Note: Descriptions are shown in the official language in which they were submitted.
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BUSINESS GROWTH OPTIMIZATION SYSTEM THROUGH DIRECT MAIL COMMUNICATIONS
FIELD OF THE INVENTION
This invention relates generally to a system and process
of performance and profit optimization of a business. More
particularly it relates to a process for business optimization
through relationships enhancement and or motivational messages
by use of Greeting Cards and the like direct mail
communications. It is based upon the hypothesis that profit
maximization can be achieved by measuring and controlling and
optimizing business relationships through judicious use of
cards such as greeting cards, Thank You notes etc.
BACKGROUND:
Although historically the use of greeting cards,
electronic cards (E-Cards), talking cards and postcards has
been limited to personal use, many businesses are now finding
that cards are also a very effective tool to build customer
loyalty and motivate people to take important next steps in
business. Modern business practice recognizes the importance
of customer relationships, customer loyalty and referral
business to grow their business.
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. Received 16 August 2002
This invention empowers a business to implement
customer relationship (including relationships with
employees, stock holders etc) strategies and improve
results in many different situations. The purchasing
decisions of customers/clients are then shifted away from
simple cost versus features analysis of a product or
service, to choosing a supplier on the strength of the
relationship and understanding between the parties
involved.
SUMMARY
In broad terms in one form the invention compris~s a
process for optimising the performance and profits of a
business comprising the steps of establishing a desired end
result: establishing criteria fox mail out: selecting key
data according to said criteria for a mailoutl designing a
mail out piece; executing the mailout~ comparing pre and
post mailout results; and executing all the above Steps for
another DER.
In broad terms in another form the invention comprises
a process for optimizing a business comprising~the steps of
selecting or establishing a desired end result and
concomitant strategy: extracting and analyzing current
relevant key data to identify opportunities, trends and/or
weaknesses] matching said opportunities, trends and/or
weaknesses to said DER strategy(ies) as a means for
improving said analyzed key datal evaluating existing
software (eg accounting, database) capabilities to record,
measure, correlate and analyze required data, and then
tabulate the resultant information into report format(s):
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. _ ~ Received 16 August 2002
selecting and/or setting up and labelling of appropriate
records and/or fields fn the application program to record,
store, tag, import/export and sort the required data for
each said desired end result (DER) mail-out (s) ; designing a
DER communication; sending said DER communication to tagged
individuals, groups) or sub groups) and record
behavioural and transactional results against each record,
group and/or subgroup in the application program after each
DER mail-outs extracting, compiling, calculating and
tabulating data to generate results oriented reports for
each desired end result mail,outi evaluating said reports
generated for each said DER mail-out: and using the
resultant knowledge via a feedback loop to manage that
business.
The present invention is a system and process
including hardware and software for achieving certain
nesired End Results. rt comprises techniques for
collecting, identifying and measuring customer, business
and sales related information, so that a business can
identify opportunities for improvement. Each business then
matches these opportunities to a desired end result (DER)
strategy. Once a DER strategy has been implemented, the
business then records, measures, analyses and tabulates the
xesults to identify the effectiveness of that DER strategy
in achieving the desired end result. This invention
includes correlating, tagging, and analyzing
client/customer/employee transactional and/or behavioural
data for direct mail such as postcards, electronic cards
(cards), talking cards and/or greeting cards. both before
and after each desired end result (riER) strategy is
implemented. The 7 step process is desired in full later.
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PRIOR ART
A prior art search was conducted. Following are typical
examples of the closest U S patent as prior art arranged in
the reverse chronological order for ready reference of the
reader.
07. United States Utility Patent 5,991,735 granted to
Thomas Gerace on November 23, 1999 for "Computer Program
Apparatus for Determining Behavioral Profile of a Computer
User"
06. United States Utility Patent 5,893,075 issued to
Plainfield et al on August 6, 1999 for "Interactive System
and Method for Surveying and Targeting Customers."
05. United States Utility Patent 5,857,175 bestowed upon
Day et al on January 5, 1999 for "System and Method for
Offering Targeted Discounts to Customers."
I 04. United States Utility Patent 5,687,322 published in
the names of Deaton et al on November 11, 1997 for "Method and
System for Selective Incentive Point-of-Sale Marketing in
response to Customer Shopping Histories."
03. United States Utility Patent 5,612,527 presented to
Victor Ovadia on March 18, 1997. for "Discount Offer Redemption
System and Method"
02 . United States Utility Patent 5, 515, 270 earned by Lee
Weinblatt on May 7, 1996 for "Technique for Correlating
Purchasing Behavior of a Consumer to Advertisements"
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Received 16 August 2002
O1. United Stats Utility Patent 9908,761
honorably given to Roland Tai on March 13, 1990 for "System
for Identifying Heavy product Purchasers who Regularly Use
Manutacturer~s Purchase Incentives and Predicting Consumer
Promotional Behavior Response patterns".
OBJECTIVES
Unfortunately none of the prior art devices singly or
in combination provide for all of the objectives as
established by the inventor for this system as enumerated
below.
The stated objectives are of at least preferred
embodiments. It is not intended that every object be
attained by every embodiment of the invention.
O1. ~t is an objective of this invention to provide
methods, devices and system for profit optimization of a
business through relationships enhancement and/or
motivational messages via direct mail communications such
as e-cards, greeting cards, thank you notes, audio-visual
cards etc.
02. Another objective of this invention is to provide
a method for measuring impact on a business before and
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Received 16 August 2002
after the implementation of direct mail communications of
this system.
03. Another objective of this invention is to avoid
sub-optimization.
04. Another objective of this invention is to reduce or
eliminate all non-value added or marginal value added steps so as to
reduce the life cycle coats.
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05. Another objective of this invention is to take the
long term view in implementation of this invention'.
06. Another objective of this invention is to utilize all
types of direct mail communications including but not limited
to postcards, electronic cards (cards), talking cards thank
you cards and/or greeting cards designed to increase trust,
make people feel special and/or motivate people to take next
steps in business.
07. Another objective of this invention is to generate
opportunities, trends and or weaknesses of a business.
08. Another objective of this invention is to match
these identified opportunities, trends andlor weaknesses with
a specific DER strategy( ies ) which have been designed to solve
and/or improve these identified issues.
09. Another objective of this invention is that its
design is simple and even elegant.
10. Another objective of this invention is that its use
is intuitive which requires no further training.
11. Another objective of this invention is that it can
measure and compare the results generated after a specific DER
strategy(ies) has been implemented.
12. Another objective of this invention is to assist
staff within a businesses) prepare management reports)
and/or presentations to management to identify
opportunities, trends and/or weaknesses within a business.
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13. Another objective of this invention is to assist
staff within a businesses) prepare management 'report(s)
and/or presentations to management to identify a strategy
designed to improve these identified criteria and then to
report changes in these criteria after a targeted DER
strategy(ies) has been implemented.
14. Another objective ~of this invention is that it
enhances personal relationships with all types of business
population including customers, clients, prospects, employees,
stock holders, suppliers, distributions, retailers etc.
15. Another objective of this invention is to provide for
a fast response time (almost real time) so as to minimize the
delay between opportunity action and results.
16. Another objective of this invention is that it be
reliable such that it practically never fails and requires
little or no maintenance.
17. Another objective of this invention is that it be
easy to follow with on-line documentation.
18. Another objective of this invention is that it meet
all federal, state, local and other private standards
guidelines, regulations and recommendations with respect to
safety, environment, energy consumption.
19. Another objective of this invention is that the
software component of this system be easily upgrade-able.
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20. Another objective of this invention is that it be
suitable for promotional give aways complete with message of
the sponsor.
21. Another objective of this invention is that it be
capable of multiple concurrent distribution.
22. Another objective of this invention is that it be
suitable for business system profit configuration management.
23. Another objective of this invention is that it can
measure and include the effect of intangibles such as direct
mail communications on the bottom line of a business.
24. Another objective of this invention is to create a
fully customer driven strategy for long term profit
maximization.
