Segmenting and analyzing market data

• US 20050010477A1
• Filed: 07/01/2004
• Published: 01/13/2005
• Est. Priority Date: 07/01/2003
• Status: Abandoned Application

• Current Assignee: Blackbaud Incorporated
• Original Assignee: Blackbaud Incorporated
• Inventors: Sullivan, Shaun Michael, Gibson, Paul D., Mishkin, Lawrence Paul, Holder, John David, Sarosy, Andrew Stephen
• Application Number:
  US10/883,231
• Publication Number:
  US 20050010477A1
• Time in Patent Office: Days
• US Class Current: 705/14.130
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 50/12 Hotels or restaurants

Abstract

A method of optimizing direct marketing campaigns to a pool of potential donors, comprising defining a plurality of segments, wherein each potential donor is a member of no more than one respective segment, defining and associating a respective package with each segment wherein each package is indicative of the material to be sent to members of the respective segment, activating or fixing in time a first segmentation comprised of one or more of the segments, sending the respective package to members of the respective segments, thereafter associating responses with respective segments in a computer database, calculating a response rate and an average gift amount for each respective segment, and creating a new, optimized segmentation based on the responses obtained from the first segmentation. Another method includes means for ranking segments in a hierarchical fashion and optimizing projected return on investment based on an optimized segment hierarchy.

Claims

1. A method of optimizing direct marketing campaigns to pools of potential donors, information about the potential donors stored in a first computer database, comprising the steps of:

defining a plurality of segments for a first direct marketing campaign, wherein each potential donor is a member of no more than one respective segment;

defining and associating a respective package with each segment, each package indicative of the material to be sent to members of the respective segment;

fixing in time a first segmentation comprised of one or more of the segments, information about the first segmentation stored in a second computer database;

sending the respective package to members of the respective segments included in the first segmentation;

associating responses from the members of the respective segments included in the first segmentation with the information about the first segmentation;

based on the responses, calculating a response rate and an average gift amount for each respective segment included in the first segmentation; and

creating a second segmentation comprised of one or more segments included in the first segmentation, each segment in the second segmentation having an expected response rate and an estimated gift amount based on the response rate and the average gift amount for each corresponding segment from the first segmentation.

2. The method of claim 1 wherein the first and second computer databases are the same.

3. The method of claim 1 wherein the first and second computer databases are different.

4. The method of claim 1 wherein the respective package is sent to all members of the respective segment included in the first segmentation.

5. The method of claim 1 further comprising associating a plurality of respective packages with at least one segment.

6. The method of claim 1 wherein the respective package is sent to a subset of members of the respective segments included in the first segmentation.

7. The method of claim 1 wherein each package identifies an envelope type and its contents, and has a cost associated therewith.

8. The method of claim 7 further comprising identifying a total cost associated with the first segmentation based on the costs associated with the packages sent in the first segmentation.

9. The method of claim 7 further comprising identifying a cost for each segment of the first segmentation based on the costs associated with the packages sent to each respective segment of the first segmentation.

10. The method of claim 9 further comprising calculating a rate of return associated with the first segmentation based on a comparison of the costs for each segment and a total gift amount received from each segment.

11. The method of claim 10 further comprising calculating an expected rate of return on the second segmentation based on the rate of return for the first segmentation.

12. The method of claim 9 further comprising calculating a rate of return associated with each respective package of the first segmentation based on a comparison of the costs for each respective package, the number of each respective package sent, and a total gift amount received from members who received each respective package.

13. The method of claim 12 further comprising calculating an expected rate of return on the second segmentation based on the rate of return for the first segmentation.

14. The method of claim 1 further comprising, based on the responses, calculating a total amount given by each respective segment included in the first segmentation.

15. The method of claim 14 further comprising calculating an expected total amount for the second segmentation based on the total amount given in the first segmentation..

16. The method of claim 1 further comprising, based on the responses, calculating a response rate and an average gift amount for each package included in the first segmentation.

17. In a direct marketing campaign system aimed at a pool of potential donors, wherein information about the potential donors is stored in a computer database and wherein a plurality of segments are defined for the direct marketing campaign, a method comprising the steps of:

(a) arranging the plurality of segments into more than one hierarchy;

(b) for each respective hierarchy, assigning each potential donor from the computer database to no more than one respective segment of the respective hierarchy wherein assignment to one of the respective segments is based on the highest segment of the respective hierarchy for which the potential donor qualifies;

(c) calculating an expected return on investment for the campaign for each respective hierarchy;

(d) selecting the hierarchy with the highest expected return on investment as the optimized hierarchy; and

(e) activating a segmentation for the direct marketing campaign having the plurality of segments arranged according to the optimized hierarchy.

18. The method of claim 17 wherein each segment has a respective expected response rate and expected average donation amount, wherein a respective package to be sent to each potential donor is defined and associated with each respective segment, wherein each package has a cost associated therewith, and wherein the direct marketing campaign has a budget, and wherein the step of calculating an expected return on investment for the campaign includes calculating:

(i) the number of potential donors in each respective segment;

(ii) the cost of packaging associated with each respective segment based on the cost of the package associated with the respective segment and the number of potential donors assigned thereto;

(iii) the number of expected responses from each respective segment based on the expected response rate and the number of potential donors in each respective segment;

(iv) a total expected gift amount for each respective segment based on the number of expected responses and the expected average donation amount for the respective segment; and

(v) the return on investment for each respective segment based on the total expected gift amount and the cost of packaging associated with each respective segment in the segmentation.

19. The method of claim 17 wherein step (b) further comprises storing the assignment of each potential donor to the respective segment in temporary computer memory for faster processing of step (c).

20. The method of claim 17 wherein each segment in each respective hierarchy is defined by a specific criteria and an exclusion of the specific criteria for each higher ranked segment in the respective hierarchy for faster processing of step (c).