Date post: | 17-Jul-2015 |
Category: |
Data & Analytics |
Upload: | relevate |
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Database Marketing, Part 2 | Roadmap to Success
Presented By
Andy Pappas VP, Database Marketing
& Analytics – Relevate
Tom Guernon Director of Sales – Relevate
Database Marketing, Part 2 | Roadmap to Success
What We Will Cover
Recap of Part 1
Data Enhancement
Smart Profiling
Predictive Analytics
Campaign Attribution and
Reporting
Database Marketing, Part 2 | Roadmap to Success
Part 1 Recap
Understand the Process
Data Organization
Data Hygiene &
Enhancement
Reporting
Campaign Strategy
Choosing a Solution
Watch online at www.relevategroup.com/learn
Database Marketing, Part 2 | Roadmap to Success
What is Database Marketing?
Database
A collection of data and information about
customers and/or prospects that affects what and
how a marketer will sell to them.
Database Marketing
A customer-based, information intensive, long-
term methodology that uses the Database as the
basis of all on-going marketing efforts.
Database Marketing, Part 2 | Roadmap to Success
Database Marketing Value Proposition
Breadth of functionality Integrated descriptive & predictive analytics,
multi-channel campaign management, and
reporting.
Ease of use Expands user audience, reduces training
requirements & makes staff productive sooner.
Accessibility Delivers insightful and actionable customer data
to the fingertips of entire staff…from anywhere.
Scalability and
Performance
Architected to perform optimally with large
databases, frequent updates and heavy usage.
Database Marketing, Part 2 | Roadmap to Success
Part 2 Roadmap to Success
Data Enhancement:
External Data and
Hygiene Best Practices
Smart Profiling
Predictive Analytics
Campaign Attribution &
Reporting
Database Marketing, Part 2 | Roadmap to Success
Data Enhancement
Is session 1, we indicated that a Database was a collection of information about
your customers and/or prospects, and this information will drive how we interact
with them. What types of data are available?
Internally generated data
• Self-reported data by your customers
• Buying/Transaction history
RFM
External data options
• Demographics
• Lifestyle Characteristics
Hobbies/Interests
General purchase behavior
(outside your company)
• Geo based elements
Summarized Credit
Summarized Auto
Database Marketing, Part 2 | Roadmap to Success
Smart Profiling
What is a Smart Profile?
• A smart profile provides a “descriptive” view of your customer base by
comparing a sample of your client file to national (or regional) averages
using common demographic and lifestyle variables.
• It is a 1st step in trying to understand what a customer base looks like.
• Also may be a preliminary indicator how successful modeling efforts may be.
Database Marketing, Part 2 | Roadmap to Success
Predictive Analytics
Why Should I Use Models?
• Every marketer is trying to maximize customer performance or maximize the
acquisition of new customers. More Response and more buying activity.
• The best way to do this is by using the past performance to predict future
behavior.
• A model will take the interaction of the data elements that are available to us
and allow us to rank from high to low those people most likely to take the
desired action. This will be a propensity for the individuals to take the action.
There are no absolutes just probabilities.
Database Marketing, Part 2 | Roadmap to Success
Predictive Analytics
Models can be created for current or past customers and also for
prospects.
Types of model applications:
Customer models
• Retention
• Reactivation
• Cross-Sell
• Lifetime Value
Acquisition models
• Increase response rates in generating new customers
Database Marketing, Part 2 | Roadmap to Success
Predictive Analytics
Acquisition Models
A great many of our clients are interested in generating New Customers. As such it is common for us to build Acquisition Models. When creating such a model we typically take 1 of 2 approaches:
Response Model
• Marketer provides solicitations and the corresponding responders
• This gives us those who took the action (response) vs. those that did not
Good customer match Model
• Marketer provides us with a sample of their best customers (have taken the buying action)
• We still need a sample of those that did not
Extracted from our national consumer databases Note: The same methodologies are used in Customer based models.
