For traditional direct marketers, there is no single metric that is more important to calculate than the organic percentage.
Simply put, the organic percentage is the percentage of demand that is generated independent of marketing activities. For many catalogers, the percentage is calculated as the percentage of demand that is independent of catalog marketing.
We care about this, of course, because our matchback analytics frequently attribute orders to catalog and e-mail marketing activities, orders that would have happened regardless of any catalog or e-mail marketing.
Catalog marketers are growing comfortable with this percentage, because of the actionable ways it gets put into use. Organic percentages of maybe 10% suggest that your catalog is the reason your business exists!
Organic percentages of maybe 35% to 40% suggest a considerable amount of over-mailing. These businesses are probably attributing too much business to catalogs and direct marketing in their matchback algorithms.
Organic percentages of 80% or more suggest a powerful brand that is complemented by direct marketing, not driven by direct marketing.
For my catalog readers out there, work closely with your co-op or other matchback provider, calculating this important percentage. If that number creeps up over 30%, it is time for serious catalog contact strategy testing. For my online marketing readers out there, this is another good place to partner with a Coremetrics, Omniture, or Unica, folks who can help you get to the bottom of this important metric.
Helping CEOs Understand How Customers Interact With Advertising, Products, Brands, and Channels
March 20, 2009
Mega-Metrics: The Organic Percentage
Subscribe to: Post Comments (Atom)
As usual, my summer schedule will dial back just a bit ... maybe three posts per week instead of five, sometimes four, sometimes more. And y...
It is time to find a few smart individuals in the world of e-mail analytics and data mining! And honestly, what follows is a dataset that y...
Sometimes you think "people already know this stuff". Sometimes you realize that Google Analytics give smart analysts almost no op...
If you want to understand why clients don't trust vendors and trade journalists, read this little peach from a week ago: Direct Mail is ...
Post a Comment
Note: Only a member of this blog may post a comment.