The Business of Campaign Response Tracking

Transcription

1 ABSTRACT SAS The Business f Campaign Respnse Tracking Pamela Dixn, SAS Institute Inc. Tracking respnses is ne f the mst imprtant aspects f the campaign life cycle fr a marketing analyst, yet this is ften a daunting task. This paper prvides guidance fr hw t determine what is a respnse, hw t define a respnse fr yur business, and hw t cllect respnse data. Yu can apply this guidance when using SAS Marketing Autmatin and mre generally, when assessing the effectiveness f a marketing campaign. INTRODUCTION Campaign respnse tracking is the prcess f cllecting data that identifies custmers wh have respnded t a cmmunicatin frm a campaign prgram via a specific channel such as , direct mail, SMS messaging, and telemarketing. Campaign respnse tracking enables yu t cmplete the marketing life cycle by extracting results frm a campaign prgram that help yu evaluate the success f the campaign. The results can help yu d the fllwing tasks: Determine hw effective a campaign prgram was at driving respnses. Determine which creative triggered the mst significant respnse. Perfrm analysis t determine future segments t target in a campaign. Optimize verall campaign perfrmance by using mre targeted campaigns t increase respnses and imprving return n investment (ROI) by reducing the cst per piece and per respnse. One f the mst critical aspects f imprving the success f a marketing campaign is tracking respnses. T effectively track campaign respnses, yu must understand and dcument the campaign bjective, execute criteria that are aligned with the bjective, knw the rle the channel plays in achieving yur bjective, and define the metric t use t measure and attribute yur respnses. Campaign prgrams yield bth direct and indirect respnses. A direct respnse has the fllwing characteristics: The respnse has an established cntrl grup r benchmark. The cntrl grup enables yu t measure against the target audience and analyze lift in respnse against cnsumers wh did nt receive the cmmunicatin. The respnse has a tracking cde r methd f assciating an ffer with a specific campaign prgram. The respnse by subject r member f target audience riginates frm the campaign prgram. The initiatin f cntact t the target audience is written t cntact histry. Data pints frm a respnse histry prcess capture activity that directly crrelates respnses t a call t actin. The respnse is a result riginating frm a campaign prgram frm a cntact that is written t cntact histry. The respnse is within the campaign prgram target dates. Indirect respnses t a cmmunicatin are the mst difficult t track and can vary depending n business rules. Indirect respnses are cmmnly knwn as inferred respnses because the respnse t a campaign prgram by the marketer is nt based n a data pint that clearly identifies that the target respnded directly t a call t actin frm a campaign prgram. An indirect respnse t a campaign prgram has the fllwing characteristics: The respnse might nt have an established cntrl grup r bench mark it can be cmpared against. The respnse might nt be identified with a tracking cde r methd f assciating an ffer with a specific campaign prgram. The respnse by subject r member f the target audience may r may nt riginate frm campaign prgram.

2 Initiatin f cntact t target audience may r may nt get written t Cntact Histry Data pints frm a respnse histry d nt necessarily capture activity that directly crrelates a respnse t a call t actin The respnse is a result frm a cntact that des nt necessarily riginate frm the campaign prgram and the cntact is nt written t cntact histry Respnse is nt necessarily within campaign prgram target date Defining yur respnse attributin metrics helps t decipher campaign perfrmance as a direct result f a campaign prgram. INDUSTRY AND CHANNEL ATTRIBUTION BY CAMPAIGN TYPE The prcess f capturing campaign respnses and attributin is unique acrss industries and varies depending n campaign type. Each campaign type has several initiatives fcused n retentin, upsell, crss-sell, and acquiring new prspects. Retentin: Cmmunicate with custmers after the purchase f a prduct and establish a relatinship with infrmatinal, educatinal r cngratulatry campaign prgrams. Upsell: Prvide an incentive t persuade the custmer t upgrade his r her existing prduct t a prduct with a higher mnetary value r t purchase anther prduct. These actins increase the number f prducts per custmer. Crss-sell: Prvide an incentive t persuade a custmer with an existing prduct t purchase a secndary prduct. Prspect: Prvide an incentive fr cnsumers wh d nt have an existing prduct r relatinship with the seller r prvider. Understanding the industry and the call t actin fr each type f campaign helps yu define business rules fr respnse tracking. It is critical that yu identify the data cmpnents that represent the presence f a cnversin f a call t actin t a respnse in the data repsitry. Identifying a respnse cnversin is usually the mst cmplex task t define and measure. T identify respnse cnversin and respnse cnversin rate yu must d the fllwing tasks: Agree n a definitin f a respnse cnversin fr individual campaigns. Identify the data requirements fr the cmputatin. Identify the data requirements that enable a definitin t evlve. Figure 1 shws examples f businesses in several industry categries. Entertainment Hspitality Retail and Grcer Casin Resrts Department Stre Travel Htels Big Bx Stre Financial Services Banking Health and Life Science Health Care Management Telc Insurance Hspitals Cable Vacatin Catalg Investment Clinic Sprts Organizatin (NBA, MLB, NFL, NHL) Publishing Grcer Cellular Phne Hme Phne Figure 1. Industries by Categry The direct marketing methd f cntact t a targeted audience can have a significant impact n campaign respnse rate.