25. Other objectives of this invention reside in its
simplicity, elegance of design, ease of manufacture, service
and use and even aesthetics as will become apparent from the
following brief description of the drawings and the detailed
description of the concept embodiment. Prior art embodiments
may also lack the elegance of design of this invention in
terms of compact size, fewer procedural steps.
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BRIEF DESCRIPTION OF THE DRAWINGS
The objects, features and advantages of the present
invention and its application will be more readily
appreciated when read in conjunction with the accompanying
drawing, in which:
a) FIG 1 is a flow diagram of the 7 step process of this
invention. .
b) FIG 2 is a flow chart showing review and analysis of
key data to identify opportunities for mail out in greater
detail.
c) FIG 3 shows interface flow chart from mail out to
DERs.
d) FIG. 4 shows the interface between the mailouts and
the desired end results.
e) FIG. 5 delineates the interface between DER (Desired
End' Result ) , KPI (Key Performance Indicators ) and the results
oriented reports.
f) FIG. 6 shows the essential attributes of a prior art
applications software computer program in order to use
optimize the impact of this invention.
g) FIG. 7 shows the flow-chart for evaluation of prior
art application software (such as accounting, spreadsheet,
customer, management, database) capabilities to record,
measure, correlate and analyze data for results oriented
reports.
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DETAILED DESCRIPTION OF THE BEST MODE PREFERRED EMBODIMENT
As shown in the drawings wherein like numerals represent
like parts throughout the several views, there is generally
disclosed in Figure 1 a 7 step process of this invention which
entails many different criteria within each step which can
potentially be identified and analyzed. Businesses can choose
to apply any parts of this invention to their businesses) as
they feel appropriate and/or beneficial, on a case by case
basis. The seven steps are:
1. A diagnostic analysis of key data. Each business
extracts, reviews and analyses current relevant key data to
identify opportunities, trends and/or weaknesses.
2. Matching opportunities, ,trends and/or weaknesses
(identified in step one) to specifically chosen DER
strategy(ies) designed to improve the data analyzed.
3. Evaluating existing software (eg accounting,
spreadsheet, customer management, database) capabilities to
record, measure, correlate and analyze required data, and then
tabulate this information into report format(s).
4. Selecting and/or setup and label appropriate records
and/or fields in the application program to record, store,
tag, import-export and sort the required data for each desired
end result (DER) mail-out(s).
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.5. Send the DER mail-out to tagged individuals, groups)
or sub groups) and record behavioral- and transactional
results against each record, group and/or subgroup in the
application program after each DER mail-out.
6. Extract, compile, calculate and tabulate data to
generate results oriented reports for each desired end result
(DER) mail-out.
7. Evaluate the reports generated for each DER mail-out
in step six and then use this knowledge to manage that
business(es). The 7 steps may be decreased, increased or
regrouped without deviating from the spirit of the invention.
Over the seven steps identified above, this invention
identifies and targets specific individuals and/or groups of
individuals within a database, for a specific DER mail-out
strategy and then determines the effectiveness of that piece
(or pieces) of DER mail in generating results, including as
compared to other methods. These results can then be compared
to the cost of the mail-out and/or other data (such as before
and after the mail-out) to determine the effectiveness of each
mail-out in achieving the desired end result.
,The process also entails measuring the results generated
after a specific DER strategy(ies) has been implemented and
then comparing these results against:
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. (i) industry benchmarks, and/or
(ii) previous data from that businesses) before a DER
strategy(ies) was implemented, and/or
(iii). data from alternative strategy(ies), and/or
(iv). data from other businesses, and/or
(v) the cost of implementing each DER strategy(ies)
FIG 2 is a flow chart showing review and analysis of
customer data to identify trends and/or opportunities for mail
out in greater detail. FIG 3 shows interface flow chart from
mail out to DERs. FIG. 4 shows the interface between the
mailouts and the desired end results. FIG. 5 delineates the
interface between DER (Desired End Result) , KPI (Key
Performance Indicators) and the results oriented reports.
FIG. 6 shows the essential attributes of a prior art
applications software computer program in order to use
optimize the impact of this invention.
FIG. 7 shows the flow-chart for evaluation of prior art
application software (such as accounting, spreadsheet,
customer management, database) capabilities to record,
measure, correlate and analyze data for results oriented
reports
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.Reference is made to various types of data in this
application. Some of the data types used-in this application
include:
1) Key data (KD) which includes, core basic contact data,
customer data, employee data and business data.
2) Evaluation data (ED)
3) KPI (Key Performance, Indicator) data
4) DER (Desired End Result) data
As stated earlier, greeting cards and postcards are a
great way to nurture customer or client relationships, but
businesses also need to know how effective each mail campaign
is in generating results. This invention provides a method of
business to solve this issue.
STEP ONE
A diagnostic analysis of key data. Each business
extracts, reviews and analyses current relevant key data to
identify opportunities, trends and/or weaknesses. Extraction
of data includes gathering/reviewing said information from
data collecting media and/or sources ( including CD, DVD and/or
computer software) as well as asking people questions to
gather and record said information. Extraction and review of
current key data can include customer related (CR), business
specific (BS), employee related (ER) or core data (CD) as
follows:
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a) Customer related data, such as:
(i) Total annual $ sales made to all customers and/or
groups of customers within the past years) - ($ sales total
before)
(ii) Total annual $ sales made to each customer within
the past years) - ($ individual sales before)
(iii) The total number.of customers (and/or groups of
customers) of each businesses) per annum = (total # customers
bef ore )
(iv) The frequency or number of times sales were made to
each customer by a businesses) within the past years) - (#
sales before)
(v) The average sales $ per customer per annum, being the
($ sales total before) divided by the (total # customers
before), by individual, group and/or sub group = (ave $ sales
before ) .
(vi) The average number of times a customer (and/or
groups of customers) purchases goods and/or services from a
business per annum, being the sum total (# sales before) for
all customers divided by the (total # customers before) in
that sample in that year = (ave # sales before)
,(vii) The number of customers and/or groups of customers
who have not paid their invoice ( s ) in full and/or part thereof
within a specified time frame = (# customers unpaid before)
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(viii) The average number of customers and/or groups of
customers who have not paid their invoices) in full and/or
part thereof within a specified time frame = (ave # customers
unpaid before ) - ( # customers unpaid before ) divided by the
number of customers in that sample.
(ix) The total dollar value of invoices that remain
unpaid in full and/or part thereof within a specified time
frame = ( $ unpaid before )
(x) The percentage of total invoiced customers who have
not paid their invoices) either partially and/or in full
within a specified time frame = (~ customers unpaid before) -
(# customers unpaid before) multiplied by 100 and divided by
(total # customers before)
(xi) The number of customers and/or groups of customers
who, have paid their invoices) in full and/or part thereof
within a specified time frame = (# customers paid before)
( xii ) The percentage of total invoiced customers who have
paid their invoices) either partially and/or in full within
a specified time frame - (~ customers paid before) - (#
customers paid before ) multiplied by 100 and divided by ( total
# customers before)
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.(xiii) The number of days within a specified time frame
that invoiced customers have taken to pay for goods and/or
services which have been invoiced by a business, calculated
from the date each and every invoice was sent to those
invoiced customers through to the date each customer actually
pays for said goods and/or services purchased from that
business. - (# days taken before)
(xiv) The average number of days that invoiced customers,
who have subsequently paid their outstanding invoice(s), have
taken to pay these previously outstanding invoices - (ave #
unpaid days). Calculate this (both by individual and/or by
group ) for a specified time frame, by taking the total ( # days
taken before) for all invoiced customers within a specified
time frame who have subsequently paid their invoice(s),
divided by the number of customers in that sample
(xv) the total number of new customers, prospective
customers and/or entities referred by customers and/or
business associates to a business within the past year = (#
referred before)
(xvi) (# referred new customers before) - the total
number of referred new customers gained by a busines~s(es)
within the past year
(xvii) The total number of customers and/or business
associates who have referred a prospective customer(s),
customers) and/or entities to a business within the past
years) - (# customers who have referred before), and/or
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( xviii ) ( ave ~ customers who refer before ) _ ( # customers
who have referred before) multiplied by 100 and then divided
by [ ( total # customers before ) minus ( # referred new customers
before)] - the percentage of customers and/or business
associates who have referred customers and/or prospective
customers to a business within the past years)
(xix) The sum total number of times per annum that every
customer and/or business associate who has referred a
prospective customers) and/or new customers) to a business
within the past year(s), actually does refer prospective
customers and/or new customers to that business within the
fast years) before any DER mail-out to them - (# times
referred before)
(xx) The average number of times customers who refer new
customers and/or prospective customers to a business each
year, actually do refer those said prospective customers
and/or new customers) over the past year = (# times referred
before ) divided by ( # customers who refer before ) in that same
year = (ave # times referred before)
(xxi). The total $ sales made by a business to referred
new customers and/or entities in the past year = ($ sales to
referred before )
(xxii) (ave $ sales to referrals before) - ($ sales to
referred before) divided by (# referred before).
