Many companies measure the impact of their campaigns one by one. Campaigns are measured, assessed for ROI, and future decisions are based on past experience/results. This may be partially due to how campaigns are managed – digital and web teams might be separate from more traditional direct mail and advertising teams, or marketing teams might be distinct by product segment. In either case, these silos can prevent you from having a more holistic and customer-centric understanding of your marketing activity and results.
Taking a look at your activity from a customer-centric viewpoint will bring new insights that might be counter-intuitive to individual campaign findings. You might find campaigns that conflict with one another, or that certain customer segments are being touched too frequently while others are being ignored.
In order to conduct a customer-centric analysis, you need to gather data across campaigns and marketing teams to build a single contact-level dataset that includes everyone you have touched over a designated time period (can be one or several years).
- For the B2B segment (Business-to-Business), a contact might be defined as a company location or an account (a group of locations under a higher level company).
- Aggregate the following types of data: touch flag, number of touches, response flag, number of responses, number of distinct campaigns, channel flags, number of distinct channels, and revenues.
- Attach firmographic information such as industry, number of employees, company sales, and geography. Some of these attributes might be banded to faciliate analysis (e.g., creation of 3 to 5 employee size groups).
- Attach customer type information based on your analysis’s start and end times. You want to know who was a customer, or even a customer within a specific product segment, both at the beginning and end of the time period you are analyzing.
You are now ready to analyze the dataset to understand how your marketing activity is performing from a customer-centric viewpoint. A few questions to get you started:
- Whom are you touching? What is the balance between existing and new customers?
- Are you touching the same contacts with messages from more than one product segment, or via more than one channel? Are these messages complementary, confusing, or even contradictory?
- How are touched contacts different from non-touched contacts? Your first response might be that touched contacts perform better, but are you looking at similar groups? We often find that a much higher percentage of customers are touched, and they perform better due to the existing customer relationship status versus having been touched.
- How often are you touching your contacts? Are contacts who are touched more often more responsive? Do they have higher average revenues?
- What are the differences in contacts who are being touched across multiple channels versus those who are only touched by one? Do certain channels yield more responses or higher revenues?
- How many contacts are being touched by mutliple campaigns? What is the distribution and is it as you expected? Are your marketing teams aware of the overlaps?
We find that our clients are often surprised by the results from this higher level customer-centric marketing analysis, especially when teams are operating in silos. Perhaps you are reaching out to too few prospects, or your best customers are being too aggressively touched. Or you might find that there is a point after which additional touches increase neither responses nor revenues. In this case, you are better off reallocating resources to new audiences.
And finally, even when measuring individual campaigns, don’t forget to include the segment and attribute data mentioned above in your analysis. We have found cases where Campaign A was reported as performing significantly better than Campaign B, but when we incorporated additional attributes we found that the higher performance was not due to Campaign A itself but to the fact that Campaign A had a much higher ratio of customers with existing relationships.
About the Author:
Contact SIGMA today to learn more about how we can help you unlock those valuable consumer insights, by integrating your online and offline customer data.