When I first started in direct marketing we were taught that the drivers of response were targeting, the offer, and how well you execute. Testing showed that targeting accounted for about 60% of response value, the offer 30%, and how well you executed only 10%.
Over three decades I’ve used this thinking and validated the approximations. There is no doubt that how well you target is most important. This is true in DM, print, radio, TV, digital, and social. It’s also why the ability to use data to improve the knowledge you have about your consumer, and the ability to target them is so valuable. It’s what makes people-based marketing so powerful. And it’s why data science is one of the fastest and hottest fields in communications.
How attractive you’re able to make your offer, and the relevance and value it has to your target, is the next biggest response driver. All of the targeting in the world will not make up for a poor offer and to advertise without a competitive offer is a waste of money.
And then there’s execution. This is probably under-rated at only 10% and probably the wrong word for it. I think we’re better off referring to this as creativity. And here is why creativity is much more valuable than 10% of the response value. We operate in extremely competitive and connected marketplaces. Offers can be copied. Targeting can be matched. This means creativity is your only differentiator and therefore the most critical part of communications.