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The Guide to Maximizing Customer Marketing ROI The Guide to Maximizing Customer Marketing ROI

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Workshops, Project Work: Retail Metrics & Reporting, High ROI
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High ROI Customer Marketing: 3 Key Success Components

LifeTime Value and
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Customer Model:
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Customer Model:
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Customer Model:
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Calculating ROI

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Measuring Retention
in Online Retailing

Measuring CRM ROI

CRM Analytics:
Micro vs. Macro

Pre-CRM Testing for
Marketing ROI

Customer
Behavior Profiling

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Customer Marketing / CRM ROI Testing

Yes, it's true.  You can test your business and customer base for responsiveness to Database Marketing or Analytical CRM-driven techniques - and you don't need a data warehouse to do it.  Doing a test before diving into database marketing or CRM will cost a lot less in the long run, because after the test, you will know the answers to questions like these:

  • What are the values of my customers and how can they be segmented?
  • How responsive are my customers to data-driven marketing techniques?
  • Does the 80/20 rule apply to my business and customers?  To what extent?
  • How much can I spend on a "solution" and still get a reasonably fast payback?
  • What type of software functionality do I absolutely need, what functionality would be nice to have, what can I do without?
  • How do I measure and report on the ROI success of data-driven marketing?  What is likely to be my ROI on his activity?

For the test, we will craft a short-term plan of attack based on your resources, looking for the best "big idea" for creating an immediate impact on profitability.  Then we will execute a test of this idea, and measure both the direct results of the test and other customer metrics leading to a conclusion: a fact-based report on the ROI you can expect from data-driven customer marketing techniques.  We will also keep an eye on the long-term picture, making sure anything we do in the short-term is something you can use in the future.

If you are brand new to data-driven customer marketing and want your staff to be involved in the Test, consider scheduling a Database Marketing / Analytical CRM Roundtable session first to get everybody up to speed.

How It Works

1.  Customer - You provide an overview of your business and customers, any customer reporting you might have, and a snapshot of a customer record to let me know the kind of information you keep on a customer.

2.  Data -  get the data into a format we can use.  If you have a data warehouse or some smart programmers who can easily extract data from operational systems, I can specify all the requirements for this step.  If you don't have this capability, I can provide it by having an expert in ETL (Extract, Transform and Load) create a temporary solution.

3.  Reporting - we do a snapshot analysis of your customers, discovering segments, profiling current / future value, and determining a test approach in conjunction with marketing.

4.  Test - run the test, either through offline direct contact through the mail / phone, or online through a web site / e-mail, or both.

5.  Analysis - run results and the ROI models to determine the propensity of the customer to respond to database marketing techniques and the potential ROI of using this approach.

6.  Deliverable - Provide a final report summarizing the test, interpreting the results, and making specific recommendations on how much can be spent pursuing the data-driven customer approach while still generating a specified ROI.  I will also provide you direction on software functionality you will need to drive profitable programs - not specific software packages, but minimum requirements to accomplish your ROI goals.

That's it.  The Customer Marketing / CRM ROI Test can be completed with direct involvement of IT and marketing staff in a "teaching mode" or as a turn-key operation with the barest minimum of time involving your staff.  Using this testing approach is the most reliable way to ensure you only implement the customer marketing / CRM programs you can generate an acceptable ROI for.  At the same time, you will begin to understand your customers in ways you have never had access to before.

For more information on the Customer Marketing / CRM ROI Test program, or to discuss your particular situation and pricing,
e-mail me or Call (cell) 727.895.5454. 

 

 
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This is the original Drilling Down web site; the advice and discussion continue on the Marketing Productivity Blog and Twitter.

Download the first 9 chapters of the Drilling Down book here: PDF
Purchase Book           Consulting