Scoring Sales Success with Database Modeling
All names are not the same. That’s the basic truth underlying successful customer acquisition campaigns. Yet many marketers today overlook this fact when they embark on a telemarketing program. They accept a shockingly low response rate from a customer or prospect list as they focus their attention on winning sales and reaching customers by developing creative promotional concepts.
The result in far too many instances is hours of non-productive calls to consumers who have little likelihood of responding to the offer. This wasteful practice can be markedly improved by tapping the growing power and sophistication of database modeling protocols. Effective database modeling is built on the premise that all names are not the same – that better performing ones can be reliably predicted through careful list analysis, modeling and prioritization.
Analysis of a list’s prior response rates reveals important insights by answering questions such as:
- Does one geographic area, respond better than another region?
- Do urban markets outperform suburban ones?
- Do consumers residing in single family dwellings respond better than consumers living in multi-family dwellings?
The analysis doesn’t stop there. Here’s another factor to consider: How recently has a name been called? Over-contact is a red flag in telemarketing. If a properly coded list indicates a household has been called recently – that name should probably be suppressed, as the likelihood of a positive response is low.
Database modeling programs take all these inputs into consideration and then apply a scoring mechanism that ranks expected response rates from highest to lowest. This evaluation is invaluable in guiding the hourly efforts of telemarketing teams – focusing them on fully penetrating prospect names with the best potential for sales success.
Another important factor to ensure success is the assessment process must be continuous. For optimal results, as waves of a campaign are completed, the modeling program must evaluate performance on an ongoing basis, re-ranking remaining names before they are called.
Past performance is not a guarantee of future results, but it’s one of the most effective predictors of a successful telemarketing effort. As businesses relentlessly seek the best return-on-investment for their marketing investments, database modeling – skillfully applied – offers an impressive solution!
Hope you enjoyed this month's Dialogue.