I had the opportunity to hear David Spyra, an adjunct professor at Franklin University of Ohio give a presentation yesterday titled Measure Your Marketing. David’s day job is VP Business Analytics at JP Morgan Chase. He and his team are constantly honing who the bank is targeting, who is responding and why and then further focusing their targeting efforts. Millions of dollars are spent on messaging and delivery every year. If the bank can increase the success rate by a few percentage points the effect on revenue is exponential.
David teaches a 700 level class on marketing measurement at Franklin. The purpose of the presentation was to get marketing professionals in the community interested in his course.
David recommends that you develop a robust measurement process that includes the following 5 steps. Design, Approve, Execute, Monitor and Learn.
- who will you target?
- what is your offer?
- what is the size of your offer?
- what is your call to action?
- how will you know you are successful?
- (key) how will you learn?
- what is the business case
- what is the cost?
- how/what will I learn?
- are my lists right?
- audits / controls?
- what is the “test design” (need control group with no bleed)?
- what will I learn?
- regular adjustments during the study
- Did it work?
- Did you bring in the right customer?
- Did they stay with you?
- Are your assumptions correct?
- How do you make it better the next time?
The item that comes out of each step is Learning. Learning is a process that may take a long time. For example are the customers that you attracted with a promotion actually doing what you think they will do. The only way you can learn is to plan for and design the study to learn. How do you know you are successful if you don’t proactively define success? David said it is critical that the learning needs to come back to the team that designed the study so that it can be tweaked and improved for the next time.
A bit more complex than “Rinse and Repeat” from a shampoo bottle.
Until next time – All the best!