# How To Measure Performance of a Campaign

If you are a campaign manager or if you have to manage different campaigns, you have to know how to measure performance of a campaign. You have to know whether your campaign is going well or not. Today, I’ll try to give you a basic idea about the technique of measurement of a campaign. Before going to launch your campaign just do the following scientific things:

1. Determine your desired customers among which you wanted to run your campaign or wanted to launch product

2. Applying science and arts determine take-up ratio. If the take-up ratio is up-to the mark you can go for the next step

3. Using any sampling method break the desired customer group into two groups. One group is target group and another is control group. In the control group you can take 5% to 15% from desired group and rest other customer will be target group. Generally I take minimum 5% or sometimes slightly more. One thing you have to remember that feature or behavior of customers from control group and feature or behavior of customers from target group will be same. So, you have to be very much careful about the selection process. You can read my other articles of random sampling to understand the process.

4. You have to keep in mind that you will not communicate anything to the customers of control group related to your campaign. It would be better if you can separate these customers of control group from other campaigns also. Generally I prefer to do that.

Now you are ready to launch the campaign with the customers of target group. After launching the campaign you are ready to measure your campaign. During campaign period you can keep monitoring the campaign by measuring the performance of your campaign. Let’s see how can we measure the performance of our campaign in a very simple method:

 Customer Category #of Customer #of Offer-Taker %Offer-Taker Target Group (TG) 95,000 20,000 21% Control Group (CG) 5,000 200 4% Total 100,000 20,200 20%

So, incremental offer-taker% will be 21%-4%=17%

Now look into the average revenue of non-offer-taker customers. Let it is = 125.
In the same way look into the average revenue of offer taker during campaign. Let it is = 215
So, incremental revenue per customer from the offer taker of the campaign is = 90

So, incremental revenue from campaign is = 1,534,737
Let’s overall cost for the campaign is = 125,000

So, overall profit from the campaign is = 1,534,737 – 125,000 = 1,409,737

Now, you can say you have earned 1.4 million extra by running the campaign. It is the performance of your campaign.

In this tutorial, I tried to explain how to measure performance of a campaign. Hope you have enjoyed the tutorial. If you want to get updated, like the facebook page https://www.facebook.com/LearningBigDataAnalytics and stay connected.