Remember when kids were sent off to school for the 3 R’s: Reading, (w)Riting and ‘Rithmetic? If you’re a marketer, you’re likely looking at some different – but equally important – R’s to measure the success of your campaign: Revenue, Response Rate, and Reduction in overall marketing cost.
When it comes to e-mail marketing, how do you begin to move the needle on those key performance indicators (KPIs)? For many, fine tuning an e-mail campaign amounts to a combination of intuition and luck. If the numbers are up one week and down the next, was it timing? Did something in the title strike a chord – or not? Why did just 12% of those who opened your mail click on a link this week, when nearly 35% clicked last week?
With today’s “Big Data” and predictive analytics power, the marketing industry has found a direct marketing solution that has made great strides toward understanding and targeting customers, creating models that are much more dynamic and precise than traditional customer segmentation. One such analytics tool is Arjuna’s Persanalytix, which takes your customer data and supercharges it into highly actionable and granular customer insights. These valuable insights allow you to direct your e-mail marketing strategy (or any other direct marketing channel) with strategic precision rather than best guesses.
So, how does predictive analytics and Big Data help drive the three R’s of marketing success?
- Revenue – Using a predictive analytics tool can predict the likelihood – or propensity – of a particular customer to make a purchase or donation. What’s more, it helps you match your messaging to the style most likely to move your customer segments (or personas) to action. You have the power to predict whether a sentimental appeal or a just-the-facts style Call-To-Action (CTA) will work best. This fine tuning can have a dramatic increase on the bottom line results from your marketing campaign.
- Response rate – The most dazzling e-mail you can create only works if people open it, spend time with it, and click through to your hyperlinks or CTA. Using the same tools that drive revenue, a predictive analytics tool can help you tailor your message to your audience, delivering meaningful responses in opens, click throughs, and conversions.
- Reduction (in overall marketing cost) – Not only will better targeting deliver more meaningful actions by your customers, it will also allow you to fine tune your lists. With advanced analytics, you’re able to spend your marketing dollars more strategically, eliminating the need to keep boosting raw numbers to increase sales.
How helpful can this information be? Take a look at the results of one of Arjuna’s advanced analytics users, The Food Bank of South Jersey. By applying the power of Persanalytix to its own data, FBSJ saw a dramatic rise in the three R’s through a direct mail campaign:
- 12% increase in Revenue
- 140% increase in Response Rate
- 50% Reduction in Direct Mail Campaign Costs
This helped the organization make better use of donor dollars, while increasing donation amounts, but more importantly, they found a direct marketing solution that provided them a sustainable way to increase the 3 R's of marketing success.
Of course, better targeting of direct mail marketing adds up to the most important R of all: RESULTS.