How to evaluate campaign response — The relative contribution of data mining models and marketing execution

Abstract

Measuring campaign effectiveness is very important. After all, you need to measure to manage. Data mining has been introduced into mainstream marketing, and at the moment it is used most frequently to improve targeting. ‘ Closing the loop ’ is key in state-of-the-art database marketing. It means testing measuring – tweaking campaigns. Passes through these cycles are run at increasingly higher speeds. By manipulating both marketing execution and targeting, one attempts to increase response. Since these effects operate simultaneously, the infl uence they exert get mingled. As a consequence, measuring the effectiveness of campaigns is slightly more complicated. The author describes a comprehensive test-design to evaluate the relative contribution of marketing execution and data mining models in increasing response. As data mining models get reused, their effectiveness over time needs to be tracked. This framework includes both one-off evaluation and longitudinal monitoring of data mining models and marketing execution. Journal of Targeting, Measurement and Analysis for Marketing (2007) 15, 10