How Incrementality Testing Can Solve All Your Problems as a Marketing Leader

As a marketing leader in the world of Direct-to-Consumer (DTC) brands, you face unique challenges. Scaling growth, delivering personalized experiences, and maintaining an effective omnichannel presence can be tough. Incrementality testing is your secret weapon, and Stella makes it incredibly easy to conduct, analyze, and act on the results. Let’s dive in.

Scaling and Sustaining Growth

Acquiring New Customers Cost-Effectively

With competition ramping up, acquiring new customers without overspending is crucial. Incrementality testing helps you understand which marketing channels actually drive new customer acquisitions. By isolating the impact of each campaign, you can identify the most cost-effective strategies and allocate your budget wisely.

Example: You might run an incrementality test to compare the effectiveness of TikTok ads versus Instagram ads. By holding out a control group that doesn't see TikTok ads, you can measure the true incremental lift in new customers generated by TikTok, helping you decide where to focus your efforts.

Retaining Existing Customers and Driving Repeat Purchases

It's not just about acquiring new customers; retaining them is key. Incrementality testing helps optimize retention campaigns. By testing different strategies, such as loyalty programs or personalized emails, you can see which tactics boost repeat purchases and customer lifetime value.

Example: Launch a loyalty program and use incrementality testing to measure its impact on repeat purchases compared to a control group. The insights will show if the loyalty program is enhancing customer retention.

Data and Personalization

Collecting and Analyzing Customer Data

Delivering a personalized customer experience requires deep understanding. Incrementality testing lets you experiment with different data collection methods and personalization tactics to see what resonates with your audience.

Example: Test personalized product recommendations against generic ones on your website. Analyze the incremental lift in conversion rates to fine-tune your recommendation algorithms for maximum impact.

Integrating Data Sources for a Unified Customer View

A unified view of your customer is critical for personalized marketing. Incrementality testing helps validate the effectiveness of integrating different data sources.

Example: Integrate CRM data with online behavior data to create personalized email campaigns. Test these campaigns against a control group receiving non-personalized emails to measure the incremental lift in engagement and sales, proving the value of your data integration efforts.

Omnichannel Presence

Strong Presence Across Owned Channels and Marketplaces

Maintaining a consistent brand presence across all channels is vital. Incrementality testing helps you determine which channels and strategies drive the most value, ensuring you invest in the right areas.

Example: Test the impact of launching new product lines on your own website versus third-party marketplaces. Measure the incremental lift in sales from each channel to decide where to prioritize your efforts.

Optimizing for Mobile Commerce

With mobile usage growing, ensuring your mobile commerce experience is top-notch is crucial. Incrementality testing lets you test different mobile strategies to see which ones drive the most conversions.

Example: Launch a new mobile app feature and use incrementality testing to measure its impact on user engagement and sales compared to the existing app version. This helps you understand if the new feature is truly driving incremental value.

Why Stella’s Incrementality Testing Tool is Your Best Ally

Easy to Use, Actionable Insights

Stella’s platform makes incrementality testing simple. With our intuitive interface, you can set up tests, run analyses, and get actionable insights without needing a data science background.

Use Stella’s Incrementality Tool to ingest all of your campaign data. Stella walks you through the best set up structure for your specific incrementality test like defining the control and test group, the length of the test, and how much investment is needed to reach statistical significance.

Inexpensive and Effective

Unlike other tools, Stella’s incrementality testing tool is the most cost-effective solution available, making it accessible for brands of all sizes. Typically, Stella’s Incrementality Tool is about 1/3rd the cost of the other two main competitors (you know who you are). 

Compare the ROI of your campaigns using Stella to see how small investments in testing can lead to significant gains in understanding and optimizing your marketing strategies.

By leveraging Stella’s incrementality testing, you can address the most pressing pain points in your marketing strategy. This tool helps you scale and sustain growth, deliver personalized experiences, and maintain a strong omnichannel presence. Embrace the power of data-driven decision-making with Stella and watch your marketing efforts soar.