Archive for the ‘For Direct Marketers’ Category
The campaign wastage you didn’t have to have
Monday, July 6th, 2009
Every day direct marketing is literally chasing customers out the door – OK, so not literally (it’s not like the envelopes have turned wild) but the effect is the same.
The fact is churn can be triggered by your active marketing campaign. Effectively your retention campaign can be having the opposite effect on some customers – they would have remained customers if you had left them alone. We rather descriptively call these customers ’sleeping dogs’ (from the saying let sleeping dogs lie) or – perhaps more politically correct – ‘do-not-disturbs’.
It’s a real phenomenon.
A mobile phone operator ran a retention mailing that increased churn from nine percent to ten percent. Imagine walking into your boss’ office to announce the expensive direct marketing campaign not only cost the company the campaign budget, it also drove recurring revenue out of the business.
As it turns out, just 30 percent of those targeted were ’savable’. Using Uplift Modelling this ’savable’ sub-segment was identifed for another retention campaign but with very different results – this time positive responses reduced churn to 7.8 percent across the retention segment.
The 1.2 percent churn saving was worth more that US$8 million per year.
The numbers tell a very convincing story – now just extrapolate this scenario onto the last direct marketing campaign you ran. What happened with your sleeping dogs?
Posted in For Direct Marketers | 1 Comment »
Welcome to Campaign Checkup
Sunday, July 5th, 2009
Welcome to the free online tool that has the potential to revolutionise your marketing campaigns.
There is a wonderful moment of ‘dawning’ whenever we explain what Uplift Modeling (the engine behind Campaign Checkup) can deliver. It’s that ‘wow’ look which we hope to replicate many times over using this online tool.
A small word of warning though, after your ‘wow’ moment you will quickly morph into asking questions like ‘but how?’ and ‘would it work for me?’ Rather than have you perplexed, we suggest that you gather your last campaign’s data (including from your control group and your per unit financial data) and complete a checkup on your campaign.
That way you can see exactly the potential budget savings and ROMI for your campaign based on your data. The form for the checkup is here.
Please feel free to browse the site, read the documents, listen to the webinars and comment on the blogs.
Posted in For Analytics and Statistics Professionals, For Direct Marketers, For Marketers & Students | No Comments »