Making results, and measuring them too!
Posted by marketingfrontier on November 17, 2006
Last week, I wrote about how Janet determined her target segments, and then identified the product gap or frequency gap for each segment. Then I wrote, “she marketing to them,” and left it at that. For any experienced marketer, it is never just “she marketed to them.” Rather, the next critical step in growing a customer base is determining the right mix of communications and incentive, and a motivating creative delivery to convey that information. Add in the need for multi-channel communications, and we have a heavy load for any marketing team to deal with.
But dealing with that load, and then measuring the results, is vital to successful data-driven marketing.
In order to manage the workload and prioritize the actions for her team, Janet returns to her spreadsheet. She examines the product or frequency gap, and determines the revenue and margin impact of filling that gap — e.g. gaining all the share of wallet. She then conservatizes her results by factoring down the share of wallet she will gain and the percent of customers that will respond. When she is done, she has a model for anticipated results that clearly prioritizes the targets and products for the marketing team. “Start at the top and work your way down.”
Before a program can be implemented however, Janet makes very sure that results can be tracked. Each different group is marked in a central database for their program, date, channel and offer, so that comparison reports can be easily run. Control groups are developed and selected, and carefully held out of the appropriate program, or any other program that could conflict with a clean read.
Janet then takes a deep breath, and “pushes the button,” for the programs to be implemented. As results come back (and for email programs, results begin to emerge in 72 hours), she is carefully measuring those results vs. forecast, distilling the learning and aggressively communicating across the company.
Share of Wallet drives it all — targeting, financial forecasts, program development (offer, channel, creative) and measurement. The key to success is not to be too precise. I know that sounds odd for a data-driven marketer to say, but benchmarking share of wallet off Best Customer behavior can achieve 90% of the value of an in-depth behavioral research study, at 10% of the cost, for this specific purpose. As data-driven marketing grows within an organization, the most precious commodity becomes TIME, not money. The successful allocation of time is the difference between success and failure.