How should I measure campaign performance?
ROI – not to be confused with your mate Roy…
Without clearly defining marketing campaign goals, you will be unable to determine how to measure campaign performance.
Normally, success is measured in terms of ROI (return on investment). To build an estimate for your anticipated ROI, the calculation can be based on the anticipated conversion ratio, multiplied by the estimated average customer lifetime value (or value over a defined time-frame), divided by the total communication cost.
The communication cost calculation will normally take into consideration the cost of running the campaign in addition to standard fixed overheads, including for example, data, printing, paper stock, call centre costs, postage and design.
Ultimately, before running a campaign, you should be confident that the overall campaign, or at least measurable elements of the campaign, will create a measurable positive ROI over a defined time-frame.
Where possible, try to divide the campaign into measurable test cells / a testing matrix, so that learnings can be determined around which areas of the campaign would likely be successful and unsuccessful in a roll-out. By measuring in this way, even an unsuccessful test might highlight opportunities for future success.
An experienced data strategist will be able to build a matrix that enables multiple learnings from a relatively small campaign.
