WO2001048964A2 - System and method for optimizing the performance of email and other message campaigns - Google Patents
System and method for optimizing the performance of email and other message campaigns Download PDFInfo
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- WO2001048964A2 WO2001048964A2 PCT/US2000/035404 US0035404W WO0148964A2 WO 2001048964 A2 WO2001048964 A2 WO 2001048964A2 US 0035404 W US0035404 W US 0035404W WO 0148964 A2 WO0148964 A2 WO 0148964A2
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- G—PHYSICS
- G06—COMPUTING OR CALCULATING; COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q30/00—Commerce
- G06Q30/02—Marketing; Price estimation or determination; Fundraising
Definitions
- Measurable Medium filed 2000, naming Sanjay Ranka et al. as inventors, with
- a prior-art or conventional example of direct-mail advertising is now described.
- the goal of the direct-mail advertising campaign is typically to maximize responses to advertisements for a product A, sent to a population G.
- a typical direct-mail campaign for the product A is divided into two phases: a test campaign and a main campaign.
- an advertiser selects a set of advertisement alternatives for the product and mails them to a sub-population H of the population G.
- the advertisement alternatives number n, while the size of the sub-population H is
- This sub-population H is divided into n groups: HI, H2, . . . , Hn such that
- the advertiser uses the data collected in the test campaign to determine which of the n advertisement alternatives generates the best response.
- the advertisement is in the form of a letter
- the envelope of the letter may be varied n different ways to allow the advertiser to determine which of the n envelopes generates the best response.
- the advertisement alternatives can be described in terms of a set of attributes.
- An "attribute” is an differentiating characteristic of an advertisement alternative.
- the envelope might be described as having two attributes: a first, the color of the envelope, and a second, the design (such as text, graphic, or image) on the envelope.
- the term "level” refers to one of the choices along a given attribute. Assume that the color of the envelope has three levels: pink, white and blue. If there are two different designs that may be used (i.e., the design attribute has two levels), the total number of possible advertisement alternatives is equal to six.
- the advertiser conducts trials (i.e. send out mailings) for each of the advertisement alternatives. Assuming that each of the alternatives is treated independently (i.e. there is no underlying multi-attribute structure), the total number of trials required is proportional to n, the total number of alternatives. However, if the advertisement alternatives can be described by a set of attributes, this underlying structure can be exploited to reduce the number of trials required substantially. For some cases, with a multi-attribute structure, the total number of trials required is proportional to the sum of the levels along each of the attributes. This is generally much smaller than n.
- the advertiser collects the responses for the mailing of the n different advertisement alternatives to the sub-population H and determines which of the advertisement alternatives in the test campaign generated the best response. Let's say advertisement alternative k produces the best response from the subpopulation H. In the main campaign, the advertiser mails to the remaining population (G-H) advertisement alternative k.
- the steps of sending of the advertisements, collecting the responses and determining the best alternative are each executed only once in the test campaign.
- a long delay between the design of the test campaign and the response to the campaign precludes repeating this process multiple times.
- An advertiser desires to accelerate the pace of learning in the test campaign, while simultaneously investigating a broader set of alternatives along the way.
- An advertiser further desires to design a large number of advertisement alternatives with multiple attributes and to test and analyze a campaign in a shorter time period and at a lower cost.
- each message may have a goal which may succeed or fail, and where the characteristics or attributes of a message may be selected to improve the performance of the selected messages or of the messaging campaign overall.
- the message originator desires to accelerate the pace of learning in the test phase of the messaging campaign, while simultaneously investigating a broader set of messaging alternatives along the way.
- a message originator further desires to design a large number of message alternatives with multiple attributes and to test and analyze a messaging campaign in a shorter time period and at a lower cost.
- the marketer provides the apparatus with a list of email or other message alternatives which may have an underlying multi-attribute structure.
- the method includes sending messages, such as emails, for the campaign, for different alternatives in multiple stages. At each stage, the method involves sending messages, such as emails, for a subset of alternatives, collecting response data for these alternatives and analyzing this response data to bias the allocation of messages (emails) to alternatives for the next stage. This process is repeated until a given objective is met or all the messages (emails) for the test campaign are used by the method.
- the number of messages, such as emails, sent out to different alternatives in a given stage may be allocated non-uniformly. Further, the non-uniform allocation may involve concentrating messages (emails) on better-performing alternatives. The total number of messages (emails) sent out in each stage may also be non-uniform.
- the method also allows for sending of messages, such as emails, for a stage before the response data collection is complete for all or a subset of the previous stages.
- a message includes any communication, fact, idea, symbolic representation, or the like, that is communicated.
- Such messages may for example include but are not limited to advertisements for products and/or services, political campaigns, ballot measures and initiatives, media programming, lobbying, surveys, polling, news headlines, sports scores, as well as other directed marketing, promotions, surveys, news, information, other content generally, and the like.
