Presentation on theme: "Business Intelligence and Decision Modeling Week 12 Campaign Management: Testing & Performance."— Presentation transcript:
Business Intelligence and Decision Modeling Week 12 Campaign Management: Testing & Performance
Outline Testing and Control Groups (Chap. 14) Campaign Performance Measurement (Chap. 12) Analytics and Modeling Revisited (Chap. 13)
About Testing Interactive marketing Vs traditional advertising Testing Vs market research Testing Vs management resistance
Testing for Effectiveness Copy (communications) Execution (creative) Package bundles and offers Clickstreams (email and websites) Cross-channels
Topics in Testing Methodology Sample size Control group or benchmark Test groups set aside for time length Half-life …
Testing Methodology Half-life 100% 50% 33% 25% Response Time
Testing Methodology: CI for a given sample P +/- CI or P +/- Z x SE p or P +/- Z √(pq/n)
Testing Methodology: CI for a given sample CI = +/- Z x √(pq/n) If p =.04, n = 10,200 and Z = 1.96 CI = 1.96 √(.04 x.96/ 10,200) CI =.0038 Thus UCL =.0438; LCL =.0362 Two-tail test! Note: CL confidence level (Z), CI confidence interval (+/-), UCL and LCL Upper and Lower confidence limits
Two-tail Test for CL.025 Z = 1.96 for 95% CL.04.0438.0362 -.00368.00368 +/- 2 SD
Testing Methodology: Sample size for a given CL If CI = Z x √(pq/n) Then CI = Z x √(pq/ √ n √n = Z x √(pq) / CI If p =.04, Z = 1.96 and CI =.0038 √n = 1.96 √(.04 x.96)/.0038 √n = 101 or n = 10,215 Two-tail test!
Testing Methodology: CI for a given sample CI = +/- Z x √(pq/n) If p =.04, n = 10,200 and Z = 1.64 CI = 1.64 √(.04 x.96/ 10,200) CI =.003182 Thus UCL =.043182 One-tail test! Note: CL confidence level (Z), CI confidence interval (+/-), UCL and LCL Upper and Lower confidence limits
One-tail Test for Sample.05 Z = 1.64 for 95% CL.04.043182.00318
Testing Methodology: Sample size for a given CL If CI = Z x √(pq/n) Then CI = Z x √(pq/ √ n √n = Z x √(pq) / CI If p =.04, Z = 1.64 and CI =.0038 √n = 1.64 √(.04 x.96)/.0038 √n = 84.57 or n = 7,152 One-tail test!
Test against Control One single item variable: 2 Groups SPSS DM Control Package Test SPSS Independent Sample T-test Also available on Excel One single item variable: 3+ groups SPSS Compare means Oneway ANOVA
Testing Interactive Marketing Treatments Two or more variables: experimental design Two-way ANOVA (Excel and SPSS)
Testing Treatments (2) B1B2Total A A1(A1,B1)(A1,B2)(A1) A2(A2,B1)(A2,B2)(A2) Total B(B1)(B2) CopyRationalEmotionalTotal Ask Ask HighIncome 1Income 3Ask High 1-3 Ask LowIncome 2Income 4Ask Low 2-4 Total CopyRational 1-2Emotional 3-4
Testing Treatments (3) Rational Tone Emotional ToneTotal Ask Ask High815 Ask Low5108 Total Tone75.5
e-commerce/emails Campaign Effectiveness Delivered Click to open (CTO) Unique click / Click through rate (CTR) Cost per impression (CPI) Paid per click (PPC) Cost per action (CPA) Cost per lead (CPL)
Clickstream Analysis SearchPreference Edit profile Welcome Main message Download Offer Discount Offer Second subject/ offer Links/ DirectoryViral information
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