tag:blogger.com,1999:blog-32202893.post4935699430312458468..comments2023-10-18T08:32:17.510-07:00Comments on Kevin Hillstrom: MineThatData: Contact Strategy ProfitabilityUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-32202893.post-18203634881949674012007-03-20T05:53:00.000-07:002007-03-20T05:53:00.000-07:00Simon, you hit upon an important point in evaluati...Simon, you hit upon an important point in evaluating Group 4!!<BR/><BR/>So often, we are eager to allocate business back to a marketing activity.<BR/><BR/>Frequently, those sales simply "happened". No marketing activity caused them.<BR/><BR/>The important thing to do is to relentlessly test marketing vehicles. Some marketers will withhold marketing from customers for six-months at a time, to eliminate the impact of marketing "spilling over" into the test period. When you do this, you still see organic sales happening online. Those sales cannot be matched-back to any marketing activity, when designing six-month long tests.<BR/><BR/>When viewed in that light, the profitability of marketing is not as good as originally thought to be.<BR/><BR/>Way to identify a key issue, Simon!!MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-72667233899761612852007-03-20T04:42:00.000-07:002007-03-20T04:42:00.000-07:00At first pass, I like option 1. The top line is t...At first pass, I like option 1. The top line is tied for best, and while profit is slightly lower, I wouldn't want to abandon the email program. Email is an important part of the marketing mix. A contact strategy test with emails is difficult to measure, as our email messages vary widely. (what if the emails were poor performers, or not hard sells?)<BR/><BR/>I'm most intrigued with the Group 2's 'Phone Demand.' If the catalogue is unsuccessful at driving web demand - maybe we should consider having the analysts develop a phone propensity model and send these folks the catalogue. This speaks to catalogue strategy... 1.) Send the best customers a catalogue or 2.) Send it to customers who display the biggest incremental lift.<BR/><BR/>One more thought - what to do with Group 4? The $4.19, to some degree, is an accumulation of prior marketing. Should these dollars really float outside of any marketing vehicle's "claim" and therefore not be budgeted against? We consistenly see > 30% orders come in without a marketing source, and generally we've allocated this revenue to the catalogue through a match-back process.Anonymousnoreply@blogger.com