Presentation is loading. Please wait.

Presentation is loading. Please wait.

Business Intelligence and Decision Modeling Week 12 Campaign Management: Testing & Performance.

Similar presentations


Presentation on theme: "Business Intelligence and Decision Modeling Week 12 Campaign Management: Testing & Performance."— Presentation transcript:

1 Business Intelligence and Decision Modeling Week 12 Campaign Management: Testing & Performance

2 Outline Testing and Control Groups (Chap. 14) Campaign Performance Measurement (Chap. 12) Analytics and Modeling Revisited (Chap. 13)

3 About Testing Interactive marketing Vs traditional advertising Testing Vs market research Testing Vs management resistance

4 Testing for Effectiveness Copy (communications) Execution (creative) Package bundles and offers Clickstreams ( and websites) Cross-channels

5 Topics in Testing Methodology Sample size Control group or benchmark Test groups set aside for time length Half-life …

6 Testing Methodology Half-life 100% 50% 33% 25% Response Time

7 Testing Methodology: CI for a given sample P +/- CI or P +/- Z x SE p or P +/- Z √(pq/n)

8 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

9 Two-tail Test for CL.025 Z = 1.96 for 95% CL /- 2 SD

10 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!

11 One-tail test for CL

12 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 = Thus UCL = One-tail test! Note: CL confidence level (Z), CI confidence interval (+/-), UCL and LCL Upper and Lower confidence limits

13 One-tail Test for Sample.05 Z = 1.64 for 95% CL

14 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 = or n = 7,152 One-tail test!

15 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

16 Testing Interactive Marketing Treatments Two or more variables: experimental design Two-way ANOVA (Excel and SPSS)

17 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

18 Testing Treatments (3) Rational Tone Emotional ToneTotal Ask Ask High815 Ask Low5108 Total Tone75.5

19 Campaign Performance (Traditional and online)

20 Interactive Marketing Campaign Effectiveness CPM, RPM, OPM (Cost, Revenue and Orders per M or thousand) CPO (Cost per order) CPR (Cost per Response)

21 Cost Measures CPM = (Cost / Volume) * 1000 (19 000$ / ) * 1000 = 380$ CPM media ((Media + Insertion)/Circulation) * 1000 ((40 000$ + (10 * 1 000))/ ) * 1000 = 60$ (Insertions are charged in CPM)

22 Response Measures Response in % = (Response / Quant.) * 100 RPM = (Response / Quant.)*1000 OPM = (Orders/Quant.)*1000)

23 and Web Analytics

24 e-commerce/ s 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)

25 Clickstream Analysis SearchPreference Edit profile Welcome Main message Download Offer Discount Offer Second subject/ offer Links/ DirectoryViral information

26 Clickstream Analysis

27

28 Performance Name 1 2 Mailed 1,172,839 Delivered 1,129,444 1,138,827 Del%96.30%97.10% Opened 242, ,763 Open%21.50%23.60% Unique Click 44,681 54,559 CTR18.40%20.30% Conversion 1,385 1,582 Conv. Rate3.10%2.90% Tot. Sales$169,551$190,498 $ per Del$0.15$0.17 Avg. Order$122.42$ Mailing Costs$10, Cost per Open$0.043$0.039 Cost per Click$0.236$0.193 Cost per Sale$7.621$6.672

29


Download ppt "Business Intelligence and Decision Modeling Week 12 Campaign Management: Testing & Performance."

Similar presentations


Ads by Google