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Frequently Asked Questions

Question 1 What is Incremental Response?

Question 2. It's all about ROI when choosing a channel or is it?

Question 3. What is Cruise Control?

Question 4. What can I do to improve my marketing starting today?

Question 5. Why do I need to market to existing customers? I need more customers.



1. What is  Incremental Response?

When you execute a mailing campaign, KeyMotive will randomly select a group of customers to "hold out" from the mailing (i.e. not mail to). These are customers who would otherwise qualify for the mailing, but for accurate campaign results we exclude them from the mailing campaign.

The purpose of doing this is to compare the behavior of the "hold out" panel to the panel of customers who were mailed to; the difference of both of these groups is what we consider Incremental response (and that is the only part of the response that we take credit for).  

You would be surprised how many marketing identities like to report Gross Responses as campaign results.  While it does look impressive it is not providing the Insight and Knowledge you need to take positive action.

We know that there is a certain percentage of your customers who will come in regardless of whether you do a campaign at all. By contrasting the response of the mailed group vs. the "control" group, we're able to truly analyze the effectiveness of your campaign.

Consider the following table:
Pieces Mailed (aka "Mail Panel")1,000
Responses from Mail Panel280
Response Rate for Mail Panel28%« 280 ÷ 1,000
Pieces held out / Not Mailed (aka "Control Panel")200
Responses from Control Panel40
Response Rate for Control Panel20%« 40 ÷ 200
Incremental Response Rate8%« 28% minus 20%
Incremental Invoices 22.4« Inc Resp Rate * Responses from Mail Panel




2. It's all about ROI when choosing a channel or is it?

Insight says - take a look at your goals and balance it against short term inflated campaign ROI numbers.  If your goal is to retain customers while maintaining a healthy ROI then channel performance has to be a factor.

While certain channels have lower cost and therefore potentially higher ROI there is a caveat: Customer Counts.  If the Customer Counts are greater with a higher cost channel, while it might not produce the same campaign ROI as the lower cost channel it is driving more customers to your location and more money to the bottom line.

Higher Customer Retention is more cost effective in the long run and if the ROI is still good then it's a win-win situation.
Couple that with a program like "Cruise Control" that learns your customers idiosyncrasies and you can increase that retention even further.


3. What is Cruise Control?
Stay focused on your Customer's while we adapt and adjust your marketing to optimize Retention and Acquisition, cross-selling tires and always watching your reputation. Like all good speed controls how fast you want to get there is set by you - most KeyMotive products are CruiseControl eligible.



4. What can I do to improve my marketing starting today?
Call KeyMotive of course!
Accurate Data. Put an emphasis on using your POS to its fullest potential and stress the importance of quality entries into the system. With your front desk focusing on making sure addresses are entered correctly - both postal and email.

No matter who you use for marketing, accurate data will improve your campaign results by ensuring that you can reach all your customers with appropriate service reminders and additional service offerings.




5. Why do I need to market to existing customers? I need more customers.
Retention and Growth!
Customer retention in the Tire and Automotive Service Industry is paramount to growth. Overcoming competitors, customers moving out of your service area etc. is a challenge to every business. Helping your customers with programs that bring attention to their vehicles needs in a market where everyone and everything is competing for your customer's attention is no simple task.

Finding programs that will help you retain and grow customer counts while allowing you to focus on providing excellent customer service gives you the ability to increase customer value - to expand that 'best customer' segment.