3 Figure 2 shws several methds f cntact and the expected respnse types. Channel Channel Descriptin Call t Actin, Respnse r Activity Online The number f s pened The number f clicks n links cntained in the The number f s sent The number f s that were nt sent The number f page visits prmpted by the Pstal Mail The number f mailed ffers that were redeemed Scial Media SMS (text messages) Facebk Twitter Ggle The number f fllw-up calls frm recipients Activity Type: Sentiment: Number f mentins Number f fllws Amunt f psitive feedback Amunt f negative feedback Kisk,terminals,registers Pint f Sale Number f ffers redeemed Telemarketing Hme phne Cell phne Business phne Number f purchases Number f psitive cntacts (number f cnversins frm the call t actin t a respnse) Figure 2. Respnse by Channel A respnse des nt always equate t a member f a target audience cnducting a transactin that results in a sale r purchase f a prduct. Depending n the industry r channel, a respnse can mean that the persn wh receives the direct mail executes the call t actin. Fr example, the cnsumer cntacts the cmpany, asks fr the ffer, sets up a sales call, requests a white paper, fllws up with a nurse, r ges t the website landing page set up fr the prmtin. When the call t actin des nt result in a mnetary redemptin, the data repsitry must be designed t stre attributes that yu can use t capture a redemptin cde r attributes that can be used t identify a respnse. EVALUATION OF CAMPAIGNS When campaigns have verlapping and extended prgram perids, yu must be able t cmpare the initial campaign prgram perid and the verlap campaign prgram perids: Cmparisn perids: Initial campaign prgram perid (campaign start date t campaign end date) Overlap campaign prgram perid (perid after initial campaign start and end windw) Knwing the cmparisn perids can help yu determine which campaign t attribute each respnse t. The verlap campaign prgram perid allws fr attributin f respnders after the initial campaign perid. Lng campaign prgram perids (especially a 52 week perid) can shw unusual spikes due t seasnality (spending is higher during the Christmas hlidays and lwer during summer vacatin). It is best t have shrter campaign prgram perids because a shrter perid gives yu an earlier measurement f the success (r failure) f the prgram. Yu can react mre quickly t the results f the campaigns success r failure. Custmers wh were nt cntacted during the riginating campaign but wh respnd with a redemptin cde are utside f the scpe f the initial campaign prgram perid and verlap campaign prgram perid. These respnses shuld be excluded frm the respnse metrics fr the given campaign. Respnses frm new custmers, frm accunts that are newly created, and frm accunts that have n activity befre r after either evaluatin perid are als excluded. Separate campaigns are develped t evaluate these custmers.

