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Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
Awesome. Pretty good. Awful. Which Prospects are you Contacting?
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Awesome. Pretty good. Awful. Which Prospects are you Contacting?

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Having lent an ear to hundreds of organizations in 20 data network programs over the years, TRG’s Will Lester has heard some great stories about contacting prospects to build new audiences. There’s …

Having lent an ear to hundreds of organizations in 20 data network programs over the years, TRG’s Will Lester has heard some great stories about contacting prospects to build new audiences. There’s the one about the helicopter drop (massive mailings), and the MacGyver maneuver (source coding), and a personal favorite that’s the title of this webinar (data-informed contacts). Some of these activities work beautifully, others fail miserably, and all provide a foundational understanding of the state of the art in smart targeting to find new patrons.

In this one-hour session, you’ll hear how those stories can help you develop contact campaigns that get response and great return on your time and money. Take back to your desk inspiration and some great ideas for testing, measuring and getting in touch with the best prospects for your upcoming campaigns. There’ll be plenty of time to ask questions about how to make the most of your database and your budget. You’ll learn:

-Basic tools that can test and measure results as well as diagnose prospect responsiveness.
-How best to maximize the “awesome,” optimize the “pretty good,” and eliminate the "awful" prospects.
-Why and how to apply the 40-40-20 rule to your direct contact campaigns.

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  • At TRG, we use data to helpclients achieve results. TRG Arts was founded in 1995 by our late, great founder Rick Lester. Our firm has grown on pioneering strategies in pricing and loyalty that today have become proven in the results our clients achieve.We are based in Colorado Springs, Colorado with 35 team members, each focused on providing guidance and solutions that are patron-based….that is, ticket buyer, member, donor, event attendee…any PERSON engaged with an organization)…for sustainable loyalty of patrons and sustainable revenue from those patrons.
  • We’ve worked with about 1,200 organizations in arts and entertainment over nearly two decades, in three countries: in the United States…these are some of our marquee clients….click
  • In all aspects of our work – and especially in our consulting – we focus on INTEGRATED loyalty growth, meaning, viewing the patron through one lens, one data set, one integrated set of actions. Loyal patrons attend or visit regularly, they subscribe and become members, they donate and invest. These are measureable, transactional metrics that add up to lifetime value, which is our measure of success in the specific arena that we operate in – the field of arts and culture.
  • As I mentioned earlier…….our firm is the largest provider of community data networks in the US – 20 in all and located across the United States, with New York City coming on as network number 21 in 2014. You heard me say that we are a “data-informed” consulting firm. In fact, data informs every strategic solution we offer at TRG, and enhances the expert knowledge of the staff team on which TRG is built. We have a catbird seat from the data networks we manage to observe some 35 million arts consumers and their transactions. We study and learn who is investing in the arts, how, when, and where. We are constantly seeing trends and patterns that not only help us understand arts consumers but also to inform our work. We are constantly working to harness the power of this data to develop client solutions and to benefit industry knowledge for very practical operational applications. 
  • This opera client had done one drop of mail to each half of a 60,000 record database—ALL the records in their database.
  • But within those 60,000, there were awesome, pretty good and awful prospects.
  • Next year they only mailed to the segments that had an awesome or pretty good response the previous year.
  • Ed Mayer, also known as “the father of direct marketing education” developed the 40/40/20 Rule in the 1960’s.  More than 50 years later the formula still guides most of the world’s direct marketing campaigns.  This rule states that 40 percent of your direct marketing success is dependent on your audience, another 40 percent is dependent on your offer, and the last 20 percent is your creative.
  • Here are stats from an example campaign—how most people look at it.
  • But, if you look by segment (things like single ticket buyers from last year, subscribers/members from this year, etc), you begin to see how well you really did.
  • These are the places to look. (ROI calculated by taking revenue divided by cost)
  • For round #2 of mailings, this is what we can project.
  • So, what are the awesome, pretty good and awful segments?
  • This segment needs to go. We net more and save around $700.
  • What about this one?
  • If we took Seg. D out, we’d have a very efficient campaign. Is that right for you? Depends…
  • Transcript

