WHAT WE DO / SOLUTIONS BY FUNCTION
Customer Management
Test Marketing
Test Marketing & Continuous Improvement
The objective of test marketing, described as the Holy Grail of direct marketing, is to know how well you are doing, so you can modify your marketing strategy. Test Marketing is part of a paradigm where the goal is to get constantly better and drive a process of continuous improvement.
LatentView adopts a test-marketing methodology based on design of experiments to help measure the success of your marketing programs. The following graphic highlights the key steps in a test and control process:
The theory underlying DoE thus primarily deals with the following tasks:
DoE principles have been successfully applied to improve the effectiveness of precision marketing activities (such as cross-sell/up-sell campaigns), by optimizing customer communications to different customer segments.
The approach taken is to experiment on different communication vectors (such as offer, channel, creative, timing, etc) to identify combinations that yield the best response rates, either for individual customer segments, or for the overall population. Alternatively, one could use a similar experimentation approach to identify the best customer segments to target for a given offer specification – the different experiment groups being different combinations of customer attributes.
While theoretically any of the communication vectors can be experimented with in a campaign, in real-life the offer to be made, channel (direct mail / e-mail, etc), timing, etc. are pre-specified for a campaign, and bulk of the experimentation is concentrated on the creative and the messaging strategy.
Customer Management
Test MarketingTest Marketing & Continuous Improvement
The objective of test marketing, described as the Holy Grail of direct marketing, is to know how well you are doing, so you can modify your marketing strategy. Test Marketing is part of a paradigm where the goal is to get constantly better and drive a process of continuous improvement.
LatentView adopts a test-marketing methodology based on design of experiments to help measure the success of your marketing programs. The following graphic highlights the key steps in a test and control process:
The theory underlying DoE thus primarily deals with the following tasks:
Constructing a manageable set of experiment groups (from among all possible combinations of factor levels), so as to measure the relationship between the factors and the response in an accurate, efficient and unbiased manner
Deciding on the right sample size for the experiment, so that the results are statistically significant
Assigning subjects to experiment groups in such a way that helps control for the nuisance factors in the experiment
Choosing the right statistical technique to analyze the results of the experiment
DoE principles have been successfully applied to improve the effectiveness of precision marketing activities (such as cross-sell/up-sell campaigns), by optimizing customer communications to different customer segments.
The approach taken is to experiment on different communication vectors (such as offer, channel, creative, timing, etc) to identify combinations that yield the best response rates, either for individual customer segments, or for the overall population. Alternatively, one could use a similar experimentation approach to identify the best customer segments to target for a given offer specification – the different experiment groups being different combinations of customer attributes.
While theoretically any of the communication vectors can be experimented with in a campaign, in real-life the offer to be made, channel (direct mail / e-mail, etc), timing, etc. are pre-specified for a campaign, and bulk of the experimentation is concentrated on the creative and the messaging strategy.
