July 28, 2019

What Are The Simulations Showing?

This table illustrates the results of an Optimal Mailing Strategy Simulation (OMSS).

We enter customer metrics in the upper left portion of the simulation, and the spreadsheet calculates the optimal strategy at each page count.

The results are summarized in the upper right portion of the table. Go ahead, click on the table and take a peek, I'll wait for you, ok?

Welcome back!

This simulation demonstrates what happens when you figure out the optimal strategy for a customer that is responsive to catalogs (organic percentage = 20%). Look at the summary portion of the table. The customer could receive 40 contacts at 32 pages each, or the customer could receive 15 contacts at 160 pages each. Neither solution is being employed by this brand (12 contacts at 80 pages each). The best customer can be mailed MORE often. Yes, MORE often. Either more pages, or more contacts.

And in this case, more pages results in more profit because ad costs are steep at 32 pages and are efficient at higher page counts. Your mileage will vary ... CONSIDERABLY!!!!!

But the result of the simulation is MORE ... across the board.

This is the story that simulations repeatedly demonstrate across my project work.

Ask your favorite vendor to produce Optimal Mailing Strategy Simulations (OMSS) for you. They're smart people, and they can easily assemble the simulations at your request. Or ask me and I'll do it ... either way, you win, and if you ask your favorite vendor to do it they win. Or build it in-house ... challenge your analyst to do something fun!!!

Regardless, you need to produce Optimal Mailing Strategy Simulations (OMSS).

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Pay 'em!!!

Two weeks ago I shared this image, created via one of my "bifurcation" projects. The image was part of a series outlining h...