Table of contents for

Accountable Marketing: The Economics of Data-Driven Marketing

 

1 Understanding the Economics of the Marketing Continuum

Where Accountable Marketing Started and How

The Marketing Continuum

Building the Brand is Paramount: But at What Cost?

The Real Cost of a Free Lunch

Strict Accountability: The Special Strength of Direct Marketing and CRM

Investing in the Future

Average:The Most Dangerous Word in Contemporary Marketing

Notes

 

2 Understanding Allowable Cost per Order (ACPO)

The ACPO Informs All Marketing Actions

Targeting Sales Promotions

The “Micro” View: Better than the Big Picture

Where Accountability Begins

Moving from “Case Rate” to Customer Rate

Customer Identification Potential at Retail

The Challenge: Minimizing Waste

Calculating the ACPO

The Dynamic Effect of Different Response Percentages on Profits

Sometimes It Is Better Not to Promote to Everyone

It Is Almost Always Possible to Test

Believing the Unbelievable is Dangerous

Determining the Allowable Cost per Name for a Customer Database

Making Customers for Life

Notes

 

3 The Importance of Customer Focus

Calculating the Relative Value of a Square Foot of Retail Space and of a Customer

The Marketing Database: Much More than a List of Names

Data: Understanding and Insight

The Most Likely Prospects Are Almost Always Better and Less Expensive

The “Household”: A Better Marketing Unit than the “Individual”

Attrition: The Enemy of Profit

The Best Time to Stop Attrition: At the Beginning of a Purchasing Sequence

Keeping the Customer Happy, Well Served and Fulfilled

Notes

 

4 Customer Relationship Management

The Location of the Most Effective and Efficient Integrated Marketing Database

How Much Can We Afford to Spend for CRM?

Is It Better to Keep the Customer You Have or Get a New One?

Segmentation: The Key

Small is Beautiful

Making Choices

Exercising Judgment

Sensitivity Is Key

Where Do We Want to Go and What’s the Best (and Most Economical) Way of Getting There?

Is Corporate Management Really On-Board for CRM?

Notes

 

5 The Economics of Different Direct Selling Sequences

Choosing the Right Selling Sequence

Selling Single Items

Cost of Access to Market: A Key Factor in DM Pricing

The Necessity for Price Testing

Just Start Dating

Continuity Sales

Thinking of “Contribution and/or Profit” as a “Cost” is Essential

Enhancing Continuity Selling with Load-Ups

Club Selling

Catalogs: The 24/7 Store in the Home

Establishing the Right Balance Between Catalog Customers and Prospects

Selling by Subscription

Up-Selling and Cross-Selling

Up-Selling: Moving the Customer up the Value Ladder

Cross-Selling: Selling a Variety of Goods

Understanding the “Profit Dynamic”

Notes

 

6 Complex Products and Services: Their Special Characteristics and Economics

Give Away the Razors and the Cameras: Sell the Blades and the Film

The Challenge of “Combination” Transactions

Are You Going to Sell a Product, a Service, or Both?

Good Content is the Most Important Churn Reducer

Making Planning Calculations Should Be Easy

Content is King: Consumers Will Subscribe and Pay for Superior Content

To Test or Not to Test: Always Test and Compare

Which Offer to Go with?

Clubs May Be Exclusive: Their Economics Are Not

Financial Service Products: Complex Products Needing a Unique Perspective

Credit Cards

Giving Credit Where Credit Is Due

Unused Credit Cards Share Space in Wallet, Not Share of Wallet

Unique Aspects of Selling Insurance

Keeping the Insurance in Force: Where the Profit Is

Don’t Sell Only One Policy: Sell as Many as Possible

Notes

 

7 Using Incentives to Stimulate and Enhance Sales and for CRM

Incentives or Bribes: A Two-Edged Sword

Incentives Come in All Forms and Sizes

Reward and/or Recognition

Free Gifts, Self-Liquidators, and Profitable Premiums

Sweepstakes & Prize Drawings

Points and Bonus Miles: The “In” Incentive

Notes

 

8 Testing and Archiving: The Foundation Stone for Marketing Improvement

Testing: The Key to Success

The Highest Response Percentage Is Not Always the Most Profitable Segment

Reading Test Results Takes a Combination of History and Judgment

The Sooner You Can Predict Final Test Results, The Sooner You Are Ready to Rollout

Archiving is Critical: It Paves the Way to a Successful Future

Notes

 

9 Promotional Planning and Control

The 175% Solution

Cost Per “Contact” Conditions Cost Per Order

The Prospect Is Almost Always Multidimensional

While Driving on the Highway, Stop and Eat Where Lots of Trucks Are Parked

Required: Rigorous Analysis and Experience

     Direct Mail

     Smart Mailers Pay Only for Net Names

     Print Advertising

     Inserts

     Package Inserts & Take-Ones

     Telemarketing

Broadcast: Radio and Television

The Internet  and E-Commerce

E-Mail: Direct Mail without Having to Pay the Postman or the Printer

The Economics of Marketing on the World Wide Web

Media Planning and Testing

Choosing the Right Media: An Exercise in Making Comparisons

Notes

 

10 Strategic Planning for Accountability

Marketing Objectives and the Product: Where Planning Begins

     Developing the Marketing Objectives

Focusing on the Detailed Planning Issues

Briefing Internal Departments and Outside Agencies

Building the Business Plan

Project Implementation

Planning Customer Contact and CRM Strategy

Selling the Plan to Management

Notes

 

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