Strategy: Anatomy of a Marketing Test

The results of any test should include a contribution to profit and overhead analysis. On the surface, test results might look good. But you need to know if the offer and/or test can be cost-justified after all expenses have been considered — including the cost of the offer.

Do your homework. Know how much you need to increase the response rate and/or average order size to cost-justify an offer. For any test to be successful, it must increase the contribution to profit and overhead.