Question

Topic: Research/Metrics

Measuring "less" Of A Loss/decline

Posted by hachem on 250 Points
What is the best way to go about proving that your marketing program is responsible for less of a decline in subscribers (in my case) than we would have had if we did nothing? Circulation has been declining and I need to set goals for a year from now. How can I set a realistic and measurable goal for staving the decline?
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RESPONSES

  • Posted on Accepted
    One of the best ways to demonstrate differences in impact due to a marketing program is to run a test on one audience, saving a portion of that audience as a "control" - a group which is not exposed to the program. You need to make sure that the test and control groups are as similar as you can possibly make them and that they are made up of similar proportions of different customers (e.g., in your case, subscription length and other demographic attributes that are fundamental to your business.)
  • Posted by Dawson on Member
    If you have the data, econometrics is useful and will help you estimate the ROI.

    Another exercise you could run through is a Delphi forecasting method.
  • Posted by Frank Hurtte on Accepted
    I personally like the using analytics to measure results. The idea already floated above of using a control vs the new program allows for continuous improvement and more importantly PROOF>
  • Posted by mgoodman on Accepted
    The test/control approach is ideal. If that's not possible, though, you can forecast what you would expect sales to be with an extrapolation of your current trend line. Then measure actual sales against that baseline forecast.

    If you want to be a real purist, you may want to "clean up" your trend line before you project it into the future ... take out any seasonal effects, unusual events in the base period that might skew the trend, promotions, competitive activity, etc.

    We've used both approaches -- occasionally at the same time -- and they seem to work fine.

    If the forecast trend line is really a critical measure, you might consider having an analytics expert consult with you for the set-up. There are a lot of nuances in the process that can have a material effect on your measurement.

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