NOTE: This ratio gives the average dollar value of sales
made to each referred customer within the past years)
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(xxiii) the number of years (or part thereof) that each
customer has continued to purchase goods and/or services from
a business within a specified time frame= (# years loyal
before)
(xxiv) the total number of years (or part thereof) that
every customer has continued to purchase goods and/or services
from a business within a specified time frame = (total # years
loyal before)
(xxv) the average number of years (or part thereof) that
customers have continued to purchase goods and/or services
from a business within a specified time frame = (ave # years
loyal before) - (total # years loyal before) divided by the
total number of customers in that sample
(xxvi) The total number of customer complaints received
annually, differentiated into groups as appropriate for
example the ratio between resolved and unresolved complaints
- (# complaints before and after)'
(xxvii) The current number of sales a business expects to
make to a customer or group of customers) per year = (ENS)
~(xxviii) Total $ sales invoiced by a businesses) within
the past years) - ($ total invoiced before)
(xxix) The total number of invoices issued by a
businesses) within the past years) - (# invoices issued
before )
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,(xxx) The average $ sales per annum, being the ($ total
invoiced before) divided by the (# invoices issued before), by
individual, group and/or sub group - (ave $ sales invoiced
before).
(xxxi) The current gross profit margin per sale = (ave $
sales value invoiced before) less the average $ value of
direct costs attributable toga sale = (MPS)
(xxxii) The current expected number of years (and/or
parts thereof) that a business would expect a customer to
continue purchasing goods and/or services from that business,
based on previous trends and future predictions = (ENY)
(xxxiii) The current lifetime value of a customer -
(LTV) - (MPS) x (ENS) x (ENY) For example, if (MPS) - $10 and
(ENS) - 4 times per year and (ENY) - 3 years, then LTV = $10
x ( 4x3 ) - $120 Note that LTV can also be based an the net
profit margin per sales (instead of gross profit margin per
sales) if a business prefers.
(xxxiv) The total number of customers who had previously
purchased goods and/or services from a business(es), but have
not purchased goods and/or services from that same
businesses) within the past years) - (# not purchased
before )
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. .(xxxv) The average percentage of customers who had
previously purchased goods and/or -services ~ from a
business(es), but have not purchased goods and/or services
from that same businesses) within the past years) - (ave ~
not purchased before) _ (# not purchased before) multiplied by
100 and then divided by (total # customers before) at that
time
(xxxvi) The average number of days it takes for a
prospective customer, who then becomes a customer by
purchasing of goods and/or services from a business, to become
a customer.' First, identify the prospective customers who
subsequently purchased from a business and therefore became
customers. Next, add up the total number of days each one of
these customers took to purchase, from the date of first
contact with the business to the date a sale was made to them.
Then take the sum total of all these days for these customers
to purchase and then divide this'by the number of customers in
that sample, - (ave # days to purchase before).
(xxxvii) The current annual $ sales to customers, who had
previously not purchased goods and/or services from that
business in the year prior, but have now been reactivated
and/or converted into current customers in this year - ($
converted sales)
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.(xxxviii) The percentage of total annual $ sales, which
is attributed to sales made to customers who had previously
not purchased goods and/or services from that business in the
year prior, but have now been reactivated and/or converted
into current customers in the current year - (~ converted
sales). This is calculated by taking ($ converted sales),
multiplied by 100 and then divided by ($ sales total before)
at that time
(xxxix) The annual number of sales to customers, who had
previously not purchased goods and/or services from that
business in the year prior, but have now been reactivated
and/or converted into current customers in this year - (#
converted sales)
(x1) (# converted customers before) = the total number of
new customers in a given time frame who were prospective
customers who had not purchased goods and/or services from a
that business ( es ) within the past year, but have now purchased
goods and/or services from a business
(xli). (~ conversion before) - the percentage of
prospective customers in a given time frame who had not
purchased goods and/or services from a business ( es ) within the
past year, but have subsequently purchase goods and/or
services from a business - (# converted customers before)
multiplied by 100 and then divided by total number of
prospective customers at that time.
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.(xlii) The conversion rate, being the number of
prospective customers (and/or sample number of prospective
customers) who subsequently choose to purchase goods and/or
services from a business, as compared to the total number of
prospective customers approached by a business (in that
sample) - (conversion before)
(xliii) The total number of visitors who visit a website
within a specified time frame before DER #7 mail-outs) - (#
visitors before)
(xliv) The number of times each visitor visits a website
within a specified time frame before DER #7 mail-outs) - (#
times visited before)
(xlv) (total # times visited before) - add up the (#
times visited before DER #7) for all visitors
(xlvi) The average number of times each visitor visits a
website within a specified time frame before DER #7 mail-
outs) - (ave # times visits before) - (total # times visited
before DER #7) divided by (# visitors before DER #7)
(xlvii) The total number of hours and/or parts thereof
that each visitor visits a website within a specified time
frame before DER #7 mail-out(s)= (# hours visited before)
( xlviii ) The average number of hours and/or parts thereof
that a visitor visits a website within a specified time frame
before DER #7 mail-outs) - (ave # hours visited before)
and/or
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(xlix) Other data may also be extracted and calculated to
match specific DERs.For example the quantity and quality of
communications received from a customer through phone, mail,
e-mail, web etc.
and/or
b) Business specific data which inter alia may include:
(i) Expected industry standards for the above customer
related data
(ii) Financial budgets, cash-flow forecasts and
historical financial information determined by a businesses)
(iii) The annual $ spent by a business on advertising,
and the number of new prospects/customers generated by that
advertising, including the sales $ made to new customers
(arising from that advertising) with that business, both
individually and/or as a group~sub group.
(iv) The desired improvement criteria set by a business
based on the above customer related data and business specific
(BS) data.
and/or
c) Employee related data which inter alia may include:
(i) The annual percentage of staff defections, being the
number of staff who have resigned from a businesses) in the
last year multiplied by 100, and then divided by the total
number of staff employed by that business ( es ) ( including those
who have resigned) in that year = (annual ~ staff defections
before)
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.(ii) The average number of years (and/or parts thereof)
that employees remain employed by a business - (ave # years
employees remain before) is an indication of staff loyalty to
that business. This value can be calculated by individual,
group or department as desired. Add up the total number of
years (and/or parts thereof) that all employees in the sample
have remained employed by that businesses) and then divide
this by the total number of employees in that sample
and/or
d) Core data which inter alia may include:
(i) Each individual's name
(ii) The company or business they represent
(iii) Their postal address
(iv) Their E-Mail address
(v) Their contact phone number
(vi) Their contact fax number
(vii) The group or sub group that the individual has been
assigned to (eg high sales dollar value customers versus low
sales dollar value customers)
(viii) The names and/or number of individuals and/or
entities that each customer has referred to a business
(ix) The sales history of each individual, group and/or
sub group, including but not limited to:
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.a) the type of purchases made in the past, and/or
b) the differing needs or areas-of product/service
interest, and/or
c) the dollar value of sales made to each customer within
the past years) - ($ sales total before)
d) the dollar value of sales made to all customers within
the past years) - ($ sales total before)
e) . Each and every reference to individuals or customers
in this invention includes clients and prospective
customers/clients alike.
f ) Any reference made to "mail-outs" includes posted mail
and/or electronic mail (E-Mail).
g) Tag and or tagging = differentiating customers and/or
prospective customers and/or employees (and/or groups of the
same ) which are or have been targeted for a specific DER mail-
out(s), and then labelling those targeted customers and/or
employees and/or prospective customers (and/or groups of the
same) with a code for that DER strategy(ies). Each code must
be separately identified and all records pertaining to that
code must be able to be identified, separated from other
records, compiled, analyzed and exported into report format as
required in steps six and seven.
