Attribution & Measurement MIS 2011 http://www.pinpoint-corp.com - - PowerPoint PPT Presentation

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The Evolution of Response Attribution & Measurement

MIS 2011

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Agenda

• MPM & Response Attribution
• The Pinpoint Methodology
• Evolving Response Measurement in Campaign
• Case Study
• Wrap-Up / Q&A

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What is MPM?

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Marketing Performance Measurement & Management: The methodology used to align marketing activities to achieve business objectives. Key Components:

– Interaction History – Data Analytics – KPIs & Dashboards

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What is Marketing Response?

Marketing Response: One or more measurable events related to a marketing campaign that together define the desired behavior taken by a customer or prospect

No great marketing decisions have ever been made on qualitative data – John Scully – Former CEO, Apple Inc.

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Some Additional Points…

• Response is not a guaranteed indicator of

campaign performance

• Response is an effective way of measuring

channel, messaging & creative effectiveness

• Output vs. Outcome:

– Output – Easily accessed data that is based primarily

• n customer action (e.g. downloaded, clicked, sent-

back, etc.) – Outcome – Forward-looking customer performance metrics (e.g. customer retention, share of wallet, product adoption, etc.)

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Where do you stand?

“We totally have this figured out and I’m in the wrong track session.” “We’re tying responses to business objectives today, but it’s very inefficient.” “We’re tying responses to business objectives today, but we have no consistent process on how it’s done.” “We’re capturing responses today, but we have no method to tie it to business objectives.” “We’re not measuring responses today and don’t know where to start.”

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Common Approaches

Approach Pros Cons End-users create their own response flowcharts for each campaign

• High level of flexibility
• Tie the person that built the

campaign to the capture of response

• High potential for errors
• High levels of inconsistency

between campaigns Collect every action to allow for any type of analysis later

• Allows for a snapshot of the

customer at time of response

• Easy access to each action
• Requires duplication of data
• Important KPIs can get largely
• verlooked

Don’t collect responses, just monitor the shift in KPIs

• Simplicity
• High level of flexibility
• Less data available on

customer response behavior

• Rigorous design of experiment

structure Mail! Baby! Mail! (Carpet-Bombing)

• Shock & Awe
• Collateral Damage

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Recommended Improvements

Approach What to do End-users create their

• wn response flowcharts

for each campaign

• Automatic & centralized response capture mechanism

Collect every action to allow for any type of analysis later

• Identify necessary actions based on pre-specified measurement
• bjectives

Don’t collect responses, just monitor the shift in KPIs

• Identifies specific KPIs for each campaign before execution

Mail! Baby! Mail! (Carpet-Bombing)

• Utilize closed-loop marketing to optimize offer assignment

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The Pinpoint Methodology

Prepare

• Segmentation
• KPI Selection
• Response Window
• Response Attributes

Present

• Campaign Execution
• Contact Capture
• Response Capture

Probe

• BI Report
• Analytics
• Best Segments
• Success Criteria

Plan

• Initiatives
• KPI Definition
• Response
• Events
• Types
• Criteria
• Shared Toolbox
• Offer Templates
• Response Flowcharts
• BI Reports

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Identify Your Initiatives & KPIs

• Number of products / services
• Net change revenue / utilization
• Customer churn
• Net change revenue / utilization
• Customer profitability
• Write-off Potential
• Number of new customers
• New customer revenue
• Number of products /services

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Acquisition Share of Wallet Risk Management Retention

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Response Categories

High Confidence

Customer did not refer to your promotion code yet purchase the products/services

• ffered

Medium Confidence

Customers did not purchase the products

• ffered but did for other related products

Low Confidence

Customers purchased unrelated products during the response window

Direct

Clear connection back to a Campaign (key or promotion codes)

Indirect

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In the Beginning…

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Response Response Response Response History Campaign Campaign Campaign

Customized, Isolated Response Flowcharts Maintained by Marketers

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… And Then There was Light

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Response Response History Campaign Campaign Campaign

Single, Centralized Response Flowchart Maintained by Campaign Admins

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IT Math

(End users build response flowcharts + End users validate response flowcharts + End users manage execution ) x Total # active campaigns x Total # of offers per campaign IT Nightmare (IT-managed response flowchart + Response is driven by offer attributes + Automated / lights-out execution ) x 1 response flowchart IT Dream

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Case Study - Telecommunications

• 7 regions, split geographically
• 60+ Unica users
• 100+ campaigns active at any one time
• 3+ offers per campaign
• Approximately 20 various products which are
• ften bundled
• Centralized response flowchart executes daily
• Three pre-defined response types

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Problem Description

• The existing response attribution process suffered from

a number of shortcomings:

– Accuracy – 95% of issues in response history were user- related errors – Performance – Challenging to control system resource consumption from causing contention – Transparency – Very difficult for Campaign administrators to know what users had changed/edited – Efficiency – Errors and omissions in response criteria required major re-work – Complexity – End-users did not fully understand response flowchart logic

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Response Flowchart

Step 1: Identify your Contacts

• Identify those that were targeted by

your active campaigns

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Response Flowchart

Step 2: Identify your Previous Responders

• You do not want to collect responders that

you have already added to your Response History, be sure to exclude them early in the process.

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Response Flowchart

Step 3: Segment into Response Types

• Identify your new responders and split

the population into the appropriate response type flow

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Response Flowchart

Step 4: Assign your Responders

• Identify the responders that qualify for

each of your response types and add them to your Response History tracking table.

• Capture any response-time or response-

derived metrics into your Response History tracking table.

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The Response Process Box

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The input cell containing only your responding population for a response type The date on which the response took place. (Can be static, variable,

• r data-driven)

The name of the response type that this population represents

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The Response Process Box

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The key, code, or parameter that you would like to use to link your response to a target. Try to be as specific as possible to limit the likelihood of mismatching to a minimum

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The Response Process Box

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Map any fields that you would like to track at the time of response to the Response History table here These columns need to be mapped into the Response History System Mapping in advance

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Lessons Learned

• If you have customers receiving multiple offers

at a time, you may want to consider including the offer or treatment in the audience.

• Making it easy to identify response records

(i.e. through simple database views) can make a big difference in response flowchart complexity

• The Extract process is your friend, don’t be

afraid to use it… responsibly.

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Summary – Key Takeaways

• Having a disciplined approach to response

measurement makes your campaign performance measurement transparent and defensible.

• Flexibility is directly correlated to complexity.

Lean towards simplicity and evolve over time.

• End user acceptance of the new process was

very high. (Higher fidelity response with less effort.)

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Q&A

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Appendix

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Example KPIs

– Contacts

• Targeted Population
• Mailed Population

– Responders

• Number of Purchases per Responder
• Response Rate
• Total Response Revenue
• Cumulative Response Revenue
• Revenue per Targeted Customer
• Revenue per Responding Customer

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Example KPIs

– Cost

• Cumulative Campaign Cost
• Cost per Targeted Customer
• Cost per Responding Customer

– Campaign Success

• Return on Investment (ROI)
• Control Group Response Rate
• Control Group Cumulative Revenue

– Retention

• 30/60/90/180/360-Day Churn
• Cumulative Churn Rate

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