When it comes to improving promotions, it’s important to examine your data in a number of ways. Analyzing how various groups are responding, as well as their characteristics, can help you identify why some are performing better than others.
To help you pinpoint what works best for your business, we’ve assembled five data points you should consider before planning your next promotion.
- Look at your response rates by list, effort, rate and product.
- Review profit and loss of specific promotions and lists. See which ones are the most successful.
- Create list codes for your in-house database segments to analyze the effectiveness of each group.
- View the history of response rates by list code to determine how they have changed over time.
- Review the lifetime value of subscribers from various lists. Some promotional offers are not cost effective in the first year, but when the price of the products and the renewal rates of these subscribers are factored in, the promotions are very profitable over time.
After reviewing these five components, create a new plan using your findings. Spending your marketing dollars wisely with profitability as the key goal will help improve your bottom line.