As reported in the December 20, 2010 issue of
Newsweek:
51% of Americans believe that in their lifetime,
scientists will clone dinosaurs before Congress
will fix Social Security.
While I find this hilarious - just the fact that a reputable
organization would even bother to track this kind of
meaningless information - it also demonstrates how
misleading math and statistics can be.
In this example, it's simply meaningless. But when it
comes to marketing math, even the most trusted data
we've been told to track can actually kill your sales.
=======================================
How conventional marketing math gives you
"false positives"
=======================================
One of the most common marketing statistics we've
all been indoctrinated to track is response rate.
Supposedly, the higher your response rate is, the more
money you'll make.
But if you buy into this flawed logic, you could be doing
your business serious harm. For example, I recently
tested 3 subject lines to see which pulled best. All were
used to promote a similar service and I tested them for
about six months. Take a look at them and see if you can
pick the winner:
Cut and paste email increases response 142%
Here's exactly why you aren't getting any traffic
What I taught the French about romance
One of these subject lines generated stronger response
than the other two. And according to conventional
marketing math, that would be the subject line I should
continue to use. But as I said, that logic is seriously
flawed, because if I had done that, I would have lost
a serious amount of money.
I've made a 10-minute video that shows you the winner
of my subject line test and reveals why the conventional
marketing math is so flawed. Most importantly it shows
you how and why one of the other subject lines generated
10 times as much revenue as the subject line that produced
the strongest response.
It also includes a powerful lesson on what almost every
business owner or entrepreneur gets wrong when
measuring their results. And how to easily fix that before
it kills your sales. You can watch this video by clicking
here:
www.ProfitAlchemy.com/subject-test
=====================================
How 2% can be far more profitable than 10%
=====================================
Let me close by giving you one more example that
will help you avoid the damaging pitfalls of conventional
marketing math. If you were to believe what the experts
tell you about response rates, you would always choose
a 10% response rate over a 2% response rate, wouldn't
you agree?
But that could spell big trouble.
Response rate on its own is meaningless at best, and
extremely damaging at worst. Look, if you're selling
a $29 pet hair removal brush, even with a response
rate of 10%, you may barely break even, depending
on how much it costs you go generate each lead
and what your manufacturing and fulfillment costs
are.
But if you're selling $7,000 diamond bracelets,
you'd be ecstatic with just a 2% response rate. After
factoring in the cost to generate each lead (even if
its double what it costs to generate a pet hair brush
lead) and all your other expenses, your return on
investment would be enormous.
So buying into the conventional wisdom on response
rate actually gives you misleading information. And
as you've seen, it can be quite damaging if you don't
dig deeper.
Regards,
Bob Serling, Founder
Profit Alchemy, Inc.
2039 Bruceala Court, Cardiff, CA 92007, USA
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