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Measuring CRM Impact 
v.1.0 Nick Metcalfe 
CRM benefits from the unenviable fact of being able to track individual behaviors and activities from 
direct communications. To attribute specific direct messaging impact on constituents, we create a 
hold-out group who does not receive any direct marketing messages. This hold out group must be 
similar and representative of the target constituents. If the database is large enough a 1% hold out 
count will typically suffice. 
Challenge  Accepting a hold-out group as your control to measure your direct marketing efforts 
over time. 
CRM Metrics in a nutshell 
1. What type of metrics can be measured with CRM? 
 There are a variety of metrics/ KPIs (key performance indicators) available for CRM within your ecosystem. You can measure the growth and size of your 
database, level of information captured, your predictive accuracies when building response/upsell/risk assessment or attrition models, your campaign 
performance of emails, direct mail, telephony and social media. Any direct response method to an individual/household should have a detailed list of metrics 
which you should forecast in advance of the initiative. For Development, ultimately what is CRMs contribution (in dollars) for our activities and spend. 
2. Do you mean the universal hold out group never receives a communication from us? 
 Not directly, correct. The 1% universal hold out group enables us to measure the incremental impact of CRM and the dollars raised by CRM initiatives alone. 
 This group is still exposed to the awareness campaigns and other marketing efforts, just not direct. 
3. Why do we care about measurement, we should just target everyone? 
 In CRM it is important to measure incremental impact. If you have no hold out group, you have nothing to compare against. Using year-ago or historical 
as a measure is not statistically accurate. 
4. What is LTV, CLV? 
 Life Time Value, or Customer Lifetime Value are measures of an individuals contribution to you over time. Even though the term suggests life time, the 
measure can be used over set time periods, such as 1 year, 5 years, 10 years, 30 years and all increments in between. 
11/25/2014 
Graphic example of 
members marketed to 
(red line), versus the 
hold out (purple, lower 
line)

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Measuring CRM Impact POV v1.0 6-25-13

  • 1. Measuring CRM Impact v.1.0 Nick Metcalfe CRM benefits from the unenviable fact of being able to track individual behaviors and activities from direct communications. To attribute specific direct messaging impact on constituents, we create a hold-out group who does not receive any direct marketing messages. This hold out group must be similar and representative of the target constituents. If the database is large enough a 1% hold out count will typically suffice. Challenge Accepting a hold-out group as your control to measure your direct marketing efforts over time. CRM Metrics in a nutshell 1. What type of metrics can be measured with CRM? There are a variety of metrics/ KPIs (key performance indicators) available for CRM within your ecosystem. You can measure the growth and size of your database, level of information captured, your predictive accuracies when building response/upsell/risk assessment or attrition models, your campaign performance of emails, direct mail, telephony and social media. Any direct response method to an individual/household should have a detailed list of metrics which you should forecast in advance of the initiative. For Development, ultimately what is CRMs contribution (in dollars) for our activities and spend. 2. Do you mean the universal hold out group never receives a communication from us? Not directly, correct. The 1% universal hold out group enables us to measure the incremental impact of CRM and the dollars raised by CRM initiatives alone. This group is still exposed to the awareness campaigns and other marketing efforts, just not direct. 3. Why do we care about measurement, we should just target everyone? In CRM it is important to measure incremental impact. If you have no hold out group, you have nothing to compare against. Using year-ago or historical as a measure is not statistically accurate. 4. What is LTV, CLV? Life Time Value, or Customer Lifetime Value are measures of an individuals contribution to you over time. Even though the term suggests life time, the measure can be used over set time periods, such as 1 year, 5 years, 10 years, 30 years and all increments in between. 11/25/2014 Graphic example of members marketed to (red line), versus the hold out (purple, lower line)