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| Dynamic Prospect Management |
 Marketing
Allocation Tool – DPM
Measurement in direct response programs needs to evolve
to a more comprehensive view of customers and be inclusive
of their individual revenue contribution. Despite the
customization and personalization opportunities available
with database marketing programs, most direct response
communication programs are limited to legacy “control” “challenger” package
testing.
DPM changes that approach.
DPM is a program strategy to increase total revenue contribution
across the entire customer population. This is accomplished
by analytically determining the most relevant marketing
communication for each individual.
Once we identify the dimensions that differentiate customers,
we estimate the response rate than can be expected for
each communication per person. This is determined by
applying Nested IP Regression techniques using results
from all relevant mailings– both control and test
mailings.
People are multi-dimensional and effective database marketing
programs should leverage and operationalize the data
influencing decision-making. DPM accomplishes this by
understanding both main and corollary influences on purchase
motivation.
The practical marketing applications of DPM
include developing custom communication vehicles or better
targeting/assignment of existing marketing vehicles through
the deployment of rules-based segmentation.
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