Applying a PPS Halo Effect To Understand Where To Double Down Budget for Acquisition
What is the Halo Effect?
We’ve all felt it in some way or another – traditional methods of figuring out where to spend your marketing budget is, in lack of better terms, f’ing daunting. But what if there was a way to get a clearer picture of how all your marketing channels influence a customer’s decision to buy?
Voila! Something we like to call the Halo Effect —a strategy that allows you to measure the true impact of each channel, even when customers don’t directly mention it. We’re going to dive into applying PPS halo effect to double down budget for acquisition.
Applying the Halo Effect to Post-Purchase Surveys
The PPS halo effect is a way to see the bigger picture of your marketing efforts. Think of it like this: while a customer might tell you they heard about your product from a friend, the truth is they might have also seen your ads on Instagram, received an email from you, and read a blog post on your website.
The PPS Halo Effect helps you understand how allllllll of these pieces fit together.
Gauging Effectiveness and Maximizing Marketing Impact
First, it’s important to figure out which of your marketing channels are really pulling their weight so you know where to double down. For example, if you’re investing in TV commercials, ask your customers if they’ve seen them to gauge their impact compared to other paid methods.
Now, let’s dive into our secret weapon: the Halo Effect. We’ve built this “modeling” into our tool. Here’s how it works: we take the survey response rate and extrapolate it to 100%. So, with a 50% response rate, you’d double the responses to get a full picture.
On average, 45% of people who see our surveys respond to the first question, and 85% complete the survey. To see the real revenue impact, project the response rate to 100%. For instance, if you get 5,000 responses and $50,000 in revenue from TV at a 50% response rate, double it to reflect 10,000 responses and $100,000 in revenue. We also consider order values, because a $1,000 order and a $1 order aren’t the same.
By combining insights from PPS, you can enhance your loyalty and mobile channels. We help you grow these channels and make them more effective with our unique insights. For example, if someone loves to travel, you can personalize mobile app recommendations to show them your travel collection, creating dynamic content that resonates with them.
A Beauty Brand’s Insights & Key Findings
We recently dove into insights from one of our beauty brand partners where we can see the halo effect in action – On their post purchase survey, they start by asking customers, “Before you go, how did you first hear about us?” Whether through platforms like Facebook, Instagram, TikTok, Pinterest, etc. They follow up and ask, “Have you also seen our TV commercial?”
Here’s what they discovered:
- Initially, 12.4% of customers recalled encountering the brand through TV.
- However, a remarkable 27% overall recalled seeing the TV commercial, even though their first interaction was elsewhere.
By incorporating this question, the brand can not only gauge awareness but also unveil the true impact of TV ads, allowing them to analyze the effectiveness of their investment in TV advertising and quantify the responses influenced or “haloed” by it.
Understanding which channels drive both direct and indirect conversions, you can allocate your budget more wisely, ensuring your money goes where it counts.