Hilite Ltd has ceased trading

It is with deep sadness that we have to inform you that Hilite Ltd ceased trading on May 31st 2018.

We would like to thank all our clients, suppliers and staff for 32 great years but regret that the new GDPR regulations have made it impossible to continue as we would have liked.

Should anyone have any questions we can be emailed on mikehilite@mail.com We only have a skeleton staff but will aim to get back to you as soon as we can.

Thanks again,
Mike Chantry

 

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The True Value of Constant Testing

The True Value of Constant Testing

Despite everyone in direct marketing playing lip service to the value of testing, I am often amazed at how little people are actually testing.

Sure it costs some money but if you have a hit rate of 1 in 3 why do 3 tests a year when you could do 12 or more?

Take a look at two companies who find success in 1 in 3 tests that give them a 5% lift in turnover every time they hit a winner.
 
Both start with:

Turnover - £1,000,000
Cost of Sales – £200,000
Marketing Cost - £200,000
Overhead - £400,000
Net Profit - £200,000
 
Company A 3 tests a year would look like this after 10 years (ignoring inflation)

Turnover - £1,628,000
Cost of Sales – £326,000
Marketing Cost - £200,000
Overhead - £612,000
Net Profit - £490,000
 
Company B 12 tests a year would look like this after 10 years (ignoring inflation)
Turnover - £6,192,000
Cost of Sales – £1,238,000
Marketing Cost - £200,000
Overhead - £2,477,000
Net Profit - £2,277,000
 
A very simple example, I know, but just by increasing the tests by a factor of 4 the profits are quadrupled.

I hope this will encourage you to test more. And remember it’s not always new client acquisition you need to be testing. It’s also client retention and up-sell strategies too. Add to that product/service tweaks, cost reduction, price testing and customer service changes and you should have plenty to test.

Still stuck on what to do? We’re always keen to help, call the office and book a call with me. I’ll call you back and give you some more ideas.

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