Dear Dr. pROfIt
By Kevin Hillstrom
About Kevin
Kevin Hilstrom is president of MineThatData, a consultancy that helps CEOs understand the complex relationship between advertising, customers, products, brands and channels. His clients include billion dollar retailers, international direct marketers, publishers, catalog brands and online pure-plays.
Prior to founding MineThatData, Kevin spent nearly 20 years in multichannel retailing at some of the most well-known brands in the U.S., including Nordstrom, where he was the vice president of database marketing, Eddie Bauer and Lands’ End. Kevin is also author of numerous books, including his most recent, “Online Marketing Simulations,” available at Amazon.com.
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Test to Find the Right Paper for You
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Dr. pROfIt: I don’t think there's a need to convince anybody what should be done. The optimal strategy can be derived in the form of a test. Ask your marketing department to randomly divide customers into three segments. The first segment receives catalogs printed on better-quality paper; the second segment receives catalogs printed on the same paper quality you currently use; and the third segment receives catalogs printed on lower-quality paper than what you currently use.
It's important to test each segment. Most often marketers want to learn how an improved branding experience may or may not lead to increased sales; not as many want to test how a marginalized branding experience may or may not lead to increased sales.
Execute this test once every six months — well, at least once a year if you can afford to. The test will identify the paper weight that leads to the most profit. When you execute the next test, measure one weight above and one weight below your current paper weight. This way you're always identifying what the best strategy is. If customer behavior shifts over time, you'll easily align yourself with the optimal paper weight.
Marketers often fall into two camps: those who want catalogs printed on expensive paper in order to offer customers an outstanding branding experience, and those who want to minimize corporate expense. The second camp attempts to minimize expense by using inexpensive paper.
My advice: Listen to your customers. By executing tests, you identify the strategy that customers indicate is most profitable. It's always best to let customers pick the most profitable strategy!
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COMMENTS
Click here to leave a comment...First thing is what the printer will charge you for using different weights and grades of paper in a test on press. You can't just go from one roll to the next without adjusting ink levels.
Bill Fitzgerald of Hanover House Industries did this test probably twenty years ago and saw no difference in response from #3 free sheet to #5 groundwood coated. Hence, they chose the #5 in most cases.
Personally I do believe an upscale jewelry or fashion cataloger would benefit from an upgrade in paper quality
First thing is what the printer will charge you for using different weights and grades of paper in a test on press. You can't just go from one roll to the next without adjusting ink levels.
Bill Fitzgerald of Hanover House Industries did this test probably twenty years ago and saw no difference in response from #3 free sheet to #5 groundwood coated. Hence, they chose the #5 in most cases.
Personally I do believe an upscale jewelry or fashion cataloger would benefit from an upgrade in paper quality