Split Testing & ROI

Multimedia Messaging Service (MMS) has never been a low cost option, although when used well it does produce great ROI results.  It is important for organisations embarking on using MMS to “road test” their offers, ideas, and imagery before embarking on big campaigns.

MMS works, proof of its success is shown  in the USA, where from 2010 to 2013 MMS grew 70% from 57 Billion to 96 Billion messages.  However, when low cost, easy to use, visually powerful email messaging services came to market the cost of MMS made it commercially difficult, despite the ROI numbers.

MMS still carriers a higher cost than email.  However, marketers are seeing what appears to be an irreversible trend in the diminishing value of the email channel.  Consumer data suggests that over 90% of consumers prefer messaging above email and direct phone contact and so MMS is again growing as a viable commercial delivery channel.

MMS pricing remains an issue. However, SNIPER has an inbuilt split testing tool that enables marketers to easily run multiple small batch tests, and reduce campaign risk – and this tool has already saved or made our clients hundreds of thousands of dollars –  all depends on the way you look at it.

Here is a real life example:

Client had almost 70,000 inactive clients they wanted to re-contact,  These clients had not opened an email or purchased in a long time – and this SNIPER user decided to run a re-activation campaign.

ONLY SNIPER enabled this client to run multiple (7)  small batch tests of 500 messages to check if their clients responded better to a percentage discount or a cash value gift card on a minimum order value of $50. They also tested colours, imagery, the value of the cash cards at $10, $15 and $20.

The lowest value conversion group was 4.5%.  You do the math, assuming 4.5% of 70,000 took up the minimum spend of $50 –   that’s 3,150 clients spending $50 totalling revenue of $157,500.

The highest value conversion group was 17.5%.  So based on 17.5% of the 70,000 taking up the offer of a minimum spend of $50 –   that’s 12,250 clients spending at least $50, resulting in potential minimum revenues of  $612,500.

User SNIPER’s split testing cost our client less than $2,000 and if they hadn’t tested, they may have forfeited over $400,000 in revenue.

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