Dec 11, 2007
Driving Transpromo ROI
Transpromo, just like any other communication, is an opportunity to meet an objective.
The opportunity? An established audience (most likely your entire customer base) who opens, reads, and saves select documents or communications you send.
The objective? Well that?s the point of this column. There are three important elements to calculating ROI.
- measurable objective
- cost
- results
Certainly a level of ROI can be determined using only 2 and 3. The resulting measurement will be fairly high level and in most cases not reveal the successes (and failures) of the process in much detail.
What is the objective? And remember, objectives should be measurable. Here is an example using an insurance company that wants to gain market share with young drivers.
- Basic Objective: To insure new drivers.
- Refined Objective: To insure 500 new drivers
- Targeted Objective: To insure 500 new drivers who are potentially a low risk
Going with the first objective one could argue that bringing on even one new customer is a success. Why not just mail all current customers and see who responds? Not cost effective.
Going with the second objective begs the question: where to find the 500? Are there current customers with dependents nearing driving age? Make this group the first extract of the database.
Going with the third objective refines the goal even more. Are there current customers who have good driving records who also have dependents nearing driving age? Perhaps these new drivers may have learned something from their good driver parents! Targeting this group may provide the best possible results.
The third objective actually makes the goal more achievable because it forces a refinement of the question: ?where is the best place to find the 500??
Setting clear and measurable objectives compels us to set parameters which in turn triggers refinements to the process. For example, establishing a budget for printing and mailing helps determine the number of people that can be contacted in the marketing campaign. The contact group must then be pared down to a specific number to stay within budget.
Once the campaign runs, it?s time to measure the results.
There are actually two ROI measurements in my example. First, did 500 new drivers within the targeted demographic become customers? Second, did they really end up being low risk drivers?
Only time with tell. Fasten your seatbelts; it?s going to be a bumpy ride!