A blog on personal finance (banking, saving, budgeting and investing) and personal entrepreneurship.

 
 

What’s the difference between these two images?

December 22 7 Comments latest by Marcus

Welcome to I Will Teach You To Be Rich, a blog on personal finance and entrepreneurship


No, it's not a scam. Featured in the Wall Street Journal, New York Times, NPR and CNBC.
Click here to see my most popular articles and advice.

Look closely.

My friend got both of these offers mailed to him recently.

Mastercard offer 1

* * *

Mastercard offer 2

(Click to see larger photos.)

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.



1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading ... Loading ...


Print Share: Digg/Del.icio.us/Permalink

 

Have some cookies and a 177% APR

Welcome new readers

 

Related Articles

 

Subscribe to my free newsletter for getting rich

 

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.

Leave your comment

Name

    Required

Email

    Required, but never displayed

Website

    Optional

Comment
Some HTML Allowed

 

 

About Me

More Info / Contact Me
 

I'm Ramit Sethi.

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.

Speaking

I speak at companies and schools on personal finance and entrepreneurship.

Invite me to yours.

The Book

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.
 
 

Subscribe

Atom / RSS Feed
 
 
 
 

Recommended Reading