(h) A prospective customer is any individual and/or
entity(ies) which has never purchased from that particular
businesses) before, but that particular businesses) wants
them to purchase goods and/or services from that business.
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STEP . TWO
The Analysis of data involves reviewing appropriate key
data in step one above, to identify opportunities for
improvement.
This step entails matching opportunities, trends and/or
weaknesses (identified in step one) to specifically chosen DER
strategy(ies) designed to improve the data analyzed.
Each business then matches these identified
opportunities, trends and/or weaknesses identified in stage
one with specific desired end results (DER's ) as defined later
in this application, which are devised to improve each
identified opportunity, trend and/or weakness. Customers,
employees and/or prospective customers within each defined
opportunity, trend and/or weakness are then identified, tagged
and then targeted with a specifically chosen DER mail-out
strategy or strategies.
Each businesses) then selects cards, electronic cards
and/or postcards which it believes will implement the selected
DER strategy(ies).
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STEP THREE
Evaluation of existing software (eg accounting,
spreadsheet, customer management and/or database) capabilities
to record, measure, correlate and analyze required data, and
then tabulate this information into report format(s).
Check that all customer and/or employee information held
within the application program is accurate and includes or can
include and/or calculate relevant:
a) Key data (as described in step one supra)
b) Evaluation data (ED) as specified for each desired
end result (DER). Including before and after mail-outs) ED
required to calculate key performance indicators (KPI's) for
each DER.
c) Key Performance Indicators (KPI's) for each DER
strategy(ies).
Ensure that the application program can, where
appropriate:
a) . Run queries, extract, differentiate, sort and analyze
records by:
(i) Key data (as described in step ONE) and/or
(ii) KPI and ED (Key Performance indicators and
evaluation data as defined for each DER), and/or
b) "Tag" individual records, groups and sub groups within
an application program for the particular DER mail-out ( s ) that
will be or has been sent to them.
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.c) Store, extract, calculate, run queries, differentiate,
sort, correlate and analyze the necessary data (within an
application program) for individual records, groups and sub
groups tagged for each DER strategy.
d) Compile, sort, calculate, analyze and differentiate
data, then generate appropriate ED and/or KPI reports for each
DER mail-out, after each .DER mail-aut(s), showing the
effectiveness of each mail-outs) in achieving the DER for
individuals, groups and sub groups.
e) Compile, sort, calculate, analyze and differentiate
data, then generate key data (as per step ONE) reports,
showing the effectiveness of each mail-out ( s ) in improving CR,
ER, CD and BS data for individuals, groups and sub groups.
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STEP FOUR
Selecting and/or setting up and labeling.appropriate records
and/or fields in the application program to record, store,
tag, sort and/or import-export the required data to/from
another software programs) for each (DER) mail-out including
before and after analysis as required.
a) Sort customers within the application program to
identify and select individuals, groups and sub groups who
will be or have been targeted for a specific DER mail-out
strategy(ies).
b) Can this software store, differentiate, tag, sort and
analyze data by the criteria detailed in Stage Two above?
Yes No Decision Block 330 in Figure 3.
c) Enter (into the application program) the mail-outs)
description against each tagged record, group and sub group
selected for that particular DER mail-out(s).
d) Enter into each tagged record (in the application
program) the date each DER mail-outs) will be or has been
sent to the respectively tagged individuals, groups or sub
groups.
e). Setup and/or label data entry fields for the
Evaluation data (ED as defined in each DER) and Key
Performance indicators (KPI~s as defined under each DER)
relating to each and every tagged individual, group or sub
group within the application program.
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f) Setup and/or label data entry fields for relevant key
data (as described in step ONE) as appropriate.
STEP FIVE
Send the DER mail-out to tagged individuals, groups) or
sub groups) and record behavioral and transactional results
against each record, group and/or subgroup in the application
program after each DER mail-out.
a) Send and/or E-Mail the selected DER mail-out~to the
tagged recipients identified for that DER mail-out(s),
b) Gather, calculate, record, import and/or enter
appropriate post mail-outs) transactional and behavioral data
for each tagged record, group or sub group into the relevant
evaluation data (ED) fields for each DER strategy(ies).
c). Gather, calculate, record, import and/or enter
appropriate post mail-outs) transactional and behavioral data
for each tagged record, group or sub group into the relevant
key data (as described in step ONE) fields for each DER
strategy(ies).
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STEP ' S IX
Extract, compile, calculate and tabulate data to generate
results oriented reports for each desired end result (DER)
mail-out.
a) With reference to the selected DER, extract, compile,
calculate and tabulate ED and/or KPI data, percentages and
ratios relating to tagged customers from the application
program into reports) format as required.
b) Extract, compile, calculate and tabulate key data (as
specified in step, ONE) supra relating to post mail-outs)
transactions and/or behavior into report formats) as
required.
c) Review the reports generated by 1 & 2 above (step 6),
then identify and tabulate key data and findings into new
reports) to highlight change(s), trends and opportunities.
These results can then be compared to previous data and/or
other campaigns to evaluate the effectiveness of each DER
mail-out strategy.
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STEP SEVEN
Evaluate the reports generated for each DER mail-out in step
six and then use this knowledge to manage that business(es).
a) Compare and contrast the results generated after each
DER mail-out(s). Including, but not limited to, comparisons
against:
(i) industry benchmarks; and/or
(ii) previous data and/or calculations from that
businesses) before the DER strategy(ies) was implemented,
and/or
(iii) data from alternative strategy(ies), and/or
(iv) the cost of implementing each DER strategy(ies)
(v) data from other businesses.
b) Generate reports showing the key findings. These
reports can then be used for decision making and/or strategic
direction.
OPERATION
The operation is best understood by the following 7
examples for 7 different DERs, as follows:
1. To increase the number, frequency and/or monetary
value of sales per customer/client or prospective
customer/client per annum, both individually and/or by
group/sub group.
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2 . To encourage customers~clients to pay for goods and/or
services promptly
3. To improve customer/client loyalty and customer/client
retention. Including an improvement in the number of
satisfactory complaint resolutions received from
customers/clients and prospective customers/clients.
4. To increase the number and/or frequency of customers,
prospective customers and/or entities referred by existing
customers and/or business associates to a business. To
increase the number of customers who refer, prospective
customers and/or new customers to a business. Also to
increase the $ value of sales made by a business to referred
customers.
5. To increase the number of prospective customers who
subsequently choose to purchase goods and/or services from a
business.
6. To increase the length of time each employee chooses
to remain employed by a specific businesses) and/or to
decrease the number of employees who choose to resign from
employment with a business(es).
7. To increase the number of visitors to a website,
and/or increase the frequency and/or length of time people
choose to visit~a website.
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EXAMPLE-1
1. Desired End Result #1 . '
To increase the number, frequency and/or monetary value
of sales per customer/client or prospective customer/client
per annum, both individually and/or by group~sub group.
