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October 1998
THE VALUE OF A/B SPLITS

Tracking list response is a key part of a successful, long-term direct marketing strategy. But did you know there's a way to learn more than simply which lists perform better than others?

Next time you place a list order, consider splitting individual lists into sub-groups based on criteria such as job function and company size. In direct marketing parlance, this is known as an "A/B Split."

For example, let's say for a given list you've selected job functions ranging from software developers to IT managers and CIOs. Which of these groups will generate the higher response? If they all have the same source code, you'll never know.

When you order the list, specify that you want the file to be split based on the criteria you specify (i.e., developers in Group "A" and management titles in Group "B") and that the names should be keycoded accordingly (so your lettershop can identify which records belong to which group.) Then assign a unique source code to each group. (It's rather like treating one list as if it were actually two.)

A/B splits are useful for testing the value of job functions, company sizes, industries, purchase authority, and more. It's a good way to evaluate basic assumptions - for example, your manager insists on targeting management titles only. Does that make sense? Here's a way to find out.

A/B splits aren't free - list managers typically charge an extra $5 per thousand names. But the information you gain can pay for itself many times over.
                                                                                                                             





 
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