Presentation on theme: "Measurement for Marketing Effectiveness – data challenges and how to meet them Trevor Jones Marketing Databasics 25th June 2009."— Presentation transcript:
Measurement for Marketing Effectiveness – data challenges and how to meet them Trevor Jones Marketing Databasics 25th June 2009
Some themes A buzz about marketing effectiveness Some history Metrics for marketing basics Getting serious about marketing effectiveness “Common sense systematically applied” A consistent focus on the customer Covering measurement, not targeting/ modelling/ segmentation
A history of the ‘customer view’ Even the ‘early starters’ seldom have an absolutely complete view Consolidation has been a major issue in the insurance/assurance sector – has held things back FM sector a late adopter 3 Start of the ‘customer focus’ journey RETAIL BANKS LIFE & PENSIONS GENERAL/ CONGLOM. INSURERS FUND MANAGERS
Things going backwards with the internet! Silo development Stress on technology rather than customer management Little integration between on-line and off-line behavioural data A serious un-plugged gap, given the importance of on-line channel Technology is available to plug it But it is not just about technology, it’s about customer management on-line
CUSTOMER LIFECYCLERECRUITMENT DEVELOPMENT LAPSATION CUSTOMER BASE Essentially, all marketing spend supports the customer lifecycle We recruit them We develop them And we try and retain them It’s surprising how often customer-centric metrics and reporting are not in place to allow a high-level assessment of marketing effectiveness to be made
CUSTOMER LIFECYCLERECRUITMENT DEVELOPMENT LAPSATION RECRUITMENT Volumes and costs by channel Characteristics Source – increasingly difficult to measure Downstream value? Business health check?
CUSTOMER LIFECYCLERECRUITMENT DEVELOPMENT LAPSATION DEVELOPMENT Cross-sell and up-sell statistics (and goals?) Beware x-sell ratios! Customer profitability/NPV Marketing measures: Interaction measurement Contact densities (Campaign measurement [primary/secondary sales]) Channel impacts/preferences Spend by profit or NPV Feedback to recruitment, forward look to lapsation Precursors to campaign optimisation
CUSTOMER LIFECYCLERECRUITMENT DEVELOPMENT LAPSATION LAPSATION/RETENTION Systems issues – can customers get ‘lost’ ‘Good’ v. ‘bad’ lapsation Measurement & strategy Value lost/value ‘saveable’ ROI on retention activities – short and medium term Business health check?
What to do with marketing metrics Agree them! Implement them! – and make them easily accessible Use them! Will give you a high level view of marketing effectiveness Beware the elephant in the room!
More silos, marketing measurement and getting more complicated ATL/BTL/ONLINE marketing spend What are they for? How integrated is the planning? How clearly are goals and response/ performance measures specified in advance? Channel cross-over – some examples ATL impact on existing customers? Interaction between channels Measuring the origin of web enquiries/orders Direct measurement is often not enough
A time series approach Increasingly, measurement using a time series approach is appropriate, e.g. Marketing spend at customer level v. change in behaviour/spend Cross-channel effects – e.g. ATL spend and internet inquiries Separately tracking effect of advertising spend on existing/new customers
A new approach - a fusion of econometrics and database analysis Typically, econometrics has been used by ATL agencies to ‘mark their own homework’ Adspend v headline sales But by combining customer database metrics with time series analysis, the range of what can be achieved expands significantly, for example Measuring response to all types of campaign across all channels Disaggregating ‘new customer’ & ‘existing customer’ effect of campaigns We call this :