2. Evaluation Data (ED) for DER #1
Separate fields in the application program must exist or
be setup to record, store, sort and/or analyze each of the
following criteria, by individual, group or sub group, as
appropriate.
a) The total number of tagged records selected for this
DER = (total # in DER #I), and/or
b) The absolute number of sales arising within a years)
after the mail-out to tagged customers/clients or tagged
prospective customers/clients = ( # sales after DER #1 ) , and/or
c) The dollar value of sales made' to tagged
customers/clients or tagged prospective customers/clients
within a year ( s ) after the DER #1 mail-out ( s ) to them = ( $
sales after DER #1)
d) The frequency or number of times, sales were made to
tagged customers~clients within a year after a DER mail-out ( s )
to them = (# times sales made after)
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3. Key Performance Indicators (KPI's) for DER #1
KPI's correlate and analyze data in tagged records to
measure the effectiveness of each DER mail-out in achieving
each DER. Such KPI's include but are not limited to:
a) Sorting tagged records into groups and sub groups to
look for patterns of transactional and behavioral trends
relating to and within each group or sub group. For example,
sort all tagged records for DER #1 into groups and/or sub
groups by sales dollar value over the past year ($ sales total
before), to identify and separate high sales dollar value
customers/clients from low sales dollar value
customers~clients. The business then subtracts the ($ sales
total before ) from the ( $ sales after DER #1 ) to identify any
change and the dollar value of that change in sales = ($ sales
change), and/or
b) (Ave $ sales after DER #1) - ($ sales after DER #1)
divided by (total # in DER #1). This gives the average dollar
value of sales per tagged customer/client and/or tagged
prospective customer/client after DER #1 mail-out(s), and/or
c) Take the same size sample of each set of customers,
one group was sent DER #1 mail-out and the other group was not
sent any DER mail-out. Compare the results arising after DER
#1 mail-out to the results before that mail-out (for the same
specified time frame, sample size and comparable
circumstances) as follows:
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_(i) (~ change in # sales after DER #1) - (# sales after
DER #1) minus (# sales before), then multiplied by 100 and
then divided by (# sales before). This will give the
percentage increase or decrease in the number of sales made to
tagged individuals, groups or sub-groups after DER #l, and/or
(ii) (~ $ sales change) - ($ sales change) multiplied by
100 and then divided by ($ sales total before). This will
give the percentage increase or decrease in the dollar value
of sales to tagged individuals, group and sub groups after. DER
#1 mail-outs) as compared to before DER #1 mail-out, and/or
(iii) (~ change times) - [(# times sales made after)
minus (# sales before)] multiplied by 100 and then divided by
(# sales before).
This is the percentage change in the number of times per
annum that a tagged customer purchases goods and/or services
from a business after a DER mail-out, and/or
d) ($ sales change per $ spent) - ($ sales change)
divided by the dollar cost of DER #1 mail-out, shows the $
sales change per $ spent on DER #1 mail-out.
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EXAMPLE-2
1. Desired End Result #2 . ' '
To encourage customers/clients to pay for goods and/or
services promptly
2. Evaluation Data (ED) for DER #2
Separate fields in the application program must exist or
be setup to record, store, sort, identify and/or analyze each
of the following criteria and/or results after DER #2, by
individual, group or sub group, as appropriate.
a) The total number of tagged records selected for DER #2
- (total # in DER #2), and/or
b) The absolute number of invoices unpaid within a
specific time frame after the mail-out to tagged
customers/clients = (# invoices unpaid after DER #2), and/or
c) The absolute number of invoices paid within a specific
time frame after the mail-out to tagged customers/clients = ( #
invoices paid after DER #2), and/or
d) The dollar value of unpaid invoices relating to each
tagged individual, sub group and group after the DER #2 mail-
outs) that remain unpaid in full within a specified time
frame after due date - ($ unpaid invoices after DER #2),
and/or
e) The dollar value of payments received from tagged
customers within a specified time frame after the DER #2 mail-
out(s) - ($ paid invoices after DER #2), and/or
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f) The absolute number of customers who have paid some
and/or all of their previously unpaid- invoices within a
specified time frame after DER #2 mail-out = (# paid after DER
#2), and/or
g) The number of customers or groups of customers who
have not paid their invoices) in full and within a specified
time frame after DER #2 mail-outs) - (# customers unpaid
after DER #2), and/or
h ) The total number of days after DER #2 mail-out ( s ) that
tagged customers have taken to pay in full for goods and/or
services purchased from a business, calculated from the date
the business first charges and/or invoices each customer to
the date each customer actually pays in full for said goods
and/or services purchased from that business = (total # days
taken after DER #2)
i) The number of days after DER #2 mail-outs) that
tagged customers have taken to pay for goods and/or services
which they purchased from a business, calculated from the date
DER #2 mail-outs) was sent to those tagged customers through
to the date each customer actually pays (in full) for said
goods and/or services purchased from that business = (# days
taken after DER #2)
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3. Key Performance Indicators (KPI's) for DER #2
KPI's correlate and analyze data in tagged records to
measure the effectiveness of each DER mail-out in achieving
each DER. Such KPI's are calculated separately for
individuals, groups) and sub groups) on criteria and/or
results after DER #2 and include but are not limited to:
a) Sorting tagged records into groups and sub groups to
look for patterns of transactional and behavioral trends
relating to and within each group or sub group. For example,
sort all tagged records for DER #2 by historical sales dollar
value, to identify and separate high sales dollar value
customers/clients from low sales dollar value
customers~clients. The business can then count the number of
records within each group and/or sub group and identify which
groups) or sub groups) has a higher number of unpaid
invoices, and/or
b) Take the same size sample of each set of customers,
one group was sent DER #2 mail-out and the other group was not
sent any DER mail-out. Compare the results arising after DER
#2 mail-out to the results before that mail-out (for the same
specified time frame, sample size and comparable
circumstances) as follows:
( i ) The average number of days that tagged ,customers , who
have subsequently paid their outstanding invoices) after DER
#2 mail-out ( s ) , have taken to pay these previously outstanding
invoices =.(ave # unpaid days after).
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Calculate this (both by individual and/or by group), by
taking the total (# days taken after DER~ #2) for all tagged
customers who have subsequently paid their invoices, divided
by the number of customers in that sample, and/or
(ii) The average total number of days after DER #2 mail-
out(s) that tagged customers have taken to pay goods and/or
services from the date of invoice to the date that payment was
received in full = ( ave total # unpaid days after ) . Calculate
this (both by individual and by group), by taking (total #
days taken after DER #2) divided by (total # in DER #2),
and/or
(iii) The percentage of tagged customers who have paid
their invoice ( s ) within a specified time frame after DER mail-
out #2 = ( ~ customers paid) _ ( # paid after DER #2 ) multiplied
by 100 and then divided by (.total # in DER #2), and/or
(iv) The percentage change in the number of customers or
groups of customers who have not paid their invoice ( s ) in full
within a specified time frame after DER #2 - (# customers
unpaid after DER #2) minus (# customers unpaid before); then
multiply this number by 100 and divide by (# customers unpaid
before) - (~ change in # unpaid customers), and/or
(v). The percentage change in the total dollar value of
invoices that remain unpaid in full within a specified time
frame after DER #2 - (~ change in unpaid $) - ($ unpaid
invoices after DER #2) minus ($ unpaid before), then
multiplied by 100 and divided by ($ unpaid before), and/or
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c) ($ received per $ cost of DER #2) - ($ paid invoices
after DER #2) divided by the $ cost of DER #2 mail-out, will
identify the $ value of invoices paid after DER #2 mail-out,
per $ cost of DER #2 mail-out, and/or
d) (# paid per # sent DER #2) - (# paid after DER #2)
divided by ( total # in DER #2 ) , identifies the ratio of tagged
customers who have paid some and/or all of their outstanding
invoices within a specified time frame after DER #2 mail-out,
relative to the number of tagged customers who were sent DER
#2 mail-out.
EXAMPLE - 3
1. Desired End Result #3
To improve customer/client loyalty and customer/client
retention. Including an improvement in the number of
satisfactory complaint resolutions received from
customers/clients and prospective customers/clients.
