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March 2007

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Sampling

Archive for March, 2007

Featured Question

Cooperative vs. Solo Sampling
Posted by Super from New York, NY, USA on March 1, 2007

What are the pros and cons of cooperative vs. solo sampling programs?

Traditionally, cooperative programs had two advantages. First, they had a lower delivery cost per sample and often, a higher perceived consumer value because of all of the samples in the pack. The thought was that consumers were more likely to keep and use a complete pack, as opposed to a single sample. Solo programs were preferred because the marketer could control all the variables: target, timing, reach, markets, etc. No compromises.

Much has changed recently to tilt towards solo programs. First, by working with your production team, co-packers and sampling supplier to wring out redundant processes and costs; solo sampling doesn't always have a higher price tag. Second, we've seen no difference in trial rates between co-op or solo programs. Deliver the same sample to the same consumer and the trial rate is usually the same whether delivered though a co-op bag or solo execution.

Controlling the variables has a much higher value to marketers today because it's common for sampling to be just one part of a larger, integrated campaign. To achieve the full value of the integrated plan, it's critical that marketers control all the variables across all of the tactics. It's often a false economy to sacrifice that control to save a cent or two on sample delivery, typically a small percent of the total sampling budget.

ROI from Sampling
Posted by Super from New York, NY, USA on March 1, 2007

My management always challenges me to prove the ROI from sampling. Any suggestions?

It is common for "how will we measure this?" to be an afterthought in sampling. Smart marketers START with "how will we measure this" and build the plan from there. For example, if a marketer's ROI is determined by a marketing mix analysis or simply lift at the market level or store level. you can start your planning with some specific "must haves". You will need a specific minimum household or target penetration within the market or store trade areas (and isolate the control markets). The samples must be delivered within a fixed time frame. You need to assure that the product will have an adequate ACV within the test areas during the sampling campaign. Every measurement technique has different requirements, but the idea is to identify the requirements as a first step in order to get the truest ROI from your sampling campaign.

Sampling Programs More Efficient
Posted by Super from New York, NY, USA on March 1, 2007

Sampling is expensive. How can I make my sampling programs more efficient?

Sampling seems expensive on a straight CPM basis, but if you look at cost per trial or cost per conversion, it can be significantly more efficient than other marketing tactics.

There are a couple of keys to making sampling more efficient. First, have measurable objectives and plan against those objectives. For example, if the objective is to maximize trial, then challenge every dollar in the budget: will this generate more trials, at a lower cost per trial, than the alternatives?

Compare sampling alternatives on the total delivered cost (cost of goods, printing, co-packing, freight, cost to deliver to consumers, coupon redemption, etc.). This provides the truest measure of your best option.

Last, when determining your consumer target, consider HH category spend or volume, not just if they are a category user or not. That is, if you are sampling a laundry product, a mom with three kids is significantly more valuable than a single person household, even though both are in the category. Sampling to heavy users may have a higher CPM, but produces a much higher ROI because of the greater purchase and consumption.