A blog on personal finance (banking, saving, budgeting and investing) and personal entrepreneurship.
December 22 7 Comments latest by Marcus
Look closely.
My friend got both of these offers mailed to him recently.


Notice the different offers, the different designs, even the salutation “Dear ___.” This is how real marketing is done–not by handwavy marketers saying “I think red is better!” but by actual, rigorous data analysis.
Many sophisticated web sites use split tests to see what really works. For example, when you’re browsing Amazon, you’re often in an experimental group to see what page elements produce more clicks, purchases, or other target behaviors. Just recently, for example, I saw first-hand evidence of how changing an email’s subject line can produce a staggering difference in response rates (over 400%). Although the concept originates in direct marketing, you rarely see split tests offline because you usually only see one version of the test. My friend just happened to receive two different copies of the same mailing, although there are probably dozens more.
Does it make you queasy to think that the next email you get from JCrew or the next time you visit Bestbuy.com, it’s probably been tested against thousands of other people? Maybe. But I’d rather have a company optimizing reasonable offers by adjusting positioning, visual design, etc than by making opportunistic sales pitches to people who don’t know any better.
Somehow this became marketing + ethics day, but I just thought it was interesting. Have a great holiday weekend…shopping.
More on optimization in my delicious bookmarks here, here, and here.
Subscribe to my free newsletter for getting rich
I'm a recent graduate of Stanford, where I studied technology and psychology. Now I'm the co-founder & VP of Marketing for PBwiki, a wiki startup in Silicon Valley.
I speak at companies and schools on personal finance and entrepreneurship.
Invite me to yours.I'm thrilled to announce that I've signed a book deal with Workman Publishing for the I Will Teach You To Be Rich book.
More details about the book.
Popular Posts
Asset allocation
Book reviews
Consumerism
Cool images
Credit cards
Friday Entrepreneurs
Introductory Articles
Investing
Investor psychology
Miscellaneous
My favorite financial links
Personal entrepreneurship
Press
Real estate
Saving
Stories about customer service
Survey results about money
Taxes
The Money Diaries
Videos
Women and money
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
Older articles...
Copyright © 2007 Ramit Sethi. All rights reserved.
COMMENTS
Leave yours...
Yan
December 22nd, 2006
A very interesting observation. Bloggers experiment with ads layout all the time. This is really marketing taken to extreme...
Anita
December 22nd, 2006
I can never tell the difference between any of them, which is why I just ignore any marketing materials I receive.
Fashion Industry Ceo
December 23rd, 2006
they have different apr rates!
Nagel
December 24th, 2006
I am not the least surprised by this. This is typical of large companies--especially credit card companies (or should I say loan sharks).
bleh
December 24th, 2006
And they put a 0 after the 3.9 to make it look better..
Little Sean
December 29th, 2006
Which one is supposed to be better? They look about the same to me.
Marcus
January 1st, 2007
I wonder if I get sent split test credit card applications in the mail. Since I immediately rip them up, I wouldn't know.
What I'd really like to know is whether Visa is really better than Discover.