How Design of Experiment testing of multiple creative variables quickly identified the optimal offer combination – and doubled response.

Overview
US banks have been marketing Accidental Death for more than 20 years via direct mail and telemarketing and this has created a highly saturated market. Faced with further restrictions on telemarketing, one bank asked ReMark to design a new product that could be marketed via mail.

Our answer was a bonus AD product that pays a lump sum benefit of one million dollars if a passenger dies while traveling on public transport. It was the million dollar ‘hook’.

This offer had previously been successful via telemarketing but we needed to transfer it successfully to the direct mail channel without spending too much time and money on testing.

Our answer was a bonus AD product that pays a lump sum benefit of $1 million

Strategy
Using design of experiment (DOE) techniques, we tested multiple creative variables.

DOE allows multiple creative packages to be tested in the same mailing by splitting the data into equal smaller segments of the same size and make-up. We tested the outer envelope, letter and application. Eight segments were created to test against the control.

Result
The test quickly identified the winning combination – one that almost doubled response from 0.65% to 1.28%. We could never have identified this optimal combination without testing, and DOE enabled us to test quickly and efficiently.

Insight
Allowing for the testing of two or more factors within segments helped us identify subsets of customer behaviour and understand and compare their propensity to buy.