Direct Response Marketing

Retail Outlet: Things to Consider When You Test for Success

1 Jul, 2006 By: Donald L. Potter Response

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Retail Outlet

In the world of DRTV, the mantra is, “Test, test, test.” So it might prove helpful to review the common problems encountered in the critical initial testing phase. Getting a handle on things early on will pay off long-term.

Low Call Volume

This is the first cause for concern. Problems in this area must be attended to, because volume drives the business. Start with product concept and positioning as a means of evaluating the situation. Is a perceived consumer need being met and is this the appropriate product to address such needs?

Closely tied to this is the creative approach and execution, which tells the product story by linking the problem and the solution together and demonstrating how the product is the hero that saves the day for the consumer.

Assuming these elements work, is the offer right? Does it provide enough incentive for the consumer to want to place an order, right now? The call-to-action (CTA) won’t be effective unless the viewer’s attention is gained, interest piqued and desires aroused.Things to Consider When You Test for Success.”

Donald L. Potter

Although many products use a “soft offer” (no mention of price) in short-form spots, the price point is an issue that must be dealt with before the sale can be consummated. This won’t happen unless the consumer believes the product represents a value — not necessarily low price, but definitely worth the price.

The media selection is also a vital element in achieving sufficient call volume. From identifying the best way to reach the target audience, to whether local markets or low level network testing is best to the daypart mix to negotiating the best possible rates yet clearing enough spots to make the test valid, the art and science of media buying is going to play a key role in the success of any test program.

Low Conversion Rates

While it’s easy to blame the telemarketing people for not doing their job or to say that IVR (interactive voice response) is cheaper but callers may bail out early, the marketer is responsible for deciding the firm to use and the mode for telemarketing their particular product.

Reviewing the calls will determine if the live operator presentations were effective or if IVR is a turn-off. Were callers pre-sold and ready-to-buy, or did they ask too many questions or resist making a purchase? This could mean that there is a confusing offer that must be simplified. Other issues to watch for are high shipping-and-handling rates or too big a price tag once the upsells are added in to the sale.

Low Upsell Ratio

Here presentation and timing within the telemarketing script are of prime importance to the success of upsells products and continuity programs. The relevance of the offers to the product being advertised and their simplicity for being sold without a demonstration and/or added explanation will help generate more back-end volume. Both live operators and IVR will affect the results, as well.

With more consumers being directed to the marketer’s Web site for cost savings and customer convenience, this vehicle should be part of the test program, with the URL prominently displayed along with the 800 number, and evaluated with the other elements.

If traffic is not meeting expectations, the site should be promoted stronger in the commercial and through a keyword effort. It may be that design and navigation are not consumer-friendly. See if the CTA appears throughout the site and not just on the order page.

Be sure the consumer is being given the opportunity to buy additional upsell items that are not part of the phone script but can be shown on the site — this can mean plus business.

Don Potter is a 45-year veteran of the advertising agency business, a frequent lecturer and the author of the book “The 50+ Boomer: Your Key to 76 Million Consumers.” He can be reached at (818) 728-8266 or via E-mail at don.potter@sbcglobal.net.

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