2. Evaluation Data (ED) for DER #3
Separate fields in the application program must exist or
be setup to record, store, sort, identify andjor analyze each
of the following criteria as appropriate, by individual, group
or sub group.
a) The total number of tagged records selected for DER #3
- (total # in DER #3), and/or
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.b) The total number of tagged customers who gave
favorable feedback after DER #3 mail-out was sent to them =
(total # favorable), and/or
c) The total number of tagged customers who gave
unfavorable feedback after DER #3 mail-out was sent to them =
(total # unfavorable), and/or
d). The dollar value o~f sales made to tagged customers
within a years) after the DER #3 mail-outs) to them - ($
sales after DER #3), and/or
e) the sum total number of sales made to all tagged
customers within a years) after DER #3 mail-out was sent to
them = (# sales after DER #3) , and/or
f) The number of years that tagged customers continue to
purchase goods and/or services from a business after that
business has sent them any DER mail-outs) - (# years loyal
after )
g) The total number of tagged customers who have
purchased goods and/or services from a business within a
years) after a DER mail-out to them = (# purchased after)
h) ($ cost to get a sale) - total $ cost of DER #3 mail-
out divided~by (# sales after DER #3) - the $ cost of DER #3
mail-out to get one sale
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3. Key Performance Indicators (KPI's) for DER #3
KPI's correlate and analyze data in tagged records to
measure the effectiveness of each DER mail-out in achieving
each DER. Such KPI's are calculated separately for
individuals, groups) and/or sub groups) and include but are
not limited to:
a) (~ favorable after ~DER #3) - (total # favorable)
multiplied by 100 and then divided by (total # in DER #3 ) ,
will give the percentage of tagged customers who reacted
favorably to DER #3 mail-out, and/or
b) (~ unfavorable after DER #3) - (total # unfavorable)
multiplied by 100 and then divided by (total # in DER #3),
will give the percentage of tagged customers who reacted
unfavorably to DER #3 mail-out, and/or
c ) ( $ sales per tagged customer in DER #3 ) - ( $ sales
after DER #3) divided by (total # in DER #3). This gives the
average dollar value of sales made per tagged customers after
DER #3 mail-out(s), and/or
d) Take the same size sample of each set of customers,
one group was sent DER #3 mail-out and the other group was not
sent any DER mail-out. Compare the results arising after DER
3 mail-out to the results before that mail-outs) (for the
same specif ied~ time frame, sample size and comparable
circumstances) as follows:
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( i ) ( $ sales $ change after DER #3 ) _ ( $ sales after DER
#3) minus ($ sales total before) then multiplied by 100 and
then divided by ($ sales total before). This will give the
percentage increase or decrease in the dollar value of sales
made to tagged customers after DER #3 mail-outs) as compared
to before DER #3 mail-out(s), and/or
(ii) (~ change in # sales after DER #3) - (# sales after
DER # 3 mail-out) minus (# sales before), then multiplied by
100 and then divided by (# sales before). This will give the
annual percentage increase or decrease in the number of sales
made to tagged customers within a year after DER #3 mail-out.
e) Calculate the lifetime value of a customer (LTV as
described in Stage One) after DER #3 including the components
of LTV, for the same size sample of customers, both before and
after DER mail-outs. Then compare the results.
f) (~ purchased after DER #3) - (# purchased after)
multiplied by 100 and then divided by ( total # in DER #3 ) ,
gives the percentage of tagged customers who subsequently
purchased from a business within a year after DER #3 was sent
to them.
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EXAMPLE -4
1. Desired End Result #4 . '
To increase the number and/or frequency of customers,
prospective customers and/or entities referred by existing
customers and/or business associates to a business and/or
To increase the number of customers who refer prospective
customers and/or new customers to a business. Also to
increase the $ value of sales made by a business to referred
customers.
2 Evaluation Data (ED) for DER #4
Separate fields in the application program must exist or
be setup to record, store, sort and/or analyze each of the
following criteria, by individual, group and/or sub group, as
appropriate.
a) The total number of tagged records selected for this
DER = (total # in DER #4), and/or
b) The absolute number of customers, prospective
customers and/or business associate(s)/entities referred by
tagged customers and/or business associates to a business
within a years) after DER #4 mail-out was sent to those
tagged customers and/or business associates - (# referred
after DER #4), and/or
c) The dollar value of sales made to referred customers
within a years) after the DER #4 mail-outs) was made to
tagged customers and/or business associates - ($ referred
sales after DER #4), and/or
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d) The sum total number of times per annum that every
tagged customer and/or business associate has referred a
prospective customers) and/or new customers) and/or
business associate ( s ) to a business within a year ( s ) after DER
#4 mail-outs) was sent to those tagged individuals and/or
entities = (# times referred after DER #4), and/or
e) The number of tagged customers and/or business
associates who have referred a prospective customer(s),
customers) and/or business associates) or entities to a
busines s within a year ( s ) after DER #4 mail-out ( s ) to them= ( #
customers who have referred after DER #4), and/or
f). The sum total number of days that have passed after
DER #4 mail-out ( s ) before each tagged customer and/or busines s
associate, who has subsequently referred a prospective
customer(s), business associates) customers) and or
entity(ies) to a business within a year after DER #4 mail-out,
actually, gives that business the contact details for said
prospective customers) and/or business associates) and/or
customer(s)/entity(ies). The number of days taken by each
tagged customer is calculated from the date the business first
sends DER #4 mail-out to them, to the date that tagged
customer gives that business the contact details for a
referred prospective customers) and/or customers) and/or
business associate(s), - (# days to refer)
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3 Key Performance Indicators (KPI's) for DER #4
KPI's correlate and analyze data in tagged records to
measure the effectiveness of each DER mail-out in achieving
each DER. Such KPI's include but are not limited to:
a) Sorting tagged records into groups and sub groups to
look for patterns of referral andlor behavioral trends
relating to and within each group or sub group. For example,
sort all tagged records for DER #4 by historical sales dollar
value ($ sales total before), to identify and separate high
sales dollar value customers/clients from low sales dollar
value customers/clients. The business can compare the ($
sales to referrals after DER #4 mail-out) for each group or
sub group, to identify the dollar value and group or sub group
that has generated the most referred business, and/or
b) (Ave # referrals after DER #4) _ (# referred after DER
#4) divided by (total # in DER #4) = The average number of new
customers and/or prospective customers referred to a business
by tagged customers and/or business associates within a year
of DER #4 being sent to said tagged customers and/or business
associates
c) (Ave o customers who refer after DER #4) - (#
customers who have referred after DER #4), multiplied by 100
& divided by (total # in DER #4) - the percentage of tagged
customers &/or business associates who have referred customers
and/or prospective customers &~or business associates(s) to a
business within a year of DER #4 mail-out(s).
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.d) Take the same size sample of each set of prospective
customers and/or customers, &/or busine.ss associates) one
group was sent DER #4 mail-out and the other group was not
sent any DER mail-out. Compare the results arising after DER
#4 mail-out to the results without any DER mail-out (for the
same specified time frame, sample size and comparable
circumstances) as follows:
(i) (% change in # referrals after DER #4) - (ave #
referrals after DER #4) minus (ave # referrals before), then
multiplied by 100 and then divided by (ave # referrals
before). This will give the percentage change in the average
number of referred customers and/or referred prospective
customers &/or referred business associates per annum after
DER #4 mail-outs) as compared to before DER #4 mail-out,
and/or
(ii) (ave % change in # customers who refer) - (ave %
customers who refer after DER #4) minus (ave % customers who
refer before), then multiply by 100 and divide by (ave %
customers who refer before) = the average percentage increase
or decrease in number of customers &/or business associates)
who refer new customers and/or prospective customers &/or
business associates to a business within a year after DER #4
mail-out, and/or
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(iii) (~ change in # times referred) _ (# times referred
after DER #4 ) minus ( # times referred before ) , then multiplied
by 100 and divided by (# times referred before), gives the
annual percentage change in the number of times customers
and/or business associates have referred prospective customers
and/or new customers &/or business associates to a business
after DER #4 mail-out
e) (Ave $ sales to referrals after DER #4) _ ($ referred
sales after DER #4) divided by (# referred after DER #4).
