database marketing fundamentals targeting, tracking, evaluating response july 22, 2009 joanne...
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Database Marketing Fundamentals
Targeting, Tracking, Evaluating Response
July 22, 2009
Joanne Steller
TRG Vice President, Strategic Communications
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Direct & Database Marketing
Direct Marketing • Messages sent direct into homes
• Drive purchases through “call-to-action”
• E.g.: Direct Mail, Telemarketing, e-mail
Database Marketing• Deploy database for tailored communications
• Analysis-basis for targeting likely prospects
• Data Warehouse stores information
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Targeting: The Who Rules
Message• Language• Offer
Contact Channel• Direct
o Papero Electronic
• Mass media
Carrier• Personalized
communication• Catalog/brochure• Paper/electronic/both?
Scope of Contact• Quantity• Frequency• Timing
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Geographic Selection
Where do patrons live?• By zip and SCF
• Volume and % of Population
• By segment --different audiences /same regions?
Target opportunity areas• Most likely to respond
• Eliminate waste – why mail Alaska?
12.0 Mi
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Demographic Targeting
PRIZM - Urban Uptown
Young Digerati Bohemian MixMoney & Brains
Who are your patrons?
Do your offers appeal
to certain life-stages?
Use demographics to
filter or qualify your
selection
Targeting Past Behavior
Buyer type segmentation• Renewal
• Reactivation
Response analysis• Key coding (manual)
• Response reporting (electronic)
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Predictive Model Re-segmentation Example
Segment: Long LapsedN=25,000Response=25Response %=0.1%Avg. Order: $350Total $: $8,750Cost/Piece: $0.40Expense: $10,000Cost-of-Sale: $1.14
Segment: Enhanced Long LapsedN=10,000Response=20Response %=0.2%Avg. Order: $350 Total $: 7,000Cost/Piece: $0.40Expense: $4,000Cost-of-Sale: $0.57
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Enhanced Targeting: Test
Mitigates risk
• Never 100% right/wrong
Refines approach
• A / B offers
• Measure both
Higher short-term cost-of
sale
• More contacts, versions
• Lower per patron investments likely
Better long-term response
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Evaluating Response forImproved Responsiveness
Compare:• Who/how many contacted• Who responded / how much achieved
Requires advance tracking plan• Key codes before printing• Target list order before distribution
Relies on assistance• Collecting, tabulating key codes• System or outsourced response analysis
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Key coding: Do response analysis yourself
Assign code
Ask for, record code at point of order
• Ticket office
• Phone
• Online
Tabulate results
Evaluate results• Number contacted vs.
results achieved
Good basic technique• Can be done in-house
• Little/no $$ expense
• Required time investment
Provides directional analysis• Sound, just not exact
