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How to effectively measure customer communications

The UK’s leading data analytics company, Aquila Insight, looks at how multichannel analytics can help measure the effectiveness of customer communication.

Effective measurement of marketing – both direct and indirect – has long been a challenging field, often dictated by suppliers and channel owners deploying approaches that are not consistent across the whole business. The methods used tend to benefit the channel in question rather that reflect the overall impact of marketing across the business.

Evaluating what works

The recent growth in channels has made it increasingly difficult to measure effectively. Customers have more choice of how they interact with your business, in some cases using multiple channels at the same time. This has made it increasingly hard to tease apart what is and isn’t working, and more importantly how multiple interactions are driving the right outcomes.

Decisioning in consumer communication

With the rapid growth in businesses developing a Decisioning capability, it’s now getting even harder to measure the impact of marketing and communication. No longer is it appropriate to put in place campaign control cells, as in many cases we have little idea what the next customer interaction will be.

What are our options in the world of Decisioning?

One thing for certain is that any business considering investing in Decisioning capability should put measurement at the heart of the solution. One of the most valuable outputs of a Decisioning engine should be a very clean contact history. Every interaction needs to be captured and timestamped at a customer level.

Choose your measurement model wisely

The next step is to decide on the best measurement methodologies. Increasingly businesses are looking towards multi-channel attribution as a means of measuring performance. If you go down this route, you need to decide the actual type of model that works effectively. Even then, the model won’t take into consideration above the line marketing.

The 3 types of measurement every business needs

In my view, there are three types of measurement you must have in place to understand the impact of the Decisioning on the business:

  1. A multi-channels attribution model which is configured to measure all direct customer interactions and value them appropriately.
  2. Above-the-line (ATL) media mix models that put a value on all indirect marketing and external factors.
  3. Champion challenger tracking that enables the business to measure the incremental uplift that a specific media type of creative is having verses the current activity.

Through the thoughtful development and deployment of these measurement type, it becomes much more straightforward to understand how each interaction influences a customer’s behaviour. In turn, your business will be able to gain a clear understanding of what is and isn’t working, in what is effectively a very complex system.