How and What to Test Effectively

When selecting the test panels from the housefile, one approach might be to nth every third name, so you end up with 40,000 names per group. Again, this method of selecting your test panels must be taken across all of the recency, frequency and monetary (RFM) value segments of your customer file.

If you’d prefer to test to a smaller group of the housefile until actual results are known, you easily can select three test panels of 10,000 customers each. In this case, you would want to take a random nth of 30,000 names from the universe of 120,000 total buyers.