Data Analysis

Max Kalehoff has written an excellent article for OnlineSpin, a Media Post Publication and as a post in his blog. “Ten Trends in Transforming Marketing Measurements” explores what marketing via the new media will mean for data-driven, response oriented advertising (and fundraising, of course) campaigns.  Here are excerpts from the article:

1. Digital network adoption. Mass adoption of the Internet and digital networks is fundamental, if obvious. Their impact on how we share and manage information is now perhaps the most significant influence on the evolution of metrics, among all that follow.

2. Attention erosion. Our networked society has resulted in massive increases in consumer choice and, from a marketer perspective, an erosion of attention. Many economists postulate that we’re undergoing a transition away from an economy based on shelf space to one based on attention scarcity.

3. Speed of measurement. The near-real-time intelligence delivery that characterized the Bloomberg terminal is permeating nearly all facets of marketing measurements. Even if measurements are not delivered instantaneously in a slick, colorful dashboard, the expectation of faster data and actionable insights is growing. Speed is a competitive advantage.

4. Democratization of data and analytics. There was once a time when access to vast piles of market-research data and processing power was contingent upon huge budgets. While that’s still true in many cases, digital networks have made more data more accessible–even sometimes to the point of open-source or free.

5. Observational measurements. In digital networks, people often passively emit both anonymous and identifiable gestures, whether it’s visiting a Web site, programming a TiVo, commenting in a public discussion forum or a host of other activities.

6. Unstructured data. Included with the arrival of observational measurement is analysis of unstructured data. From news stories to discussion forums to blogs to multimedia-sharing sites, people increasingly publish data abundant with insights and trends.

7. Beyond demographics. Traditional demographics–like gender and age–will always be important, but observational techniques are helping marketers to understand and segment their customers in new ways.

8. Customer-centric measurements and planning. The trends above have one thing in common: customers increasingly are at the center of the universe, versus companies, brands, products or media.

9. Data integration comes of age. With more customer and data touch points come the need for more data integration and better market modeling.

10. Reevaluating relationships with whom and what we measure. Finally, as consumers become more empowered, the disciplines of measurement and research will increasingly cater to them (just as marketers are doing in general).

Looking back at a botched fundraising campaign, every wonder why things didn’t pan out or test out the way you anticipated?  Most likely it wasn’t because you didn’t have enough information, maybe it was due to faulty thinking or poor pre-planning.  Maybe it was just a dumb idea in the first place.

The Bad Analysis blog (no joke), has published a list of the ten most compelling reasons why we make bad decisions in an article by that name.  You’ll find the full article here.  Below are the main points:

10. We’ve come this far… (sunk cost bias) - We all know that the past is past and we can’t get back money or time that we already spent. But many people irrationally take sunk costs, time, money, or other resources which have already been spent and can’t be recovered, into their decision making.

9. Me me me! (egocentric bias) - Putting yourself in another person’s shoes is harder than it sounds for most people.

8. That just proves my point. (confirmation bias) - Isn’t it a coincidence that no matter what happens in the world, politicians can spin it to show why that confirms their opinions? A cynical explanation is that politicians twist the truth to get what they want. But a more subtle explanation is that our brains tend to search for and interpret information in ways that support our pre-existing opinions.

7. That’s easy. (overconfidence) - While overconfidence is definitely a good thing in many situations, it probably means people don’t work on their weaknesses as much as they should.

6. I’m #1! I’m #1! (dysfunctional competition) - Have mixed feelings when you find out your co-workers get a promotion that you weren’t even interested in? You’re not alone. People’s happiness is often a function of what they have relative to others.

5. Mine mine mine! (endowment effect) - Why is it so hard for people to throw, give away or sell things that are past their prime? One theory is that people tend to place a higher value on objects they own relative to objects they do not.

4. Watch out for sharks. (availability bias) - People are suckers for recent and memorable events. So much so, that they think these types of events are more likely to happen than they actually are.

3. If everybody else thinks so… (conformity) - People make decisions based on what they think and not what everyone else thinks, right? Wrong!