Database Marketing, Part 2 | Roadmap to Success
Total Sample Scored by the New Responsive Model Data Set
Database Marketing, Part 2 | Roadmap to Success
Predictive Analytics
Response Performance Indicator
• A quick, easy and cost-efficient generic model to effectively predict front-end
response and back-end performance. The results provide actionable
information on who is likely to respond, and who is likely to pay.
• There are 10 segments that allow the marketer go up or down the scale
based on objectives and type of client sought.
Segment 1 typically has strong front end response rates but more likely to
have issues on the back end (i.e. bad debt, cancellation, etc.)
• Appropriate for Debt Consolidation type offers
Segment 10 typically has lower front end response rates but are much
less likely to have any issues later on
• Appropriate for high ticket or high end offers
Database Marketing, Part 2 | Roadmap to Success
Attribution & Reporting
• Address Hygiene
• Merge/purge
• Determine available universe for each
desired segment
• Determine how Global or Specific
suppressions
or filters may change the segment quantities
• Determine estimated ROI per segment by
using historical/expected response rates and
average sales figures
• Determine the actual Response
Rates, $ Sales and ROI by Segment
• Compare to Projections
• Compare to Historical Results
• Year to Year comparisons
• Product Category Comparisons
• Customer Segment comparisons
Production reports Campaign Creation Reports
Campaign Performance Reports Database Performance Reports
Database Marketing, Part 2 | Roadmap to Success
Attribution & Reporting
As it relates to On-line campaigns
you will be looking to measure
performance for:
• Opens
• Clicks
• Bounces
• Complaints
• Unsubscribes
Typically with On-line campaigns you
will also be measuring results by:
• Creative versions
• Subject lines
• Day of deployment
• Time of deployment
Database Marketing, Part 2 | Roadmap to Success
Name Message
subject Send date Sent (nb) Sent (%)
Hard
bounces
Hard
bounces (%)
Soft
bounces SB (%) Delivered Del (%)
Creative 1 Subject 1 1/13/2015 7493 100.00% 2 0.03% 372 4.96% 7119 95.01%
Creative 2 Subject 1 1/13/2015 7495 100.00% 6 0.08% 359 4.79% 7130 95.13%
Creative 1 Subject 2 1/13/2015 7495 100.00% 3 0.04% 370 4.94% 7122 95.02%
Creative 2 Subject 2 1/13/2015 7495 100.00% 4 0.05% 333 4.44% 7158 95.50%
29978 100.00% 15 0.05% 1434 4.78% 28529 95.17%
Name Message
subject Send date Sent (nb) Sent (%) Total opens Opens (nb)
Opened
(%)
Total
clicks
Click
throughs (nb) Click (%)
Click to
Open (%)
Creative 1 Subject 1 1/13/2015 7493 100.00% 1762 1370 19.24% 130 88 1.24% 6.42%
Creative 2 Subject 1 1/13/2015 7495 100.00% 1765 1430 20.06% 65 48 0.67% 3.36%
Creative 1 Subject 2 1/13/2015 7495 100.00% 2075 1586 22.27% 121 94 1.32% 5.93%
Creative 2 Subject 2 1/13/2015 7495 100.00% 1971 1558 21.77% 89 63 0.88% 4.04%
29978 100.00% 7573 5944 20.83% 405 293 1.03% 4.93%
Name Message
subject Send date Sent (nb) Sent (%)
Unsubscribed
(nb)
Unsubscribed
(%)
Complaints
(nb)
Complaints
(%)
Creative 1 Subject 1 1/13/2015 7493 100.00% 51 0.72% 2 0.03%
Creative 2 Subject 1 1/13/2015 7495 100.00% 57 0.80% 6 0.08%
Creative 1 Subject 2 1/13/2015 7495 100.00% 62 0.87% 3 0.04%
Creative 2 Subject 2 1/13/2015 7495 100.00% 62 0.87% 6 0.08%
29978 100.00% 232 0.81% 17 0.06%
Database Marketing, Part 2 | Roadmap to Success
Attribution & Reporting
Attribution: Off-Line
In the DM space there are usually business rules in place that drive what the
Response Match back processes will be. These business rules are combined with
our internal matching algorithms to generate the campaign response universe.