• Gaps: actual vs. reported results
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Response Reporting: Deploy systems, services for analysis
After campaign• Match-back, back test
Electronic examination• HH contacted • HH who bought
Detailed measurement • Segmentation• Units of sale• Sales revenue
Service or system provided
Deep analysis possible• Degree of response• By segment / portion• ROI – spend effectively
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Response Rate Tracking
Segment Mailout# of
Responses Response RateResponse Rate
Index Seat Qty Total $ Average
Sales $ Per Name Total Expense COS
CSO 04-05 FULL SUBS 672 550 81.85% 36.91 1,068 229,673$ 418$ 341.77$ 1,122$ 0%CSO 04-05 CYO SUBS 210 133 63.33% 28.56 848 38,522$ 290$ 183.44$ 351$ 1%
CSO 04-05 STBS 269 41 15.24% 6.87 216 11,915$ 291$ 44.29$ 449$ 4%CSO 03-04 CYO SUBS 138 17 12.32% 5.56 97 4,289$ 252$ 31.08$ 230$ 5%CSO 03-04 STBS 693 38 5.48% 2.47 194 11,062$ 291$ 15.96$ 1,157$ 10%CSO 02-03 CYO SUBS 48 2 4.17% 1.88 2 588$ 294$ 12.25$ 80$ 14%CSO 03-04 FULL SUBS 129 5 3.88% 1.75 7 1,346$ 269$ 10.43$ 215$ 16%CSO 04-05 TCHAIKOVSKY FEST STB'S 384 14 3.65% 1.64 61 4,673$ 334$ 12.17$ 641$ 14%CSO 02-03 FULL SUBS 113 3 2.65% 1.20 15 772$ 257$ 6.83$ 189$ 24%03-04 OPERA SUBS 83 2 2.41% 1.09 16 903$ 452$ 10.88$ 139$ 15%CSO 04-05 MESSIAH STBS 362 8 2.21% 1.00 38 2,984$ 373$ 8.24$ 605$ 20%CSO 03-04 YO YO MA STBS 227 5 2.20% 0.99 12 1,408$ 282$ 6.20$ 379$ 27%CSO 02-03 STBS 741 16 2.16% 0.97 78 4,159$ 260$ 5.61$ 1,237$ 30%04-05 REP THEATRE SUBS 60 1 1.67% 0.75 8 210$ 210$ 3.50$ 100$ 48%04-05 OPERA STBS 724 12 1.66% 0.75 34 3,525$ 294$ 4.87$ 1,209$ 34%CSO 03-04 AMAHL & NIGHT VISITORS STBS 210 3 1.43% 0.64 11 708$ 236$ 3.37$ 351$ 50%04-05 OPERA SUBS 144 2 1.39% 0.63 5 1,498$ 749$ 10.40$ 240$ 16%CSO 03-04 JUBILENT SYKES STBS 186 2 1.08% 0.48 20 637$ 319$ 3.43$ 311$ 49%04-05 BROADWAY SUBS 528 5 0.95% 0.43 28 1,367$ 273$ 2.59$ 882$ 65%04 DAVE BRUEBECK STB'S 330 3 0.91% 0.41 17 703$ 234$ 2.13$ 551$ 78%04-05 BALLET SUBS 119 1 0.84% 0.38 8 312$ 312$ 2.62$ 199$ 64%04-05, 03-04 BACH FESTIVAL STB'S 1,834 13 0.71% 0.32 24 3,654$ 281$ 1.99$ 3,063$ 84%03-04 OPERA STBS 1,184 7 0.59% 0.27 19 2,558$ 365$ 2.16$ 1,977$ 77%04-05 BROADWAY STBS - FULL MONTY 456 2 0.44% 0.20 6 344$ 172$ 0.75$ 762$ 221%CSO 02-03 CHRISTMAS CANTATA STBS 235 1 0.43% 0.19 2 392$ 392$ 1.67$ 392$ 100%04-05 BALLET STBS 1,062 4 0.38% 0.17 10 1,716$ 429$ 1.62$ 1,774$ 103%04 WYNTON MARSALIS STB'S 286 1 0.35% 0.16 2 212$ 212$ 0.74$ 478$ 225%04 HARRY CONNICK STB'S 447 1 0.22% 0.10 8 120$ 120$ 0.27$ 746$ 622%CSO 02-03 PINK MARTINI STBS 572 1 0.17% 0.08 2 392$ 392$ 0.69$ 955$ 244%04-05 BALLET - NUTCRACKER STBS 1,295 2 0.15% 0.07 16 582$ 291$ 0.45$ 2,163$ 372%04-05 BROADWAY STBS - PRODUCERS 2,456 3 0.12% 0.06 5 998$ 333$ 0.41$ 4,102$ 411%04-05 BROADWAY STBS - CONTACT 45 - 0 -$ -$ -$ 75$ 04-05 BROADWAY STBS - SMOKEY JOES CAF╔ 316 - 0 -$ -$ -$ 528$ 04-05 OFAM STBS - MY FAIR LADY 585 - 0 -$ -$ -$ 977$ 04-05 REP THEATRE STBS 728 - 0 -$ -$ -$ 1,216$
Over Producers
Non-Producers
Under Producers