How Store Distance Affects ROI Measurement
Given what retail direct marketers observe in their results analyses, why not set up a test? Create three test panels, with the first panel receiving catalogs, the second panel receiving postcards and the third panel “held out,” not receiving anything. Assuming that the three test groups are equally populated with good and marginal customers, subsegment the test panels by store distance. Measure the results of your test, and identify the best strategy to employ to different customers based on distance from a store.