A response model is usually the first type of targeting model that a company seeks to develop. A response model can provide a huge boost to the efficiency of a marketing campaign by increasing responses and/or reducing campaign expenses.
The goal is to predict who will be responsive to an offer for a product or service. It can be based on past behaviour of a similar population or some logical substitute. A response can be received in several ways, depending on the offer channel. A mail offer can direct the responder to reply by mail, phone, or Internet. When compiling the results, it is important to monitor the response channel and manage duplicates. It is not unusual for a responder to mail a response and then respond by phone or Internet a few days later. There are even situations in which a company may receive more than one mail response from the same person. This is especially common if a prospect receives multiple or follow-up offers for the same product or service that are spaced several weeks apart.
It is important to establish some rules for dealing with multiple responses in model development. A phone offer has the benefit of instant results. A response can be measured instantly. But a nonresponse can be the result of several actions: The prospect said “no,” or the prospect did not answer, or the phone number was incorrect.
Many companies are combining channels in an effort to improve service and save money. The Internet is an excellent channel for providing information and customer service. In the past, a direct mail offer had to contain all the information about the product or service. This mail piece could end up being quite expensive. Now, many companies are using a postcard or an inexpensive mail piece to direct people to a Web site. Once the customer is on the Web site, the company has a variety of available options to market products or services at a fraction of the cost of direct mail.