2. Lets go hard 8! (illusion of control) - We all know that there’s no difference between my chances in craps if I have the dice or someone else at the table does, right?  It should also cause you to question the confidence of your co-workers who know they will hit an aggressive deadline even though there are many factors out of their control.

1. He’s just a moron. (attribution error) - Is the driver that cut you off a jerk? Or is he a good guy who didn’t see you because he’s distracted? So maybe it’s better to withhold judgment about a person until you’ve actually talked to them.

• The Nonprofit Sector in Brief: Facts and Figures from the Nonprofit Almanac 2007
  Facts and Figures from the Nonprofit Almanac 2007. Link to Urban Institute and downloadable highlights .pdf.
  (tags: nonprofit charity philanthropy)
• In TV Distribution Bout, It’s A Draw
  Both cable and network have survived and grown. Now, listening to major cable research executives, they speak in a different tone these days: Not only is cable growing, but TV viewing as a whole is growing.
  (tags: television trends viewing)
• Just as good at giving: Comparison between US and Europe
  It is an oft-quoted belief in philanthropic circles that the US is years ahead of Europe when it comes to charitable giving. But new research is now calling for a rethink, revealing that Europe’s corporate foundations give more than their American counter
  (tags: philanthropy charity Europe US)
• Are Philanthropic Networks an Effective Method of Giving?
  Philanthropic networks are on the rise. Their aim is to put smaller charities in touch with donors, but some argue they are duplicating existing infrastructure
  (tags: nonprofit philanthropy charity donors)
• No Medium an Island
  Media integration requires the interactive and direct marketing groups work closely together; this may mean cultural or managerial changes. What is acceptable and effective varies from medium to medium. The groups must respect each other’s expertise.
  (tags: interactive web media integration)

(I encourage everyone to get this report!) 

San Francisco, October 17, 2006 - The Direct Marketing Association (DMA) today released its 2006 Response Rate Trends Report, containing some of the most sought-after data on the benchmarks of successful direct marketing campaigns.

“In providing research and information about direct marketing, our most asked questions are what is a typical response rate and what channel will yield the best response for a particular direct marketing campaign,” said Anna Chernis, DMA’s senior research manager. “This report provides a dependable and robust benchmark for a wide range of industries and campaign types.”

In the report, four direct marketing objectives are isolated and reported on separately: direct order, lead generation, traffic building, and fundraising. The report also provides breakouts by direct marketing channel and type of list used (house file vs. prospect), as well as the market (consumer vs. business-to-business) and the industry being advertised.

Among the findings of this year’s report: · Direct Order & Fundraising: For direct marketers whose primary objective was to solicit direct-order sales or motivate customers to make a contribution, Catalog (2.30%) and Direct Mail (2.18%) produced the highest response rates.

Lead Generation: Telephone (2.60%) and E-mail (2.45%) produced the highest response rates for direct marketers whose primary objective was to generate leads.

Traffic Building: Catalog (10.34%) and Telephone (7.83%) have the highest response rates for traffic building, although these figures are based on a small sample of only five campaigns for Catalog and four campaigns for Telephone.

House File v. Prospects: House-file campaigns generally outperformed prospecting campaigns.

Consumer v. Business-to-Business Markets: When used for direct-order generation and fundraising, Direct Mail and Catalog work better in consumer markets. Other media, however, reported their highest response rates in the business-to-business market. Lead-generation and traffic-building campaigns both reported higher response rates for consumer audiences vs. B-to-B. Seven Media, 19 Industry Categories, 30 Products & Services.

The DMA 2006 Response Rate Trends Report includes data for more than 1,500 campaigns received in 2004, 2005 and 2006. For the first time, the report includes trend overviews. The report looks at seven media channels that may have been used solo or in combination to achieve specific campaign objectives: direct mail (flat), catalog, e-mail, inserts, outbound telephone, newspaper, and magazine. In addition, information is provided for 19 major industry categories consistent with the North American Industry Classification System (NAICS), as well as a selection of 30 specific products and services.

The full report is priced at $245 for DMA members ($445 for non-members). It can be ordered through DMA Book Distribution Center by calling 1.800.344.8328 (US) or +1.610.461.3548 (internationally) and online at www.the-dma.org/bookstore.

Source: Direct Marketing Association