How Effective Was the Ttc Test Market

How effective was the TTC test market

First, Schwab’s market research compared consumer attitude toward Schwab and its competitors before and after the advertising test period in the test and control market. The consumers rated Schwab more favorably in the test markets as the campaign progressed. To be specific, consideration (to open account), unaided brand awareness, good value for money and other indexes grown rapidly during the period of campaign

Second, tracking the nationwide AD recaller versus AD nonrecallers, The consumers recalled the TTC campaign unaided were more wish to choose the Schwab compared with nonrecaller (+6 points). Besides, viewed Schwab as a unique alternative increased 5 points during the campaign period and agreed that Schwab as a company was gaining ground increased 7 points. The consideration to open new accounts was majorly observed in Denver; popularity and value for money perception became more positive in Chicago; Brand awareness, correct offers and brand momentum was gained in Houston.

Measure the customer’s attrition is a way to know whether TTC campaign stopped the marginal customers moved to Schwab’s competitors. 5% reduction in attrition in the six months between April and September 2005 indicated the effectiveness of the TTC campaign.

The slogan ‘talk to chuck’ potentially wished the viewer found the Chuck to consult or called to the call-center. Whether the customer contact during the campaign period increased or not also would prove the effectiveness of TTC campaign. The index from test market result after nine months showed that the new accounts opened rate and net new asset bought rate From New households all rise up potentially proved the effectiveness of the TTC campaign after the nine months.

Besides that, Schwab promised in TTC that reduced the commission for trade also be verified by their financial report between 2004 and 2005. The trading revenue shrinked from 1025 to 779 whereas the increase of asset based and other revenue from the achievement of campaign compensate the total revenue.

Would you support Saeger’s TTC budget request for 2006?

Yes.

From the budget aspect, Schwab’s net new assets increased by$6 billion (10%) and the net new assets for the third quarter were80% higher than those for the third quarter of 2004. The abundant net profit of the firm brought the courage to mangers in Schwab.