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Response Analysis

Don't underestimate what response analysis can do for your business.

Today's technology can tell marketers an almost endless amount of information about who's buying from them. And, a good data partner works closely with marketers to focus on what they really want to know and how to use the information once they've got it.

In essence, matchback or response analysis looks at all transactions that occurred during a particular window of time that a catalog, marketing piece or campaign is in play. Using the latest technology, the data partner matches the marketer's transaction data back to the mail file used, going far beyond what they may be able to capture on their own using key or promo codes.

"Good response analysis allocates revenue to the appropriate sources to effect an overall ROI," explains Tom Kaczmarek, National Sales Manager for QuadDirect Data Solutions. "It's a scientific way of determining the value of that campaign. And, the analysis almost always increases the overall ROI of that direct marketing event, because the marketer can truly understand a campaign's response. It gives them actionable information."

Response analysis also allocates source information back to the appropriate list segments and allows a marketer to look at a break-even point by list, by segment, by mailing and more, according to Tom. This process helps marketing professionals decide what to do next time. A report can give specific metrics on a whole host of factors and help increase understanding about the value of each one.

Levels of Analysis

The basic level of response analysis, for example, can report on average order size as well as revenue per piece mailed, among other data. The information is based on the marketer's transaction data, what fields that marketer wants to include, and what they want to learn.

The next level - an ROI analysis - includes information on profit per segment by taking costs into account. Those costs are determined - and supplied - by the marketer, so some may include the costs to produce and mail the piece plus any promotional costs, giveaways or discounts.

"I believe the ROI analysis is really the place to start," Tom notes. "Clients start using response analysis, and they see the revenue per piece mailed and the next question is always, 'What was our profit?' You don't have complete information with anything less than an ROI analysis. And really, what else matters?"

Focusing on what works

Response analysis also helps by ferreting out bad lists and segments. "You're going to really understand the true value of every list you use," Tom explains. "What's the response rate? Average order value? Profit per customer? That helps you determine whether you should use a particular list again."

Smart marketers also combine response results with other marketing intelligence, such as past purchase history, to identify and develop loyal customers and to convert one-time buyers into multi-buyers.

"Response analysis can take you in all kinds of directions, and dramatically improve your mail plan and circulation strategy," Tom explains. "You may target a new segment or space your campaigns differently or mail more frequently to one segment over another. And, 99 percent of the time, this process helps our clients understand that print is driving response."

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