• Individuals or Households that match
• Pass-along matches
The person or household responding does not match the solicited
record but the promotion code does
Marketing usually will add these metrics to campaign performance
Database Marketing, Part 2 | Roadmap to Success
Attribution & Reporting
Reporting
Once the match back process completes the results can be analyzed by various elements:
• Channel
• Offer/Package
• Price points
• Customer Segment (i.e. RFM)
• List Source (if for acquisition)
• Model Decile
• Appended Demographics
• Etc.
The knowledge gained can be used to fine tune future campaign efforts
• Once again we use historical information to predict likely future behavior
Database Marketing, Part 2 | Roadmap to Success
Attribution & Reporting
PACKAGE CODE QTY TOTAL RESP TOT RESP % NET REV GROSS MRGN MKTG COST LIST COST TOTAL COST CONTRIB. CONTR/RESP
A 46,368 119 0.26% $536,867 $147,102 $54,150 $464 $54,614 $92,488 $777
B 749,292 468 0.06% $1,980,864 $542,757 $323,636 $43,964 $367,600 $175,157 $374
C 199,117 195 0.10% $890,520 $244,002 $71,864 $3,356 $75,220 $168,782 $866
D 67,459 107 0.16% $414,044 $113,448 $40,579 $675 $41,254 $72,194 $675
E 338,403 240 0.07% $1,006,320 $275,732 $140,894 $5,922 $146,816 $128,916 $537
TOTALS 1,400,639 1,129 0.08% $4,828,615 $1,323,040 $631,123 $54,380 $685,503 $637,537 $565
PASSALONG TOTAL 52 $219,648 $59,305 $59,305
OVERALL TOTALS 1,400,639 1,181 0.08% $5,048,263 $1,382,345 $631,123 $54,380 $685,503 $696,842 $590
Database Marketing, Part 2 | Roadmap to Success
Solicitation Matches Total
Mail Qty. 5,153,745
Customers 5,664
Customer Resp % 0.11%
Customer Returns 951
Net Customers 4,713
Net Customers % 0.09%
Gross Revenue $18,798,832
Gross Revenue - XL $146,259
Gr. Revenue Less XL $18,652,573
Gross Margin $5,110,805
Mktg. Cost $1,967,339
List Cost $177,993
Total Cost $2,145,332
Contribution $2,965,473
Contr/ Net Resp $629.21
Total Matches Total
Mail Qty. 5,153,745
Resp 6,118
Resp % 0.12%
Resp - XL 1,071
Net Resp 5,047
Net Resp % 0.10%
Gross Revenue $20,002,632
Gross Revenue - XL $156,343
Gr. Revenue Less XL $19,846,289
Gross Margin $5,437,883
Mktg. Cost $1,967,339
List Cost $177,993
Total Cost $2,145,332
Contribution $3,292,551
Contr/ Net Resp $652.38
Pass-along Promo Code Total
Customers 378
Customer Returns 93
Net Customers 285
Gross Revenue $979,406
Gross Revenue - XL $6,157
Gr. Revenue Less XL $973,249
Gross Margin $266,670
Pass-along Project Code Total
Customers 76
Customer Returns 27
Net Customers 49
Gross Revenue $224,394
Gross Revenue - XL $3,927
Gr. Revenue Less XL $220,467
Gross Margin $60,408
Database Marketing, Part 2 | Roadmap to Success
What We Covered
Recap of Part 1
Data Enhancement
Smart Profiling
Predictive Analytics
Campaign Attribution and
Reporting
Database Marketing, Part 2 | Roadmap to Success
Upcoming Database Marketing Webinars
Part 3:
Campaign Management
and Automation
Database Marketing, Part 2 | Roadmap to Success
THANK YOU AND
PLEASE STAY IN TOUCH!
Visit us online at www.relevategroup.com
Email us at [email protected]
Call us at 800-523-7346