4 TEST AND CONTROL GROUPS A test grup is the target audience that receives the riginating cmmunicatin r ffer during the initial campaign prgram perid. The cntrl grup is a representative sample f the test grup with identical characteristics. Hwever, the cntrl grup audience des nt receive the riginating cmmunicatin r ffer. Using a cntrl grup can enable yu t effectively cmpare the strengths and weaknesses f the ffer(s), creative r channel. In cnclusin, the target audience f the test and cntrl grups must share the same characteristics in rder t test the impact f a specific ffer, creative r channel. Fr cmparisn purpses, each target audience shuld be arranged int a class r segment based n hw well each campaign mdel scred in terms f respnses. This segmentatin makes it easier t test, cntrl, measure, and design current and future campaigns. After segmentatin is applied, the representative sample f the test and cntrl grups is selected randmly r frm a representative sample. These terms are defined here: Randm sample: Every nth custmer frm the ttal selectin fr yur cntrl-grup Representative sample: A cntrl grup that represents yur typical structure f the selectin. CAMPAIGN MEASUREMENT Yu analyze the results f a campaign based primarily n the gals set frth fr the campaign. Here are examples f sme cmmn types f measurements used fr campaign analysis: Results by custmer Results by week Result by mnth Results frm the test grup versus results frm the cntrl grup Measuring at varius levels helps t determine campaign return n investment figures, by custmer, by custmer segment, and ultimately, by campaign. T determine the prfitability f the test and cntrl grup, analyze the revenue generated by the test and cntrl grup and cmpare the difference. Campaign metrics t cnsider: Return n Investment (ROI): Revenue divided by Cst Fr example, if the test grup ges frm $1 t $3 per custmer per mnth, and the cntrl ges frm $1 t $2, yu have a net gain f $1 per test grup custmer. Yu can attribute this grwth t the campaign. Multiply that $1 by the number f custmers in yur test grup, and yu have the incremental revenue. Prfit: Respnse Revenue minus Marketing Cst Actual Respnse Rate: Number f Respnses divided by Number f Cntacts expressed as a percentage Marketing Cst: Fixed Cst divided by the Number f Cntacts per channel RESPONSE TRACKING PROCESS ASSESSMENT When implementing a respnse tracking data repsitry, cnsider the fllwing factrs: Determine wh, hw and when the cntact is made in campaigns. Determine the rules fr selecting the test and cntrl grup. Determine what cnstitutes a direct respnse fr each channel. Determine what cnstitutes an indirect respnse fr each channel. Outline the types f campaigns that are eligible fr respnse tracking. Outline the types f respnses expected. Review, in detail, the existing respnse histry data mdel (if available). Determine the business rules fr develpment f a new respnse histry data mdel. Decide whether t use a different type f mdel r ne that is designed t meet the specific needs f the marketing plan.

5 The respnse histry data mdel includes the fllwing specificatins: evaluatin perid measurements t be recrded retentin perid fr respnse histry Determine the surce f the respnse data: Third-party data: Data received frm the service prvider. This data can include clicks, bunce backs, pt uts. Internal peratin system: Data frm yur relatinal database management system that stres custmer and transactin data. Campaign management surce data: Metadata abut yur campaign that riginates frm yur campaign management tl. BUILD PROCESS FOR RESPONSE TRACKING Figure 3 illustrates a typical respnse tracking prcess that writes respnses t a respnse histry table. The first step in the build prcess is t cllect business rules t determine the definitin f a respnse based n the available data acrss systems. RESPONSE TRACKING BUILD PROCESS CAMPAIGN METADATA CI_COMMUNICATION_EXT CHANNEL_PROMO_EFF_START_DT CHANNEL_PROMO_EFF_END_DT Is date within identified timeframe? CAMPAIGN 1 Campaign Results (published) CI_CELL_PACKAGE Is date within identified timeframe? CAMPAIGN_START_DT Are attribute values equal t identified criteria? ETL Prcess CAMPAIGN 2 Respnse Histry Campaign Results (published) CAMPAIGN 3 Campaign Results (published) CI_PACKAGE_X_TREATMENT CI_CELL_PACKAGE_SK PACKAGE_CD COMMUNICATION_OCCURRENCE_NO COMMUNICATION_NM COMMUNICATION_CD CAMPAIGN_NM CAMPAIGN_CD CHANNEL_CD TREATMENT_CD CONSUMER_KEY(subject_id) CHANNEL_PROMO_EFF_START_DT CHANNEL_PROMO_END_START_DT CAMPAIGN_START_DT CAMPAIGN_END_DT CELL_PACKAGE_SK CONTACT_DTTM TREATMENT_CD PROJ_EXPENSE PROJ_PRINT_PROD_DIST_COST_PER_PIECE PROJ_RESPE_RATE PROJ_TARGET_AUDIENCE TOT_COUP_VALUE_PER_CHANNEL CI_CONTACT_HISTORY TOT_COUP_NUM_PER_CHANNEL CAMPAIGN_DURATION_WEEKS OFFER_TYPE SEGMENT INTERNAL OPERATIONAL SYSTEM CONTACT_DTTM CONTACT_HISTORY_STATUS Is date within identified timeframe and are attribute values equal t identified criteria? CAMPAIGN_TYPE CAMPAIGN_GOAL COUPON_REDEMPTION_DATE REDEMPTION_AMT COUP_UPC_NUM STORE_ID ZONE TRANSACTION_KEY COUPON_SCAN_WGHT_QTY TRX_COUPON_REDEMPTION CUSTOMER DATABASE 3 rd PARTY DATA DIGITAL RESPONSE Figure 3. Respnse Tracking Build RESPONSE HISTORY BUILD APPROACHES When yu build a respnse histry repsitry yu must first cnsider the data available t yu t identify custmers wh have redeemed an ffer r taken an actin. This can be even mre challenging when respnse data is captured by a third party. Fr example, respnse data fr channel campaigns is typically captured by an service prvider such as CheetahMail r ExactTarget. The build f the respnse histry repsitry must be able t accept this data seamlessly. The first apprach assumes the campaigns and types f expected respnses are fixed. The repsitry t stre respnses is predefined. An extract, transfer, and lad (ETL) prcess must be emplyed t ppulate the

