part of our ongoing daily/weekly & monthly tasks. What are we talking about? It’s quite simple…I’ll explain.

Testing – Why is it important?

We probably don’t realise it but we test many things in our daily lives. For example, when buying a car, you’d always take it for a test drive wouldn’t you?

So taking this idea of testing stuff out before we make a decision into our business, many businesses will embark upon expensive marketing campaigns with little or no idea of the outcome. These same businesses will spend hundreds, sometimes thousands of pounds on an ad campaign and hope they get a response. Unless we’re certain of the result we’ll get, we need to be testing any new campaign before we spend all of our marketing money on it.

It may be a whale of an idea… but, lets face it…no one knows with certainty, that it’s going to work.

It’s a fact that 80% of advertising doesn’t work, we also know that advertising itself does work, (it’s a multi-billion £ industry around the world after all), we’ve just got to find what works for us!

Now given this task and the level of uncertainty around its success, why would we not test the outcome of what we do?

So, when considering any campaign, think about how you’ll test its level of success. Remember marketing is an investment, NOT an expense, i.e. it should return more than we spend on it. So we need to be testing to see that our investment is working?


So let’s look at measuring. There is little point in us doing testing unless we follow through with some type of analysis of the results. It’d be like having our test drive and not considering how the new car measures up against our old one

Now, back in our business… there is no point in testing the outcome of any type of marketing campaign with no measurement of it. The results will tell us if the campaign was a success, or not.

Here’s an example…

A test mailing to 500 households yields 10 responses. Each response results in an average sale of £150 with a margin of 40% that adds £60 to the company’s profits which is £600 overall (£60 x 10 responses). Still with me?

Lets assume the overall cost of the mailing is £1 each or £500 in all. We made a net profit of £100 (£600 profit less costs of £500).

The campaign appears to be a winner!

One important point to note here, notice how as this was a TEST campaign, we did it on a small scale, to test out the offer, the format, the location etc etc. i.e. test out the idea without spending all of our marketing money on it.

So what’s next? Well now that we’ve found something that seems to work, let’s ramp it up and do more of it.

Remember though to continue your testing & measuring even on the stuff that’s working. What works today will not work forever and you’ll need to know when that change happens.

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6 Responses to Test and Measure your Marketing

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