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
- How responsive are my customers to data-driven marketing
- Does the 80/20 rule apply to my business and customers? To
- 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
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
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.