6 respnse histry table with the respnses. This apprach assumes that the types f campaigns and expected respnses are predefined as part f the marketing prcess. Anther apprach can accmmdate flexible campaign and respnse types fr bth direct and inferred respnses. This apprach uses an extract, transfer, and lad (ETL) prcess t identify a direct respnse but requires anther surce system t assciate indirect respnses. A standard list f respnse cdes must be defined t enable dwnstream reprting prcesses t interpret the respnse. After building the repsitry t stre yur respnse tracking data, cmpile yur results int a useful and cmprehensive presentatin by bringing tgether everything that matters: scial media, ffline marketing, web analytics, and s n, int ne reprting interface where yu can rganize, review, and make decisins. CONCLUSION Regardless f the apprach, the type f campaign, industry, r channel, tracking marketing respnses is the key t imprving campaign perfrmance and yur bttm line. T get the mst ut f yur respnse tracking prcess, develp reprts t illustrate the results f what matters mst t yu by lking at the big picture and at specific derived data frm the infrmatin yu ve gathered. Fr example, digital sales rganizatins typically depend n seasns, hlidays, and events t bst their annual sales. A ne-mnth reprt desn t prvide much insight int hw well a campaign is ding ver time. Yu can add cntext by adding a mnth-ver-mnth cmparisn reprt, r by cmparing the revenue results fr this seasn, hliday, r event t the same seasn in a previus year. Illustrate yur target r anticipated numbers, as well as hw clse r hw far yu are frm meeting thse targets. Figure 4 illustrates the results f a grcer wh is tracking husehld segments that purchase premium cffee during three perids. Respnses are captured befre the initiatin f the campaign, within the campaign tracking perid, and after the campaign tracking perid.

7 Figure 4. Husehld Penetratin by Categry Segment Respnse Tracking Reprt Figure 5 illustrates respnse rates by channel. It cmpares the expected respnse rate t the actual respnse rate and prvides yu with valuable insight int high-perfrming channels. Figure 5. Channel Capacity Planning Reprt Finally, autmate yur respnse tracking reprts as much as pssible. Identify a tl r tls that make it pssible t send and receive reprts dynamically t enable yu t quickly analyze and take actin. Respnse tracking helps yu t understand yur custmers and visitrs, as well as imprve yur verall campaign perfrmance by enabling yu t make educated campaign decisins, achieve higher ROI frm yur marketing initiatives, and gain better insight int yur business.

8 REFERENCES Direct Marketing Assciatin. Available Accessed n April 1, Database-Marketing. Available Accessed n April 1, Alhu, Feras Tracking Marketing Respnse: Building Yur Measurement Framewrk. WebPrNews. Available King, David Determining Campaign Respnse Rate. CONTACT INFORMATION Yur cmments and questins are valued and encuraged. Cntact the authr at: Pamela Dixn [email protected] SAS and all ther SAS Institute Inc. prduct r service names are registered trademarks r trademarks f SAS Institute Inc. in the USA and ther cuntries. indicates USA registratin. Other brand and prduct names are trademarks f their respective cmpanies.