5. Use targeted models more aggressively. The most effective way to cut spending is to stop mailing to folks who are not likely to respond. Use active and passive control groups to identify segments and treatments that are not likely to yield the desired results, and focus on the most likely responders. Don't skimp on champion/challenger testing—in the long run it can save you more money than any other technique. Skimping on test cells is penny-wise and pound-foolish. In almost every instance where Quaero clients have resisted setting up control groups, they have regretted that choice on the back end when trying to measure the true effectiveness of a campaign or when they need to justify the cost of the next campaign.
Naras V. Eechambadi, Ph.D., is senior vice president and general manager of Charlotte, N.C.-based Quaero, a CSG Systems company. He can be reached at (704) 414-0200.
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