- An email is a particular type of message.
- Figure 2 shows the results for the first stage of a multi-stage campaign.
- Figure 3 A gives the number of emails and the number of responses collected for each alternative during stage 2 of the multi-stage campaign.
- Figure 3B gives the cumulative results up to stage 2 for all the unpruned alternatives (i.e. all the alternatives that are allocated some emails) in the multi-stage campaign.
- Figure 4A gives the results collected in stage 3 of the multi-stage campaign.
- Figure 4B the cumulative results up to stage 3 for the unpiuned alternatives in the multi-stage campaign.
- Figures 5 and 6 present two possible allocations of emails for a two-stage campaign.
- Figure 7 illustrates an optimizing system according to one embodiment of the invention.
- Figure 8 illustrates a test-and-main-campaign strategy according to the prior art.
- Figure 9 is a flowchart illustrating a process for decomposing the learning/optimization process in the multiple stages.
- Figure 10 illustrate sub-steps of the multi-stage process of Figure 9.
- Figure 11 illustrates components of the email server of Figure 7.
- Section headers are provided merely to assist the reader and are not intended to limit the description of the embodiments of the invention or the invention as a whole in any way.
- FIG. 7 is a diagram illustrating an optimizing system 700 according to one embodiment of the invention.
- the optimizing system 700 includes an outbound message or email mailer 710, a message or email-response collector 760, a database of message or email assignments, responses and response statistics 720, an intelligent message or email system 750 and a population P.
- Communications links 730, 770 and 780 connect the database 720 to the outbound mailer 710, the response collector 760 and the email system 750, respectively.
- a communications link 740 connects the population P to the mailer 710 and the response collector 760.
- the email system 750 includes one or more of the following: a central processing unit (“CPU") 751, a memory 752, a user interface 753, a port 755, a communications interface 756 and an internal bus 757.
- CPU central processing unit
- the memory 752 typically includes high-speed, volatile random-access memory (RAM) 7522, as well as non-volatile memory such as read-only memory (ROM) 7521 and mass storage devices such as magnetic-disk drives. Further, the memory 752 typically contains or stores computer program software 7523.
- the software 7523 is layered: Application software 75231 communicates with the operating system 75232, and the operating system 75232 includes an I/O subsystem 75233.
- the I/O subsystem 75233 communicates with the user interface 753 and the communications interface 756 by means of the communications bus 757.
- the port 755 provides access to the user interface 753, including some or all of the following devices common in computer systems: a display 7531, a keyboard
- the communications interface 756 includes at least one input/output port 7561.
- the communication bus 757 communicatively interconnects the CPU
- Any of the outbound message or email mailer 750, response collector 760 and database 720 may of itself be a complete computer system.
- a characteristic of the communications link 740 is that it allows the population P to respond quickly C if not nearly instantaneously C to communications from the email outbound mailer 710.
- Any of the communications links 730, 740, 770, 780 may be an Internet or other network, according to one embodiment.
- the email system 750 is programmed to execute one or more of the methods described herein and in that sense is intelligent.
- a SINGLE-STAGE TEST CAMPAIGN The rapid increase in the number of email users or other electronic messaging users, the low cost of its distribution and the ability to target individual consumers have made email an important medium for advertising and marketing, as well as to other directed or targeted messaging campaigns. Many businesses now readily use email to acquire new customers, build brands, advertise and promote products, measure consumer satisfaction and manage customer relationships.
- a typical email campaign involves sending emails to each address on a list of recipients, the list bought or otherwise acquired from an outside firm or collected internally over a period of time.
- Email alternatives used for marketing or advertising may have several attributes: the subject field, the initial greeting and one or more offers, for example.
- a more general message type may have analogous attributes as well as other attributes.
- Each of these attributes may have multiple levels.
- the product of the number of levels of the attributes is the size of the pool of alternatives.
- Two different alternatives differ from each other by the levels assigned to at least one of attributes. This represents a feasible set of alternatives from which a marketing manager (or other action manager) may seek to find the best alternative to optimize business objectives such as:
- FIG. 8 is a diagram illustrating a test-and-main-campaign strategy according to the prior art, and step 850 illustrates the step of dividing.
- the marketing or other message manager then processes the test campaign list as follows:
- step 810 Generate a list of email alternatives, step 810. • Send multiple emails (to different recipients on the list) for each alternative, step 820.
- step 830 Collect response data for each alternative, step 830. Analyze the data to find the best alternative, step 840.
- the test campaign is used to learn the performance of different email alternatives. Emails for the best alternative (as determined by the test campaign) are then sent to the list for the main campaign. This is similar to the testing phase and main phase of a direct-marketing campaign.