This ratio gives the average dollar value of sales made to
each referred customer and/or business associates within a
years) after DER #4 mail-out(s), and/or
f) ($ referred sales per $ cost of DER #4) - ($ referred
sales after DER #4 ) divided by the dollar cost of DER #4 mail-
out = the dollar value of sales generated by referral business
within a years) after DER #4 mail-out(s), per $ cost of DER
#4 mail-out, and/or
g) The average number of days taken for tagged customers,
who have referred a customer ( s ) and/or prospective customer ( s )
and.or business associates) to that businesses) within a
years) after DER#4 mail-out(s), to actually give the contact
details for the referred prospective customers) and/or
customers) to that business = (ave # days to refer after DER
#4) - (# days to refer) divided by (# customers who have
referred after DER #4) and/or
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.h) ($ cost to get a referral) - total $ cost of DER #4
mail-out divided by (# referred after DER #4) - the $ cost of
DER #4 mail-out to get one referred customer and/or referred
prospective customer and/or referred business associates for
that business.
EXAMPLE - 5
1. Desired End Result #5
To increase the number of prospective customers who
subsequently choose to purchase goods and/or services from a
business. This includes but is not limited to:
(i) reactivating existing prospective customers,
customers and/or Entities who have not purchased and/or
contacted a business within the past year, and/or
(ii) converting new prospective customers into customers
more often and/or more quickly
2. Evaluation Data (ED) for DER #5
Separate fields in the application program must exist or
be setup to record, store, sort and/or analyze each of the
following criteria, by individual, group or sub group, as
appropriate.
a) The total number of tagged records selected for this
DER = (total # in DER #5), and/or
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b) The absolute number of sales made to tagged
prospective customers/clients within a year after~the mail-
out was sent to said tagged customers/clients = (# sales after
DER #5), and/or
c) The dollar value of sales made to . tagged
customers/clients and/or tagged prospective customers/clients
within a year ( s ) after the DER #5 mail-out ( s ) was sent to them
- ($ sales after DER #5)
d) The number of days taken by each and/or every tagged
customer and/or prospective customer to purchase goods and/or
services from a business after DER #5 mail-out to them = (#
days prospects take after DER #5). Calculate this by
identifying those tagged recipients who subsequently purchased
goods and/or, services after DER #5 mail-out, and then
calculate the total number of days between the date DER #5
mail-out was sent to each of these tagged customers and/or
tagged prospective customers to the date a sale was made to
each of these tagged customers and/or prospective customers.
3 Key Performance Indicators (KPI's) for DER #5
KPI's correlate and analyze data in tagged records to
measure the effectiveness of each DER mail-out in achieving
each DER. Such~KPI's include but are not limited to:
a ) ( ave $ sales after DER #5 ) - ( $ sales after DER #5
mail-out) divided by (total # in DER #5 mail-out) - the
average dollar value of sales per tagged prospective customer
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b) Take sample groups of prospective customers and/or
customers, one group was sent DER #5 mail-out and~the other
group was not sent any DER mail-out. Compare the results
arising after DER #5 mail-out to the results without any DER
mail-out (for the same specified time frame, sample size and
comparable circumstances) as follows:
(i) (# converted customers after DER #5) - the total
number of tagged customers and/or prospective customers who
subsequently purchase goods and/or services from a business
within a years) after DER #5 mail-out was sent to them
(ii) (~ conversion after DER #5) -. the percentage of
tagged prospective customers &/or customers who subsequently
purchased goods~services from a business within a period after
DER # 5 mailout(s), begin (# converted customers after DER #
5) multiplied by 100 and divided by (Total # in DER # 5)
(iii) Compare ($ sales after DER #5) with ($ sales total
before) to identify and measure any change in sales $ after
DER #5 mailout ( s ) . This shows the effectiveness of DER # 5
mailout(s) in converting or reactivating customers within a
period of DER # 5 mailout in terms of the change in sales $
generated.
(iv) The annual percentage of in sales $ attributed to
tagged customers and/or prospective customers within a year
after DER #5 mail-out - ($ change in annual sales $) - ($
sales after DER #5) multiplied by 100 and then divided the
total annual $ sales to all customers.
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. .(v) The percentage of annual $ sales made to tagged
customers and/or prospective customers who have previously not
purchased goods and/or services from that business in the year
prior, but have now been reactivated and/or converted into
current customers in the years) after DER #5 mail-out was
sent to them= (new ~ converted sales).
This can be calculated by multiplying ($ sales after DER
# 5 ) by 100 & dividing by the total annual $ sales at that
time.
(vi) The annual number of sales to customers, who had
previously not purchased goods and/or services from that
business in the year prior, but have now been reactivated
and/or converted into current customers in the year,after DER
#5 mail-out was sent to them = (new # converted sales)
(vii) The percentage of the annual number of sales made
to customers, who had previously not purchased goods and/or
services from that business within a years) before DER #5
mail-out(s), but have now been reactivated and/or converted
into current customers in the year after DER #5 mail-out was
sent to them - (new ~ change in converted sales). To
calculate this, multiply (new # converted sales) by 100 and
then divide by (# converted sales).
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(viii) The average number of days it takes for a
prospective customer, who then becomes a customer by
purchasing of goods and/or services from a business, to become
a customer after DER #5 mail-out - (new ave # days to
purchase). First, identify a sample number of prospective
customers who subsequently purchased from a business after DER
#5 mail-out and therefore became customers. Next, add up the
total number of days each one of these customers took to
purchase, from the date of first contact with the business to
the date a sale was made to them.
Then take the sum total of all these days for these
customers to purchase and then divide this by the number of
customers in that sample. Compare this to before any DER
mail-out (ave # days to purchase).
(ix) (~ change in # days) = the percentage change in the
number of days it takes for a prospective customer to purchase
goods and/or services from a business after DER #5 = (new ave
# days to purchase) minus (ave # days to purchase), then
multiply this number by 100 and divide by (ave # days to
purchase)
c. ($ sales per $ spent on DER #5) - ($ sales after DER
#5 mail-out) divided by the dollar cost of DER #5 mail-out,
will identify the $ value of sales made to tagged individuals,
groups and/or sub groups after DER #5 mail-out, relative to
the $ cost of DER #5 mail-out,, and/or
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.d. (ave # sales per converted customer) - (new #
converted sales) divided by (# converted~customers~after DER
#5) - the number of sales made to each converted customer
within a years) after DER #5 mail-out to them.
EXAMPLE -6
1. Desired End Result #6
To increase the length of time each employee chooses to
remain employed by a specific businesses) and/or to decrease
the number of employees who choose to resign from employment
with a business(es).
2. Evaluation Data (ED) for DER #6
Separate fields in the application program must exist or
be setup to record, store, sort and/or analyze each of the
following criteria, by individual, group or sub group, as
appropriate.
a) The total number of tagged records selected for this
DER = (total # in DER #6), and/or
b) The annual number of staff defections after DER #6
mail-out, being the number of staff who have resigned from a
businesses) within a years) of DER #6 mail-out being sent to
them, divided by the total number of staff employed by that
business ( es ) ( including those who have resigned) in that year,
- (new annual # staff defections), and/or
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,c) The average number of years (and/or parts thereof)
that employees remain employed by a business after DER #6
mail-out to them = (new ave # years employees remain) is an
indication of staff loyalty to that business.
To calculate this value, add up the total number of years
(and/or parts thereof) that all employees in the sample have
remained employed by that business (es ) and then divide this by
the total number of employees in that sample.
3 Key Performance Indicators (KPI's) for DER #6
KPI's correlate and analyze data in tagged records to
measure the effectiveness of each DER mail-out in achieving
each DER. Such KPI's include but are not limited to:
a) Take the same size sample of each set of employees or
previous employees, one group was sent DER #6 mail-out and the
other group was not sent any DER mail-out. Compare the
results arising after DER #6 mail-out to the results without
any DER mail-out (for the same specified time frame, sample
size and comparable circumstances) as follows:
(i) (new annual # staff defections) versus (annual #
staff defections)
(ii) (new ave # years employees remain) versus (ave #
years employees remain)
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.(iii) (new annual # staff defections] minus (annual #
staff defections), multiplied by 100 and then divided by
(annual # staff defections), will show the percentage change
in defections after DER #6 mail-outs) as compared to before
any DER mail-outs) - (~ change in staff defections).
