Predictive Model Fast-Tracks Direct Mail Testing, Lowers Costs | Nonprofit

8/19/2024 RRD

Acuity by RRD^SM helps leading nonprofit deploy powerful diagnostics, shift away from costly A/B creative testing

CHALLENGE

A large nonprofit organization sought to shorten timelines, reduce costs, and gain clear insight into creative variables within its direct mail campaigns. However, with little or no predictive research, using a traditional sit-and-wait approach to testing competing creative elements was proving to be inefficient and offered limited insights. 

Heavily invested in direct mail marketing, the organization had a direct mail snap pack campaign in place in some creative shape or form for a very long time. It was being tested tirelessly every month. Five- or six-way panel tests were commonplace, with each differentiator being fairly small. The organization sought external help and a more efficient and cost-effective means of testing creative. 

SOLUTION

The organization entrusted RRD to solve these challenges. RRD deployed Acuity by RRD^SM , a unique solution that pairs online research techniques with virtual creative testing technology. Acuity was developed to reduce production costs and increase engagement rates through improved targeting. Acuity allowed the organization to tweak and test subtleties without the financial or time commitments they were accustomed to.  

Traditional testing eventually yields results but lacks explanatory power. In this case, a diagnostics test also served as a critical component of Acuity’s effectiveness. By obtaining useful feedback on creative components, the client was able to find out why their target audiences were reacting as they did.

Acuity simulates consumer behavior and provides insights into how different creative elements will be received by target audiences. Therefore, Acuity can also identify audience segments that react better or worse to an offering. In this test, females reacted to one of the premiums more positively than males — valuable insight typically not available through traditional testing methods.

RESULTS

Acuity by RRD obtained fast results and very detailed feedback that directly influenced the organization’s campaigns — all while reducing postage and production costs. Key test differences included:

Client’s traditional mail test:

• Three competing gift premiums to encourage new memberships 
• 200K direct mail packages of each offer sent to identical target audiences
• 600K mail pieces in total with postage
• $115K+ in gift and postage costs
• 4-6 months to collect returns to identify which gift premium performed best

Acuity by RRD online test:

• 4-6 weeks to predict winning premium
• Fewer than 2.9K target audience subjects were sampled
• $75K in cost savings 

The Acuity test also delivered numerous diagnostics to improve future messaging. The diagnostics test in this study identified a survey question on the back of a letter many participants disliked. The response was so strong that the client removed this element from future mailings.