- the steps of sending of the emails, collecting the responses and determining the best alternative are each executed only once in the test campaign — that is, the test campaign is a single stage process.
- This process is herein modified and improved for email-based marketing. These modifications and improvements are possible because a response for an email typically happens in a few hours to a few days. Further, the additional cost of generating emails for a large number of alternatives (as compared to small number of alternatives) is nominal. This allows for a larger number of alternatives to be used for a given cost.
- the methods improve the prior-art single-stage process in any or all of several ways: First, a method parameterizes all email (or other message) alternatives with multiple attributes. Second, a method sends emails (or other messages) for the test campaign in multiple stages. Third, a method combines the optimization of other business processes in conjunction with emails (or other messages). Each of these improvements is discussed in turn below.
- Email or other message alternatives can generally be represented by multiple attributes.
- Example attributes include a subject field, an initial customer greeting, a logo or other picture and product offers. (Each offer typically has a clickthrough or hot-spot area. Clicking on the area is a customer response. Each offer corresponds to a different attribute.)
- the goal is to find an email alternative that has the highest performance for a given business objective. If each alternative is tested independently, the number of emails required is proportional to the total number of alternatives, which can be a very large number.
- Exploiting the multi-attribute structure of the alternatives space can yield methods that require a significantly smaller number of emails to determine the best alternative.
- correlation between the levels of one attribute and the levels of another attribute is negligible. This negligible correlation may allow for reducing the total number of emails required during the test campaign for determining the best alternative.
- the total number of emails, for such special cases, may be proportional to the sum of levels along each of the attributes.
- a method for decomposing the testing process into multiple stages is as follows:
- step 910 Generate emails (or other messages) for each alternative based on the current allocation of email alternatives, step 910.
- the allocation of emails to different alternatives determines the fraction of total emails to be sent out to each alternative.
- step 920 (b) Send emails (or other messages) based on the above step to estimate the performance of each alternative, step 920.
- the biasing allocation includes the steps of collecting performance response data for each different alternative, analyzing the performance response data to estimate the performance of each alternative.
- steps (a), (b) and (c) until the best alternative has been determined, step 940, or there are no more emails (or other messages) available to sent out in the test campaign. Decomposing the testing process into multiple stages allows for learning accrued from a given stage to be used in the generation of the emails (or other message types) in the next stage, thereby optimizing overall learning and/or performance.
- Sub-steps of this multi-stage process may include allocating unequal number of emails to different alternatives, step 923, or allocating unequal number of emails in each stage, step 926.
- Figure 10 illustrates these sub-steps, which are also described in turn below.
- One approach sends a fixed fraction of emails in a test campaign followed by the remaining emails in the main campaign.
- the main goal of the test campaign is to leam the best alternative. This is then used to optimize the responses in the main campaign.
- the inventive method can take advantage of the continuous nature of multi-stage testing and combine the test and main campaigns — i.e., there is only one campaign with multiple stages. The goal is then the maximization of the performance for the entire campaign.
- the inventive method biases the number of emails sent for different alternatives in order to maximize learning, performance or both.
- Investments in terms of sending emails or other message types) are desirably made in the earlier stages on all or most of the alternatives to discover high-performing email alternatives.
- a higher concentration of emails should be sent to better-performing alternatives.
- a marketer or other message manager has to balance this tradeoff to maximize performance for the entire marketing or other messaging campaign.
- the total number of emails to be sent in each stage is set to 900.
- the allocation scheme stops allocating emails to some alternatives and allocates all the emails for a stage equally to all the remaining alternatives.
- Figure 2 shows the results for the first stage. Based on these results, an optimizing system operating according to the invention may conclude that the 5 email alternatives with attribute 1 at level 3 or attribute 2 at level 3 are under-performing. It prunes these 5 alternatives i.e., the system does not allocate any emails to these alternatives (in step 920) for the remaining stages.
- stage 2 the optimizing system allocates the 900 available emails among 4 alternatives. Two hundred twenty five emails are sent with each of these alternatives.
- Figure 3A gives the number of emails sent and the number of responses during stage 2.
- Figure 3B gives the cumulative results up to stage 2 for all the remaining alternatives. Based on these results, the optimizing system may conclude that the email alternatives corresponding to attribute 2 level 2 are under performing and prunes them for the remaining stages.
- Figure 4 A gives the results collected in stage 3, and Figure 4B the cumulative results up to this stage for the unpruned alternatives. Based on these results, the optimizing system may conclude that email alternative with attribute 1 at level 1 and attribute 2 at level 1 is the best.
- This example illustrates the effectiveness of a multi-stage process that biases the allocation of emails or other messages away from poorer-performing alternatives and focuses on better-performing alternatives.
