Marketers often struggle to know what metrics to use when trying to decide on the positioning of their marketing collateral. This can lead to many problems. At MECLABS Institute, the parent company of MarketingExperiments, we have run experiments and tests for over 20 years to help answer this question.
Customers take many actions when moving through the funnel, but what is the ultimate goal the company is trying to achieve with their marketing collateral? By answering this question, companies can best determine what the most important KPI is to measure.
To best illustrate this point, let’s walk through an experiment that was run regarding metrics. By reviewing this experiment we will understand how important it is to have a clearly defined idea of what the ultimate goal is for your marketing collateral.
Background: A large newspaper company offering various subscription options.
Goal: To determine the optimal regular price point after the introductory discounted offer rate.
Research Question: Which price point will generate the greatest financial return?
Test Design: A/B split test
Subscription services often offer a discounted introductory rate for new subscribers. This gives potential subscribers a low-risk opportunity to try out the service for a period of time before the cost defaults to the regular full price. In this test, The Boston Globe team hoped to determine the optimal price point for a monthly subscription after the introductory offer rate expired.