As most of you know, I'm not a financial guru. I'm a marketing guy. That is what floats my boat.
That's why I find it interesting when people use the word "tested" when they pitch different products. I'm always surprised at how often that word is woven into the pitch. They say things like, "Our ABC cleanser was back tested and outperformed XYZ cleanser." When they say something is "tested," it's almost like saying it's proven. This is very important in today's business environment. People want things that are proven because they are in fear of what could happen. For example, they have seen their investment portfolios crushed and they are afraid of what might happen next.
So how many of you really test your marketing to make sure it's on target and that you're getting the most out of it? I'm not talking about asking your spouse which marketing headline he or she likes better. Here's one of my favorites – asking the person selling you ad space which ad they like better. What I'm talking about is honest-to-goodness A/B split run tests. (For those of you who are not marketing experts, A/B split tests are done by changing one variable in an ad, for example, to see if the new variable works better. My company usually tests headlines because they can have the biggest impact on an ad's results.)
Someone is reading this and thinking, "Why test?" Well, why do you diversify a portfolio? Because if you knew the one headline in your marketing that would bring you lots of profitable business forever or the one investment that was sure to pay off handsomely with no end in sight, you wouldn't be reading this column. You would be relaxing on the beach on your private island with someone feeding you grapes. In the marketing world, testing is done to make sure that what worked yesterday still works today. Testing also is done to discover what may work even better.
I've been around financial services for almost 20 years and I've seen many different marketing phases. The marketing method or tool that is in vogue one day is out the next. Marketing that caused clients to flock to your office or seminars this month is sometimes a dud a few months later. This is a natural process and that's why financial advisors need to constantly test their way to success.
So how do you test your marketing? Following are a few simple rules.
Testing any one variable is far better than not testing at all. Sounds simple doesn't it? But very few people invest the time and money to test. Changing a single word in a headline for an ad or a direct mail piece can double or triple the response rate. Think about these simple terms in a headline – "IRS" vs. "Uncle Sam." Do most people want to give their money to the IRS? What if you called it "hard earned money" instead of just "money"? Testing simple word choices can have a huge impact on your marketing.
Next, unless you really know how to test, only test one variable at a time. It's not unusual for someone to tell me they are conducting a test in which they run two totally different ads in two similar magazines. That's a huge mistake. I always ask them the same question: "Do you know what worked?" It saddens me that the answer is always the same: "No." If you change more than one variable, you don't know which one worked or didn't work. There are systems that do multiple variable testing, but this is way beyond what most people are ready for.
When you find a headline that works, stick with it and keep testing. When we help a client with their marketing and we have a headline that truly works, we make it our "control" and strive to beat the control. This is a great way to generate ongoing improvement. The problem is that a great headline that worked for a seminar one week may fail two or three weeks later. This can happen when other variables change. The economy could have suddenly changed as it did last September. Maybe the weather changed. My point is that you must constantly test and constantly strive for better results.
Finally, when it comes to testing, less is more. You can change one word in a headline and drastically alter the results. You don't need to have wildly different headlines to do a test. They just need to be a little different.
I know that I've talked mostly about headlines, but you should test ALL areas of your marketing. Test your offers, business hours, location of event and even the way people can contact you. Each of these will affect your overall results.
Please note that testing needs to be tracked past the level of the response rate all the way to the point of bottom line results. I hear all too often about a seminar that was amazing because the room was SRO (Standing Room Only). But as I drill down, I discover that people came because they wanted the steak dinner. No one became a client. I would rather have one of my clients treat two prospects to a nice dinner. Sure, the prospects will enjoy the meal, but they are there because they may want to do business. Perhaps business for years to come.
If you have not started testing your marketing, please do so today!
Martin R. Baird is chief executive officer of Robinson & Associates, Inc., a consulting company that helps financial professionals measure and manage the quality of client service and improvements to their internal operations to enhance business performance and increase revenues. He is a highly regarded speaker in the areas of marketing and client retention and development. Baird is author of "The 7 Deadly Sins of Advisor Marketing," a book that offers easy-to-implement marketing ideas for financial professionals. He may be reached at 480-991-6420 or mbaird@raresults.com. |
