One of the greatest success factors within CRM is to perform tests and base your work on insights instead of gut feelings. Therefore, we recommend you to use control groups to analyze the outcome of your work - every single time.

There are two types of control groups in Voyado; traditional control groups used to follow up specific campaigns and Master control groups used to measure your CRM work over time. In this article, we will go through them both.

Control groups

A quick and easy way to follow up the effect of a specific message.

A control group is a randomly selected group(%) of contacts from the original recipients group that won't receive the message you are about to send out. The purpose is to measure the effect of your communication by comparing the conversion between those who received the message with those who didn't.

Voyado calculates the effect by analyzing if your recipients makes a purchase but doesn't take in to consideration what kind of products they buy. This is because your communication can trigger recipients to make a purchase, but they might not buy the products you promote in your message.

After the message has been sent, Voyado will start to collect data and present sales statistics for your recipients in comparison to the contacts in your control group. Wait a couple of days before analyzing the effect of your message. Be patient and give your recipients a reasonable amount of time to shop before you draw any conclusions. 

The size of your control group will have a big impact on the effect measurement. Our number one tip is; don't work with too small groups. Small groups are more likely to result in extreme outcomes and a few large purchases can have a drastic impact on the calculation and will not reflect the truth. Our recommendation is that the control group constitutes 10% of the recipients, or at the most 5,000 email addresses/phone numbers.

Analyzing the effect

As mentioned above, your control group can be used as a reference group to measure the effect of your message. You can compare effect data for:

  1. Anyone that received the message vs. The control group (SMS+email)
  2. Anyone that has opened the message vs. The control group (email)
  3. Anyone that has clicked on a link in the message vs. The control group (email)

You can filter data based on time (1-6 days/1-4 weeks/1 month) and choose if you want to compare all sales, sales in physical stores or online sales.

KPI Main group Control group
Number of contacts Total number of contacts that received the message Total number of contacts in the control group
Made a purchase

Total number of contacts that made at least one purchase during the selected time period (a.k.a respondents)

Total number of contacts that made at least one purchase during the selected time period (a.k.a respondents)

Conversion rate

The percentage of recipients that made at least one purchase during the selected time period (Respondents/Total number of contacts)

The percentage of contacts in the control group that made at
least one purchase during the selected time period (Respondents/Total number of contacts)

Purchases per converted customer

The average number of receipts for recipients that made a purchase during the selected time period (Total number of receipts/Respondents)

The average number of receipts for contacts in the control group
that made a purchase during the selected time period (Total number of receipts/Respondents)

Average receipt

The average receipt sum for recipients that made a purchase during the selected time period, in your currency (Total sales/Total number of purchases)

The average receipt sum for contacts in the control group that
made a purchase during the selected time period, in your currency (Total sales/Total number of purchases)

Total sales The recipient group's total purchase sum during the selected time period, in your currency The control group's total purchase sum during the selected time period, in your currency

If the result is considered statistically significant (has at least 90% in probability), you will be presented with an estimate on how much money your message has generated in comparison to if it wouldn't have been sent out at all. Voyado will extrapolate the results for your control group to be able to compare the total sales figures between the two groups. 

image__18_.png

You can easily find contacts that where included in a control group for a specific email or SMS message using the segmentation criteria "In control group for message..." with the option "Sent/Draft/Scheduled".

Master control group

A great way to measure the general effect of your communication.

A Master control group (MCG) is an established tool used to measure the effect of your marketing activities over a longer period of time. The Master control group is a cross-section of your contact database that will be excluded from all commercial communication sent from Voyado for a specific time period (normally 6 months). Customers within the Master control group will still receive transactional communication e.g. communication regarding rewards or orders.

Please note that a contact can only be included in a Master control group once.

To get valuable insights, the size of your Master control group is of great importance. You can only have one active Master control group at the time and our recommendation is that the Master control group constitutes 5,000 contacts.

Analyzing the effect

When a Master control group is activated in Voyado, it appears as a field on contact profiles which means that it is available in segmentation and in exports.

For analysis in Voyado, your Master control group should be saved as a Target audience. Your target audiences are available in all Voyado reports so you can analyze how your Master control group is behaving in comparison to your overall contact database (that is constantly receiving marketing communication from you). This will help you to gain insights about the value of your commercial communication from a larger perspective.

Use the reports that you can filter on specific time periods e.g. "Best customers" to analyze overall performance and "Purchase reports" for insights about specific buying behaviors.

You can easily find contacts that are currently in your Master control group using the criteria "Master control group" with the option "Yes/No" (exists in/doesn't exist in).

If you are interested in activating a Master Control group, please contact your Client Manager.

Was this article helpful?
0 out of 0 found this helpful

Comments

0 comments

Please sign in to leave a comment.