    • 1. Where We Focus TRG Arts 1. Integrated Loyalty 2. Measured by Lifetime Value 3. Arts & Culture Specific
    • 2. What We Do Patron Results 1. Consulting Capacity building for sustainable growth 2. Data Services Aggregation, analysis, direct response counsel 3. Community Data Networks 35 million households
    • 3. Patron Loyalty Core Concepts 10-15% 85-90%
    • 4. Patron Origination Familiar Faces Renewals – Last year’s audience members Reactivated – Returning audience members from past seasons
    • 5. Patron Origination New Faces Community Arts – First-time audience members who also do other community arts. New-to-file – First-time audience members with no community history
    • 6. Patron Origination Familiar Faces • 50% of audiences are NEW each year. • 50% of audiences are replaced each year. Renew 38% Reactivate 12% Community Arts 23% NewToArts 27% Source: TRG Arts 2012 National Patron Origination Study
    • 7. Patron Origination Implications New Acquisition: Find more people at a lower cost. Retention: Hang on to more people and not leave money on the table.
    • 8. How do you know if you are doing it right?
    • 9. Case Study An Opera: Year 1 DM1: 30,000 DM2: 30,000 60,000 RECORDS
    • 10. Case Study An Opera: Year 1 AWESOME PRETTY GOOD AWFUL DM1: 30,000 DM2: 30,000 60,000 RECORDS
    • 11. Case Study The Next Year DM1: 40,000 DM2: 20,000 Results: • No Increase in Cost • +30% in New AcquisitionRESPONSE TRACKING
    • 12. Direct Response Best Practice
    • 13. Response Analysis Core Concept How did your campaign do? • We got almost a 1% response… • We sold about $20K… • Our ROI was 4-1… Is that good?
    • 14. Response Analysis Core Concept Segment Mailed Response % Resp. Revenue Avg. Order Cost @ $0.45 NET ROI Seg. A 1,750 26 1.5% $5,775 $220 $788 $4,988 7.3 Seg. B 750 15 2.0% $3,450 $230 $338 $3,113 10.2 Seg. C 500 20 4.0% $4,900 $245 $225 $4,675 21.8 Seg. D 6,000 24 0.4% $4,800 $200 $2,700 $2,100 1.8 Seg. E 1,750 4 0.2% $595 $170 $788 ($193) 0.8 TOTAL 10,750 89 0.8% $19,520 $220 $4,838 $14,683 4.0 Example Campaign Round #1 Results
    • 15. Response Analysis Core Concept Segment Mailed Response % Resp. Revenue Avg. Order Cost @ $0.45 NET ROI Seg. A 1,750 26 1.5% $5,775 $220 $788 $4,988 7.3 Seg. B 750 15 2.0% $3,450 $230 $338 $3,113 10.2 Seg. C 500 20 4.0% $4,900 $245 $225 $4,675 21.8 Seg. D 6,000 24 0.4% $4,800 $200 $2,700 $2,100 1.8 Seg. E 1,750 4 0.2% $595 $170 $788 ($193) 0.8 TOTAL 10,750 89 0.8% $19,520 $220 $4,838 $14,683 4.0 Example Campaign Round #1 Results
    • 16. Example Campaign Round #1 Results Response Analysis Core Concept Segment Mailed Response % Resp. Revenue Avg. Order Cost @ $0.45 NET ROI Seg. A 1,750 26 1.5% $5,775 $220 $788 $4,988 7.3 Seg. B 750 15 2.0% $3,450 $230 $338 $3,113 10.2 Seg. C 500 20 4.0% $4,900 $245 $225 $4,675 21.8 Seg. D 6,000 24 0.4% $4,800 $200 $2,700 $2,100 1.8 Seg. E 1,750 4 0.2% $595 $170 $788 ($193) 0.8 TOTAL 10,750 89 0.8% $19,520 $220 $4,838 $14,683 4.0
    • 17. Example Campaign Round #1 Results Response Analysis Awesome/Pretty Good/Awful Segment Mailed Response % Resp. Revenue Avg. Order Cost @ $0.45 NET ROI Seg. A 1,750 26 1.5% $5,775 $220 $788 $4,988 7.3 Seg. B 750 15 2.0% $3,450 $230 $338 $3,113 10.2 Seg. C 500 20 4.0% $4,900 $245 $225 $4,675 21.8 Seg. D 6,000 24 0.4% $4,800 $200 $2,700 $2,100 1.8 Seg. E 1,750 4 0.2% $595 $170 $788 ($193) 0.8 TOTAL 10,750 89 0.8% $19,520 $220 $4,838 $14,683 4.0
    • 18. Power Tracking
