Marketing Campaign Measurement & Improved ROI
Tips to Improve Measurement of a Marketing Campaign
Marketing campaign measurement is crucial to your business.
Advertising for new customers, clients, or patients can be a costly affair. Let’s think. Where did you start? Probably, you copied what others are doing in your sector. Or, you have had some advice about an advertising medium. You have dug deep, took a deep breath and got your marketing campaign away.
Then responses start coming in. Some of these turn into sales. Maybe enough to repeat the exericse. Maybe not, in your view. But what should you do to decide?
Let’s imagine you are a retail business, or a charity. You are looking to target consumers. You have chosen to target them using direct mail. Good move so far.
TIP 1: Start with the right targets. Divide and conquer.
Sounds easy. So you want to target people in a vicinity. Do you target every household? Well no. Many people in retail believe they are targeting everyone, all households. But, the thing is you are almost certainly not. If you market products and services that are expensive, then narrow your target list to those are able to afford your offer. So, instead of mailing everyone, narrow your focus on wealthy people. This will increase the number of people over 50, as 80% of wealth in the UK resides with the over 50s.
The best start is to use a profile of your best customers. An audit. Which of your customers do you want more of? Imagine an excel sheet, or you database having a blue dot next to all the customers you’d like to clone. Filter your list by the blue dots and you have the ideal profile of who you want to attract.
Equally, if you place a red dot against all the customers who are costing you money, who you prefer not to serve, then that would create a second list of customers.
If you are marketing to consumers, then I advise you to get a SONAR profile of both your best customers and the customers you simply do not want. SONAR works by adding one of 80 codes to every postcode you have. No postcodes, no profile. But don’t gve up – there are ways to add postcodes and full addresses.
SONAR will profile you ideal customers by affluence and lifestage. Let’s assume the blue dots are mainly over 50 and wealthy. SONAR has already analysed every postcode in the UK, whether current (about 1.7m of them) or ever (about 2.2m). And every postcode has a SONAR code. That code describes the postcode (that’s roughly 17 households), by affluence and lifestage. It is very reliable.
The profile would initially provide you with information on the best SONAR codes to get more of the people with blue dots and less of the people with red dots within an targeted area.
So now you are not targeting everyone. You are starting out with a very clear view of who you want to attract and who you want to repel. It’s like you have started your marketing campaign measurement early. Plus, you’ve saved a lot of money and grief too.
OK, let’s get back to the direct mail responses coming in.
TIP 2: Compare Responders with Non-Responders
The next step in your marketing campaign measurement is comparing the people who are responders with those who are non-responders.
With SONAR, you can simply add a SONAR code to every responder’s postcode. This will help you calculate a response rate by responder and non-responder. Then look across the 80 codes to see which SONAR code had the highest response rate.
How this helps your marketing campaign measurement is (a) you learn WHO your most responsive customers are and (b) it enables you to refine your targeting. You can go back to the most responsive postcodes to identify future prospects,
This marketin campaign measurement does two things for your business:
- It maximises your rate of return.
- You learn about your customers and how best to communicate with them.
TIP 3: Attract and Repel Prospects Using Marketing Campaign Measurement
Using your marketing campaign measurement of response – at the top are people who have responded and at the bottom people who haven’t responded. The ones at the bottom are best avoided on the next mailing, because of the costs of communicating with them for such a low level of response or return
Train your next data selection by using the most responsive SONAR codes to identify more people who live in the most responsive postcodes.
Why not watch David Griffiths, the founder of SONAR, who discusses response analysis in the video below. If you want to profile your customer database with SONAR, please get in touch with Graham Arrowsmith.