Use Predictive Analytics to Harness Big Data Power

Predictive analytics, meaning scientific analysis that leverages customer and donor data to predict future prospect and customer actions, can scientifically "cherry-pick" names from overwhelming "big data" lists and other files. For example, at AccuList, experienced statisticians build customized Good Customer Match Models and Mail Match Models to optimize direct mail results for prospect lists, as well as one-on-one models for list owners to help acquire more new customers or donors. Plus, predictive models can aid other marketing goals, such as retention, relationship management, reactivation, cross-sell, upsell and content marketing. One of the benefits of analytics is improved lead scoring, for example. Lead scoring is too often a sales and marketing collaboration, in which salespeople provide marketers with their criteria for a "good" lead and marketers score incoming responses, either automatically or manually, for contact or further nurturing. Predictive analytics will remove anecdotal/gut evaluation in favor of more accurate scoring based on data such as demographics/firmographics, actual behavior and sales value. It also speeds the scoring process, especially when combined with automation, so that "hot" leads get more immediate contact. And it allows for segmentation of scored leads so that they can be put on custom nurturing tracks more likely to promote conversion and sales. In fact, with predictive analytics, list records can be segmented to achieve multiple goals. The most likely to respond can be prioritized in a direct mail campaign to increase cost-efficiency. Even more helpful for campaign ROI, predictive analytics can look at the lifetime value of current customers or donors and develop prospect matching so mailings capture higher-value new customers. Predictive analytics also can tailor content marketing and creative by analyzing which messages and images resonate with which customer segments, identified by demographics and behavior, in order to send the right creative to the right audience. Finally, analytics can develop house file segmentation for retention and reduced churn, looking at lapsed customers or donors to identify the data profiles, timing inflection points and warning signs that trigger outreach and nurturing campaigns. Data analysis and modeling can also be used to improve future marketing ROI in terms of channel preferences and even product/services development. Of course, reliable predictions require a database of clean, updated existing customer or donor records, which AccuList also supports via its list hygiene and enhancement services. For helpful links, see https://www.acculist.com/predictive-analytics-harnesses-data-for-marketing-roi/

How Performing Arts Marketers Find Best Targets

Since AccuList USA has successfully worked with performing arts and cultural organizations in audience development, supplying data and data services to help them acquire new patrons, ticket buyers and supporters, we were happy to see a recent npENGAGE.com post underscoring the key role of quality data targeting in performing arts marketing success. Basically, performing arts marketers must acquire prospects with the potential to become long-term, high-value patrons; retain them; and maximize their dollar contributions. That challenge is not easy when studies show 72% of single-ticket buyers do not return, points out npENGAGE article author Chuck Turner, a senior analytics specialist at the Target Analytics agency for arts and cultural clients. So a cost-effective marketing strategy will rely on data analytics both to target those with the highest relationship potential and to personalize messaging and offers for boosted ROI and loyalty. For revenue generation, analysis should look at the value of patrons in terms of the average of all revenue earned, including things such as gift shop and concession sales and tuition for classes offered, as well as ticket sales and subscriptions, Turner urges. That means targeting likely high-revenue prospects, plus targeting the right members of the audience pool for offers of add-ons and upgrades. For both groups, Turner suggests selecting those with higher average income, and thus higher capacity to spend. When it comes to increasing donations, external list data on both discretionary spending ability and nonprofit donation history can be used to target significant nonprofit donor prospects for acquisition, and that data can be appended to the existing audience database to better target for add-ons and upgrades. Turner points to Target Analytics findings that, on average, up to 40% of nonprofit audiences can be top prospects for significant contributory giving--if you communicate to prospects with a message that resonates with their mission-based interest. With limited resources, performing arts marketers need to be more strategic and proactive in focusing on the most valuable segments. This means tracking lifetime value, defined as the net profit attributed to the entire future relationship discounted to its current value. Again, quality data can help target the right people--those with high lifetime value--with the right message. For both audience database and prospecting mailing lists, Turner stresses selecting targets based on charitable giving and income/discretionary spending ability. Conversely, knowing those unlikely to donate or spend helps minimize investment in unprofitable segments. For more, see http://www.acculistusa.com/how-can-performing-arts-marketing-find-the-best-targets/

At Year-end, Check KPIs to Gird 2018 Marketing

The busy year-end holiday season, especially for fundraisers and retailers, should not distract direct marketers from the working on the analytics they need to finalize next year’s marketing plans and ROI. Marketing ROI is about effective spending and requires tracking results by channel and campaign. KPIs use actual annual outlay for direct mail marketing (lists, print, lettershop, creative, postage), digital marketing (e-mail, SEO/SEM, landing pages, social media and creative), as well as spending on PR/events/content marketing. Marketers must keep a tally of the number of outbound leads attributed to direct mail or e-mail campaigns, as well as the inbound leads generated by efforts such as SEO, blog content or PR. Then a cost per lead acquired (CPL) can be calculated by dividing annual expenditure by the number of leads generated. Since the ultimate goal is sales not merely leads, the percentage of leads that become paying customers and the dollar sales per lead are key measures. Beyond general performance, marketers should use measurement to fine-tune future plans and budgets. This means identifying the response rates and conversion rates for each channel, for each direct mail and digital campaign, and for tests of creative, timing, frequency, lists and segments. Performance rates should be measured not only for campaigns to acquire new leads/customers but also targeting of existing customers and reactivation of dormant customers. Website traffic reports from Google Analytics can not only show online ad and SEM effectiveness but also track spikes around direct mail or e-mail promotions to give a fuller picture of response. A simple ratio of the return on marketing investment can be calculated by adding up incremental sales from marketing and subtracting marketing amount spent, and then dividing the result by amount spent on marketing. But remember that a focus on annual or campaign results can be myopic since these do not necessarily deliver long-term growth. Marketers need to look at customer and prospect databases to make sure they are growing year-over-year. Because acquiring a single sale per lead also is less profitable long-term than acquiring a repeat customer, average customer lifetime value is vital and calculated by multiplying average dollar sale per customer by the average number of purchases per year and the average retention time in years. For a helpful KPI checklist from Digital Dog Direct, see http://www.acculistusa.com/use-key-direct-marketing-kpis-to-gird-2018-plans/