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Thursday, September 11, 2014

Six Steps to Track Results and Prove ROI for Preference Management

A five-part series about the implementation of preference management

By limiting the scope of the original preference management project, enterprises can simplify metrics and create powerful business cases for additional investment and expansion. In many instances, preference management is initially introduced as an opt-down initiative designed to convert opt-outs to targeted opt-ins. Within 90 days of full implementation, opt-down initiatives have been shown to convert opt-outs to targeted opt-ins by more than 60 percent.

Simple steps for tracking and ROI demonstration include:

  1. A clearly outlined initial implementation. As cited previously in the example of the financial software company, limitation of original scope and clear benchmarking (converting opt-outs to targeted opt-ins) is essential. 
  2. A reasonable timetable for results. In concert with the implementation team, create a realistic timetable to manage internal expectations and allow the program enough room to demonstrate value. 
  3. A detailed “before” picture. Prior to launching the program, assess the current state of affairs and define what is being collected, where it is stored, how many are opting out, etc. 
  4. Once the program is in place, check in frequently to assess results and course -correct. In many instances, the challenge of serving as preference management "champion" inside an enterprise is one of connecting departments that wouldn’t otherwise share information. An internal advocate may be a necessary linchpin required to keep the project on track. 
  5. Translate preference collection to bottom-line value. In other words, assess the opportunity cost of an opt-out and, in turn, create a value for a targeted opt-in. Without a bottom-line layer to reporting, ROI may be misunderstood. 
  6. Don’t just explain the difference. If given the opportunity, demonstrate the future. Presentations that marry results with before-and-after screen shots featuring opt-down functionality and preference center designs help decision-makers see the bigger picture and embrace the effort.   

The solution to preference management implementation is breaking it down into a series of actionable steps. Prepare for success, select a targeted introduction point, expand gradually, centralize data, track results and prove ROI. For enterprises seeking the enormous marketing and risk mitigation rewards that come from listening to and learning from consumers, it is an essential step.

About the Author: 
Eric V. Holtzclaw is  Chief Strategist  of PossibleNOW. He's a researcher, writer, serial entrepreneur and challenger-of-conventional wisdom. His book with Wiley Publishing on consumer behavior - Laddering: Unlocking the Potential of Consumer Behavior - hit bookstores last summer. Eric helps strategically guide companies with the implementation of enterprise-wide preference management solutions.

Follow me on Twitter: @eholtzclaw | Connect on LinkedIn: Eric Holtzclaw

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