(iv) (~ change per $ spent on DER #6) - (~ change in
staff defections) divided by~the total dollar cost of DER~#6
mail-outs) = the percentage of change in staff defections per
$ spent on DER #6 mail-out(s).
(v) (new ave # years employees remain) minus (ave # years
employees remain), multiplied by I00 and then divided by (ave
# years employees remain), will show the percentage change in
the number of years) or parts thereof that employees choose
to remain employed with that businesses) after DER #6 mail-
out(s) compared to before any DER mail-out = (~ change in ave
years employed).
Compare (~ change in ave years employed) to the $ cost of
DER #6 mail-outs) to show the average percentage improvement
for money spent on DER #6 mail-out.
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EXAMPLE - 7
1. Desired End Result # 7
To increase the number of visitors to a website, and/or
increase the frequency and/or length of time people choose to
visit a website. Also to increase the number, frequency and/or
value of sales made to website visitors either off and/or on
line to the Internet.
1. Evaluation Data (ED) for DER #7
Separate fields in the application program must exist or
be setup to record, store, sort and/or analyze each of the
following criteria, by individual, group or sub group, both
before and after DER #7 mail-out as appropriate.
a) The total number of tagged records selected for this
DER = (total # in DER #7)
. b) The total number of visitors who visit a website
within a specified time frame after DER #7 mail-outs) - (#
visitors after DER #7)
c) The number of times each visitor visits a website
within a specified time frame after DER #7 mail-outs) - (#
times visited after DER #7)
d) (total # times visited after DER #7) - add up the (#
times visited after DER #7) for all visitors
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e) The average number of times each visitor visits a
website within a specified time frame after DER #7 mail-out ( s )
- (ave # times visits after DER #7) - (total # times visited
after DER #7) divided by (# visitors after DER #7)
f). The total number of hours and/or parts thereof that
each visitor visits a website within a specified time frame
after DER #7 mail-out(s)= (#~hours visited after DER #7)
g) The total number of hours and/or parts thereof that
every visitor visits a~website within a specified time frame
after DER #7 mail-outs) - (total # hours visited after DER
#7)
h) The average number of hours and/or parts thereof that
a visitor visits a website within a specified time frame after
DER #7 mail-outs) - (ave # hours visited after DER #7) -
(total # hours visited after DER #7) divided by (# visitors
after DER #7)
(i) The total $ sales made to tagged customers within a
specified time frame after DER #7 = ($ sales after DER #7)
( j ) . (Ave $ sales after DER. #7 ) _ ( $ sales after DER #7 )
divided by the number of customers who have purchased goods
and/or services from a business within a specified time frame
after DER #7
k) The total # sales made to tagged customers within a
specified time frame after DER # 7 mailout = (# sales after
DER # 7 )
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VARIATIONS
The inventor has given a non-limiting description of the
concept. Various modifications and combinations of the
illustrative embodiments as well as other embodiments of the
invention will be apparent to a person of average skill in the
art upon reference to this description.
Due to the simplicity and elegance of the design of this
invention designing around it is very difficult if not
impossible. Nonetheless many changes may be made to this
design without deviating from the spirit of this invention.
Examples of such contemplated variations include the
following:
1. The software algorithm may be modified without
substantial impact on the end result.
2. Additional complimentary and complementary functions
and features may be added.
3. The number of steps may be increased, decreased,
renumbered or regrouped without deviating from the spirit of
this invention.
4. The program may be converted into other programming
languages.
5. The program may be automated and integrated with other
programs.
6. Packaging colors, materials, shapes and design may be
changed without deviating from the spirit of this invention.
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7. Obvious and even some non-obvious enhancements may be
made without deviating from the spirit of this invention.
8. The invention may be adapted for other related uses
for example optimizing the operations of a non-profit
organization.
9. Complementary functions and affects may be added.
I0. Other changes such as aesthetic and substitution of
newer materials as they become available which substantially
perform the same function in substantially the same manner
with substantially the same result without deviating from the
spirit of this invention may be made.
Following is a listing of the components and procedural
steps used in this embodiment arranged in ascending order of
the reference numerals for ready reference of the reader.
100 - The process and system of this invention
generally.
110 - Key data analysis
120 - Matching opportunities with DERs
130 - Evaluation of prior art software
140 - Flagging or tagging subset of the records.
150 - Mail-out to tagged parties
160 - Prepare results oriented reports for each DER
170 - Evaluation of the reports for changes
180 - Feedback loop
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200 - Review and analysis of customer data to
identify opportunities for. mail-outs~generally
210 - Review and analysis of customer data in the
prior art application program used by a
business enterprise.
220 - Identification of DERs for mailout
230 - Identification and design of the mailout to
tagged population in the software.
300 - Mailout DER Interface flow-chart generally
310 - Record selection and tagging in application
software
320 - Tagging operation for a specific DER
330 - Threshold Decision step to ascertain whether
the software can store, differentiate,
tag~flag, sort and analyze data about selected
population.
340 - Tagging and/or flagging of all intended
recipients of a particular mailout
350 - Enter or export core data into prior art
application program
360 - Entry of mail out description into the prior
art application program
370 - Entry into each tagged record of the prior art
application program, the date each DER mailout
will be or has been sent
380 - Evaluation of data
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400 - Interface between the mailouts and the desired
end results generally
410 - Posting of the DER mailout to tagged population
420 - Import of transactional and behavioral data for
each tagged record into the relevant evaluation
fields.
430 - Calculation step including recording 'of
evaluation data for each DER mailout
500 - Interface between DER (Desired End Result) ,
KPI (Key Performance Indicators) and the
results oriented reports.
510 - KPI ( Key Performance Indicator ) Data including
calculation or extraction thereof
520 - Calculation of percentages and ratios of KPI
530 - Tabulate KPI data into results oriented reports
600 - Essential attributes of a software application
generally
610 - Mapping of KPI and DER evaluation data against
core data about customers or other population of employees,
stockholders, suppliers etc.
620 - Tagging flagging of records for a specif is
mailout for a specific DER.
630 - Analysis of data
640 - KPI reports for each mailout
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700 - Evaluation of prior art application software
(such as accounting, spreadsheet, database) capabilities to
record, measure, correlate and analyze data for results
oriented reports generally
710 - Mail out including selection and/or design of
720 - Basic core data for various populations
722 - Employee data'
724 - Business data
726 - Customer data
730 - Evaluation Data
740 - KPI data
750 - Results Oriented Reports
DEFINITIONS
While exacting care has been taken to avoid terms of art
and use words with their conventional dictionary meaning
the following definitions are included for clarification of
the specification and its interpretation.
CD = Core data relating to each individual, group or sub
group within a customer base or other population base.
DER - Desired end result.
DIY - Do It yourself
ED - Evaluation data required for each DER mail-out.
Interface - Matching or two or more dissimilar entities
however realized
OEM - Original Equipment Manufacturer
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..
' while this iiiventiori has been described with reference to
, ,
illustrative embod~.ments,..this.. descri tnon :is ;riot ihtended
. ~ ~ . p , to
u~ ' ~ , ~ " ~ ' av "
r., :=
s-
:-~be =.con t "uei3v.~~ n . '
i a',_limitin ' sense °~Varzou's .modi:fications~ andv:'..
y , j, . ~ ~ ~ g _~, ' , ~ . _~, a
'~- . _ ~,
~ e'
'combinations vof the''illustrat'ive~'embod'iinerits jas'~well ~as 'other ,~
. , :,. ,
embodiinerits . of the invention' will ='.be a '~ ~ arent.o -.a ~,. erson '
. , PP ; P. .
skilled in th'e art upon reference to this ~descriptioi~. It is
therefore contemplated that the appended claims will cover .any
such modifications, embodiments as fall within the true scope
of the invention.
64
SUBSTITUTE SHEET (RULE 26)
