Second, you’re never exactly sure how much of the non-traceable results to allocate to the housefile and/or to outside names. For example, should the non-traceable results be allocated based on circulation or on some other criteria? By looking at the raw results, you’ll see the individual list results are better than those shown on my report because of the non-traceable factor. This enables you to forecast list results on a more conservative basis.
Of course, you must include a non-traceable factor in the forecast, and I do. I simply prefer not to eliminate the exposure to the amount of non-traceable business you generate by allocating it back across all segments and/or lists.
Determine Promotional Offers to Make
Without source codes, you have no way of knowing how well a particular offer, like free shipping, works to draw customers and/or prospects. So split your mailing into two parts. By doing this, you can make an offer, such as free shipping, versus no offer (the control).
The “A” group is the control—no offer. The “B” group is the offer group. This offer was used to reactivate previous customers and to bring them into a more current recency, frequency and monetary value cell.
The use of source codes makes it possible to know the effect that offering free shipping had on your housefile. (See chart.)
The Non-traceable Factor
You’ll want to try to trace 100 percent of all orders and sales. Based on experience, non-traceable results shouldn’t exceed 20 percent of total orders and revenue. A ratio of 10 percent to 15 percent is even better.
You should be able to trace at least 80 percent of your business to a specific source, and if you can’t, your phone reps aren’t doing a good job getting the codes, or they’re frequently using a default code just to get the order entered into the system, which is not good either.