- the performance gains of using a multi-stage method are dependent on the performance variation between the different alternatives. If all the alternatives have similar performance, the improvements may be negligible. However, if the variation is substantial, a multi-stage method will have the opportunity to observe the performance differences between poor- and high- performing alternatives at early stages. This may allow it to bias emails away from the poor-performing alternatives at early stages and hence, improve overall performance.
- the taught method biases the total number of emails in different stages.
- the optimizing system may generate allocations for different alternatives for the next stage before it finishes collecting data on the alternatives for the current stage. Indeed, the optimizing system may generate allocations for the next stage even before it completes sending emails for the current stage.
- Emails are a vehicle for drawing a consumer in to participate in other business processes.
- the optimization of such business processes may be combined with emails or other message types. Examples of other processes where such combination improves decision-making include choosing the splash page (defined below) that acquires the most new customers and setting prices of different products on the web site to optimize revenues, sales or profits. Treating emails as an integral part of the overall process results in better optimization.
- the goal of the marketer is to maximize a business objective such as the total amount of revenue generated.
- One way to achieve this objective is to optimize the two independent (but concurrent) phases:
- a splash-page alternative may generate poor revenue for the mix of visitors from the better email alternatives but may generate very high revenue for visitors from a poor-performing email alternative (in terms of response rate). In a non-integrated process, such splash pages may get a small fraction of total visitors and affect the overall objective negatively.
- the splash-page alternatives may have an underlying multi-attribute structure. Integrated optimization can be achieved by combining the email attributes with the attributes of the splash-page process into a combined attribute space - the total number of attributes will be equal to the sum of the number of attributes for the emails and splash pages, respectively. The total number of alternatives in the combined space is proportional to the product of the number of email alternatives and splash-page alternatives.
- splash pages do not have multiple attributes, the splash pages can be treated as a single attribute in the combined attribute space. The levels of this attribute will correspond to the different splash page alternatives.
- Embodiments of the invention may advantageously be implemented as computer program or programs executing within a processor and/or associated memory in a general purpose computer.
- inventive methods and procedures may be implemented as one or more computer program on a server computer system.
- server computers and the execution of computer programs within such systems are known in the art and not described in detail here.
- the computer program When implemented as a computer program product, the computer program may exist and be communicated over any communication link such as the internet or be stored on a tangible medium such as on magnetic storage medium, optical storage medium, solid state storage medium, or any other form of storage medium.
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Priority Applications (1)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
AU26024/01A AU2602401A (en) | 1999-12-29 | 2000-12-27 | System and method for optimizing the performance of email and other message campaigns |
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Application Number | Priority Date | Filing Date | Title |
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US17368999P | 1999-12-29 | 1999-12-29 | |
US60/173,689 | 1999-12-29 | ||
US58639400A | 2000-06-02 | 2000-06-02 | |
US09/586,394 | 2000-06-02 |
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WO2001048964A2 true WO2001048964A2 (en) | 2001-07-05 |
WO2001048964A3 WO2001048964A3 (en) | 2001-12-13 |
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PCT/US2000/035404 WO2001048964A2 (en) | 1999-12-29 | 2000-12-27 | System and method for optimizing the performance of email and other message campaigns |
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WO (1) | WO2001048964A2 (en) |
Cited By (2)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
CN107526758A (en) * | 2016-10-25 | 2017-12-29 | 腾讯科技(深圳)有限公司 | Message push method and device |
US9911128B2 (en) * | 2007-10-31 | 2018-03-06 | The Rocket Science Group Llc | Systems and methods for determining and sending a preferred of two electronic mail communications |
Family Cites Families (2)
Publication number | Priority date | Publication date | Assignee | Title |
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US6182059B1 (en) * | 1997-04-03 | 2001-01-30 | Brightware, Inc. | Automatic electronic message interpretation and routing system |
US5937037A (en) * | 1998-01-28 | 1999-08-10 | Broadpoint Communications, Inc. | Communications system for delivering promotional messages |
-
2000
- 2000-12-27 WO PCT/US2000/035404 patent/WO2001048964A2/en active Application Filing
- 2000-12-27 AU AU26024/01A patent/AU2602401A/en not_active Abandoned
Cited By (3)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
US9911128B2 (en) * | 2007-10-31 | 2018-03-06 | The Rocket Science Group Llc | Systems and methods for determining and sending a preferred of two electronic mail communications |
CN107526758A (en) * | 2016-10-25 | 2017-12-29 | 腾讯科技(深圳)有限公司 | Message push method and device |
CN107526758B (en) * | 2016-10-25 | 2020-07-28 | 腾讯科技(深圳)有限公司 | Message push method and device |
Also Published As
Publication number | Publication date |
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AU2602401A (en) | 2001-07-09 |
WO2001048964A3 (en) | 2001-12-13 |
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