Too often, I sit in meetings where business leaders ask very simple questions of the marketing team.
And too often, the marketing team cannot answer simple questions.
Here's our business from yesterday. Let's pretend that the Executive Team is not "giving the love" to the email marketing team. Yup, happens all the time.
What we don't ever get to see is what happens when email marketing is stopped.
I zero out the email marketing line, for each of the next five years, in my Attribution Simulation. Here's the outcome, and it isn't pretty, folks.
Oh. My. Goodness.
The Attribution Simulation shows us that email costs us +/- ten million dollars in the first year.
However, by not offering email marketing, we do not reactivate or activate as many customers. We cut back on new customers. The result is a long-term death spiral - the business is down to $58 million in year five, instead of $81 million.
In other words, email marketing has a $10 million dollar short-term impact, and a compounding impact over the next five years of up to $13 million additional volume.
And take a look at profitability - it's virtually gone from this business, isn't it?
Now, if you are the email marketing Director, wouldn't you like to have this Attribution Simulation in your back pocket? Heck, over time, you're responsible for almost all of the profit generated by this business.
This is the power of the Attribution Simulation.
Contact me (email@example.com) for your own Attribution Simulation.
It's common for folks to measure cost per new customer. Total Marketing Cost = $10,000. Total New Customers = 130. Cost per New C...
RFM is great for targeting one catalog to one customer. However, RFM is tough to manage in a multichannel environment. This becomes clear ...
If you don't like geeky math, please skip this post, because I am about to show you how the sausage is made! I have eight variables in...
Remember our e-commerce customer from yesterday ... 50% organic, 50% catalog driven? We mail a catalog, and the $3.00 matchback outcome is ...