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CATALOGUE & PRINT ☛ WEB VERSION: Click Here


The holdout test that goes the other way


By Bill LaPierre, Datamann, USA


It seems that I have written endlessly this past year about the importance of doing holdout tests. It also seems that you paid attention. Many of you – clients as well as non-clients – have emailed me to let me know that you are doing them.


M


any of the holdout test results I’ve reviewed for clients showed


that the increase in demand from the names mailed is not that great – usually in the 30 per cent to 40 per cent range. Said another way, 60 per cent to 70 per cent of the sales will come in anyway without a catalogue. And when you back out the costs of the catalogue from the segment of names held out (not mailed), often this segment is more profitable


EXPERT ROSTER


than the names mailed. Woo- hoo!


But what if they aren’t? What if the holdout test shows that the names held out just don’t responded at all unless they get mailed a catalogue? (I’ve yet to see the results of a holdout test where there are zero orders and sales.) But even if there is some modest response from the names held out, what happens if the names mailed responded 200


per cent better than the names held out?


Some of you might consider this a victory – the catalogue lives to fight another day! Everyone who loves a catalogue – including me – will usually breathe a sigh of relief as it means that the company will keep mailing catalogues.


But it also means that this mailer is in trouble, for a variety of reasons.


FOR INCLUSION CALL THE CLASSIFIEDS TEAM ON 0208 092 5227 ISSUE NUMBER 258 | SPRING 2021 | ISSN 2049-8993


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