Recap: Data Analysis and List Profiling for Higher Campaign Response
By Bruce Meberg, senior vice president of Business Development, USADATA, Inc.
In order to reach the right audience for direct marketing acquisition campaigns, companies need to know as much as possible about their customers. Appending additional fields of information to each customer record is a great first step. There are several great business elements (e.g., industry, company size) and hundreds of potential consumer elements available (e.g., age, income, gender, marital status, home owner, life stage cluster, interests, etc.). A life stage cluster is a group of households with similar demographic characteristics and propensity to buy certain products and services.
One approach to gaining insight into customers that provides much of the benefit of high-end custom models, but at a fraction of the time and cost, is to append life stage clusters to each record, then analyze which clusters are appearing in the customer file more than would be expected (based on the cluster’s average share within the target geography). The highest 10-20% (7 to 15) of “indexing” clusters from the profile analysis can then be used to select prospect lists for acquisition campaigns. Life stage clusters offer a simple (single dimension of 60 or 70 different segments) yet powerful method, since they are based on a pre-defined model that was created using advanced statistical methods.
Life-stage clusters, such as Personicx, also come with rich background information on each cluster, so it is possible to create a modified message or variable data images for each cluster. Analyzing campaign response is also simplified…just look for the clusters with the highest response rate and use this information to fine tune the next campaign. All in all, a great way to get started on the path to higher response rates and marketing return on investment!
USADATA is a cloud-based/Data-as-a-Service (DaaS) company that combines consulting, data and technology to help its customers improve direct marketing ROI. The company’s data neutral experts have access to all leading compiled databases and specialty lists, and help businesses find new customers more easily and cost effectively through a combination of data (mailing lists and sales leads), consultative support, and easy-to-use technology.
This was a short recap of a recent XMPie Customer 1to1 Webinar series session. For more information on this topic and to learn about special XMPie customer promotions, visit www.usadata.com/xmpie.