    • 19. Response Analysis Predicting the Future 1. Who is left to contact? - Mailable names minus responders 2. How will they Respond? - Experiment with 70% of previous response and adjust 3. Project Average Order Size 4. Cost Per Piece
    • 20. Response Analysis Core Concept Segment Mailed Response % Resp. Revenue Avg. Order Cost @ $0.40 NET ROI Seg. A 1,724 18 1.1% $3,620 $200 $690 $2,930 5.3 Seg. B 735 10 1.4% $2,161 $210 $294 $1,867 7.4 Seg. C 480 13 2.8% $3,024 $225 $192 $2,832 15.8 Seg. D 5,976 17 0.3% $3,012 $180 $2,390 $622 1.3 Seg. E 1,747 2 0.1% $367 $150 $699 ($332) 0.5 TOTAL 10,661 61 0.6% $12,183 $200 $4,265 $7,919 2.9 Example Round #2 Projection DM1 Results 10,750 0.8% $220 $0.45 ea.
    • 21. Response Analysis Core Concept Segment Mailed Response % Resp. Revenue Avg. Order Cost @ $0.40 NET ROI Seg. A 1,724 18 1.1% $3,620 $200 $690 $2,930 5.3 Seg. B 735 10 1.4% $2,161 $210 $294 $1,867 7.4 Seg. C 480 13 2.8% $3,024 $225 $192 $2,832 15.8 Seg. D 5,976 17 0.3% $3,012 $180 $2,390 $622 1.3 Seg. E 1,747 2 0.1% $367 $150 $699 ($332) 0.5 TOTAL 10,661 61 0.6% $12,183 $200 $4,265 $7,919 2.9 Example Round #2 Projection
    • 22. Response Analysis Core Concept Segment Mailed Response % Resp. Revenue Avg. Order Cost @ $0.40 NET ROI Seg. A 1,724 18 1.1% $3,620 $200 $690 $2,930 5.3 Seg. B 735 10 1.4% $2,161 $210 $294 $1,867 7.4 Seg. C 480 13 2.8% $3,024 $225 $192 $2,832 15.8 Seg. D 5,976 17 0.3% $3,012 $180 $2,390 $622 1.3 Seg. E 1,747 2 0.1% $367 $150 $699 ($332) 0.5 TOTAL 10,661 61 0.6% $12,183 $200 $4,265 $7,919 2.9 Example Round #2 Projection 59 0.7% $11,817 $202 $3,556 $8,251 3.38,915Projection A
    • 23. Response Analysis Core Concept Segment Mailed Response % Resp. Revenue Avg. Order Cost @ $0.40 NET ROI Seg. A 1,724 18 1.1% $3,620 $200 $690 $2,930 5.3 Seg. B 735 10 1.4% $2,161 $210 $294 $1,867 7.4 Seg. C 480 13 2.8% $3,024 $225 $192 $2,832 15.8 Seg. D 5,976 17 0.3% $3,012 $180 $2,390 $622 1.3 Seg. E 1,747 2 0.1% $367 $150 $699 ($332) 0.5 TOTAL 10,661 61 0.6% $12,183 $200 $4,265 $7,919 2.9 Example Round #2 Projection 59 0.7% $11,817 $202 $3,556 $8,251 3.38,915Projection A
    • 24. Response Analysis Core Concept Segment Mailed Response % Resp. Revenue Avg. Order Cost @ $0.40 NET ROI Seg. A 1,724 18 1.1% $3,620 $200 $690 $2,930 5.3 Seg. B 735 10 1.4% $2,161 $210 $294 $1,867 7.4 Seg. C 480 13 2.8% $3,024 $225 $192 $2,832 15.8 Seg. D 5,976 17 0.3% $3,012 $180 $2,390 $622 1.3 Seg. E 1,747 2 0.1% $367 $150 $699 ($332) 0.5 TOTAL 10,661 61 0.6% $12,183 $200 $4,265 $7,919 2.9 Example Round #2 Projection 59 0.7% $11,817 $202 $3,556 $8,251 3.38,915Projection A 42 1.4% $8,805 $210 $1,176 $7,629 7.52,939Projection B
    • 25. Response Analysis The Results “Maximum Revenue” $11,817 59 Orders 0.7% Response Rate 3.3 – 1 ROI Projection A “Maximum Efficiency” $8,805 42 Orders 1.4% Response Rate 7.5 – 1 ROI Projection B
    • 26. Double Day When to Test DailyOrders Days Double Day: 50% of Orders Collected
    • 27. Response Tracking Source Code Tracking Pros: • Free • Fast Cons: • Incomplete • Inaccurate
    • 28. Response Tracking Response Reports Mailed Responders Pros: • Super Accurate Cons: • Timing • Cost
    • 29. Case Study Reporting Matters
    • 30. Case Study Response Personas
    • 31. Case Study True Results
    • 32. Case Study Response Tracking $450,000 Source Code Tracking 1.5% Response Rate 10-1 ROI Response Reports $881,000 $599k @ 1.4% + $282k 20-1 ROI
    • 33. Case Study Response Tracking $450,000 Source Code Tracking 1.5% Response Rate 10-1 ROI Response Reports $881,000 $599k @ 1.4% + $282k 20-1 ROI

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