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In the good ole days, BG (before Google), we could predict response rates and average orders for our best customers within 5%. The marketing team segmented the file, rolled out the projections, mailed the catalog, and filled out the deposit slip. (Okay, that is a little bit of an exaggeration, but if you have a traditional catalog background, you know exactly what I am talking about.)

Things have changed. Marketing plans are still diligently designed and implemented, but the returns are all over the board. Top segments are underperforming while bottom segments exceed plan. Lifetime value for the best customers is dropping. And, the scariest thing of all is that you may not see the cause and effect if you are using RFM (recency, frequency, monetary value) to segment your file.

There are two secrets, hidden deep in your house file. First, [Read more →]

In a world filled with gadgets and gizmos, all problems seem designed for high tech solutions. But, sometimes, the best answer is low tech or no tech.

This is the case with the DiveCam. It is used to provide close-up coverage of the divers as they compete for Olympic Gold. Garrett Brown’s clever invention uses gravity to synchronize the camera with the diver. (For more information on the DiveCam, read the WSJ’s article “Now Diving: Isaac Newton” in today’s edition.)

Ingenuity trumps technology again when UPS designed right turn only routes to save time, miles, and fuel. Combining right turns with no engine idling, they save millions of gallons of fuel annually.

You don’t have to be a genius or billion dollar organization to benefit from low-tech and no-tech solutions. Look around your operations for simple ways to save every day. For example, [Read more →]

Or, can it do better?

Allocating marketing money by channel is often like planning a trip to an amusement park. You have to decide which ride or activity will provide the best time, so you can get the most from your day at play.

(If you don’t remember what it is like, do some homework. Go to an amusement park or select another activity with lots of choices for fun. Hard work and no play is not a way to spend your days!)

Some people choose a few rides and ride them over and over. Others try to ride as many different ones as possible. Both techniques are okay because it is all about having fun.

Many marketing teams do their resource allocation the same way. Some choose the channels they are most comfortable with and promote unmercifully. Others spread the resources across all channels. Neither approach works well because they do not include a strategy for receiving the maximum return. [Read more →]