Yospace
YoSpace
- Your Ecosystem
In
our present dynamic business environment marketers are increasingly challenged
to make better decisions by incorporating more complete information into their
decision-making processes. From strategic business planning to the
execution of tactical marketing plans, there is a huge opportunity for
data-driven marketers to leap to the head of the pack by making sound decisions
using consumer behavior information.
This
is just common sense, right? Therein lies the rub - it isn't easy. But the
results are worth the effort. It certainly not rocket science but a little
defined approach. You can make profitable marketing decisions by using the
scientific approach to rigorously manage and fuel the decision process.
The
YoSpace ecosystem brings to life this scientific
approach to marketing. It illustrates how you can adapt the scientific
process to optimize the performance of direct response tactics and ultimately
improve the customer experience. By being part of the YoSpace eco-cycle and with continuous improvement you can
optimize future decisions by learning from past ones:
1.
Understand consumer behavior: At
the beginning of the cycle, you must identify business issues such as target
market, product strategy and pricing strategy. Feed this information into
your strategic business planning. This should allow for the generation of
a hypothesis based on all relevant, current consumer and business
information. External research should be completed to supplement business
knowledge and facilitate planning. This external
research may include a review of the marketplace using available resources or
primary research. Examples of primary research include brand equity
research, consumer segmentation and new product research.
2.
Target consumers: The
second step is to move from strategic planning to tactical decision making with
respect to marketing plans. One important aspect of tactical direct
response plans is targeting consumers for a marketing treatment. Efficient
targeting results in higher response rates at lower cost; thereby improving
marketing ROI over untargeted direct response campaigns. A list of
targeted consumers is generated based on propensity behavior models. This
list is comprised of those consumers most likely to generate favorable campaign
results and an optimized campaign performance. For example, a response
model is completed and the output is a list of those consumers most likely to
respond. Other propensity models and resulting lists may be more relevant
depending on the business issue. A conversion model will generate a list
of those consumers most likely to convert and an attrition model will generate a
list of consumers who are most likely to abandon your business. Knowing
which consumers are at risk allows you to develop a targeted list for save
campaigns.
3.
Serve Customers: 80%
of all business are lost due to lack of proper follow
up and service. The third and probably most important of the cycle, you must
serve your target consumers with special attention which most often is
overlooked and will certainly make you different if you make this your best
practice. Small differences like personalizing their experience will be a
great start and with time understand their needs and make sure you serve them to
the best of your ability.
4.
Measure results: Understanding
what works in marketing campaigns and the financial return therein is
important. Marketers can use this information to justify their
investment. The only way to truly understand return on marketing
investment, however, is to measure consumer response to targeted marketing
campaigns. So, the analytical test design of the campaign is implemented
to set the stage for results measurement. The test design may be either a
test-and-control design or a multivariate test design depending on business
need.
From
there, the Analytic Cycle continues as marketers update and adapt their consumer
understanding using information from what has worked in past campaigns. By
creating a test and learn environment aligned with the scientific method,
marketers can make better business decisions and continuously improve ROI.
All thanks to a little science.