Data Analytics Overview
Impact has specialized in getting postage discounts for its customers since we began. But as the industry has changed so have our capabilities. One of the pieces of our business that continues to grow is Data Analytics. There are four main pieces; Customer Profile, Response Analysis, RFM Analysis and Sales Analysis. Below we give an overview of these tools as well as what we would need from you and what they can do for you.
Customer Profile:
A profile answers the basic marketing questions: “Who are my customers and where are they located?” Standard customer profiles have five elements: Age, Income, Spectrum lifestyle segments, zip code list, and trade area mapping. Profiles compare the distribution of customer households to the distribution of market households for each attribute, and calculate percentages and index scores for each category.
How can you use it?
• Market segmentation, prospect targeting, list development, customer distribution mapping, segmented messaging, and site selection.
What do you need to provide?
• Customer list, including name and address.
Response Analysis:
A response analysis is a great way to measure the overall performance of a marketing campaign. It tells you what, when, where, and how much your customers are buying from you. Response analyses allow you to test results from different offers, list sources, graphics, media, and communication mixes. It helps you understand how your clients interact with your offer and guides you in investing your marketing dollars in order to achieve the greatest return.
How can you use it?
• Track the performance of initiatives through key metrics such as response rate, cost per lead, average sale, advertising to sales ratio, sales per mailing, and campaign run-out.
What do you need to provide?
• Mailing list (including name, address, and effective dates).
• Response data (including name, address, date, and sale information).
RFM Analysis:
A recency, frequency, monetary analysis quantifies which customers are the best by examining how recently a customer has purchased, how often they’ve purchased, and how much they’ve spent. This analysis allows you to identify your top customers, and it is often the case that 80% of your business comes from 20% of your customers. It shows you who to target with maintenance, growth, or reminder strategies in order to achieve the greatest return on your marketing dollars.
How can you use it?
• Identify most valuable customers, identify lapsed customers, campaign optimization, customer segmentation, customer retention, and loyalty marketing.
What do you need to provide?
• Historical sales data (including name, address, date, and sale information).
Sales Analysis:
A sales analysis identifies seasonal, monthly, and weekly sales patterns to guide campaign timing, and shows who is buying what so that you can pair offers with market segments. It shows you which audiences will be the most receptive to various offers, and when those offers should be made.
How can you use it?
• Identify causes of sales variations and trends, optimize timing of offering to stimulate the maximum response, and calculate overall return on direct marketing investment.
What do you need to provide?
• Historical sales data (including name, address, date, and sale information).