Commentary
Three Cheers for the Subscriber
- by Stephanie Miller , December 11, 2007
It was refreshing and inspiring to hear Arend Hendersen, Director of Analytics for third party offer service Q Interactive speak about how their optimization of the subscriber experienced
resulted in higher ROI for both Q and advertisers.
Using LTV rather than the standard open, click and conversion data is actually quite innovative. The response metrics
are used as diagnostics to inform the LTV, but Arend's vision was to optimize the type, number and cadence of messages so that each segment - active, less active, rarely active -- of the database
earned the highest return.
Not only was this a smart, customer centric approach, but it turns out took an enormous amount of corporate fortitude. The first 30-60 days showed
a 20% drop in value to Q (although there were some good measures to point to more promise), so Arend reports he was in a constant sweat for a few weeks. However, his vision was based on sound data
and statistical analytics, so at 120 days the program broke even, and now with more than a year of data, they've improved the return by 30%.
How wonderful to hear about how
focusing on the subscriber earned higher return for the marketer!
