When talking about Blue Sheep’s Money Map, we write a lot about customer insight, Pareto’s Principle and making effective use of your marketing budget. But what do you really know about the Money Map report itself and, more importantly, what it can tell you?
As the first of a two-part blog, we explain the basics of a Money Map, and how the report allows you to assess the current strengths and weaknesses of your marketing and sales, evaluate how you have been spending your budget, and realise a template to stimulate more successful marketing in the future.
What is a Money Map?
The Money Map provides a unique way to look at your customers and your marketing, allowing a business to more strategically target potential customers with more engaging marketing activities.
Its primary objective is to highlight the low value customers you could be unwittingly squandering large sums of money on, as well as helping you single out the customers where marketing budgets could be invested in order to yield better results or more sustainable returns.
A Money Map divides your customer and prospect base into eight primary segments. The revenues they generate over a fixed period are measured, which are compared against a comprehensive view of the UK workplace market (the Blue Sheep UK Business Universe) to learn:
- The number of accounts and prospects in each segment
- Your share of the market
- The revenue streams achieved from each segment
- The future potential in each segment
By classifying the results into a Money Map, it allows Blue Sheep to identify four primary customers:
- Your ‘Treasure’ accounts – those who are most profitable
- ‘Marketing Development’ accounts – high spending customers but with low marketing penetration and difficult to convert
- ‘Sales Promotion’ accounts – low spending customers but easy to acquire and good market penetration
- ‘Avoids’ – low profit, low revenue customers with a high cost to serve
How is Money Map customer data prepared?
Before a Money Map report can be created, the data files supplied need to undergo several stages of processing to enhance it.
- All company records are de-duplicated at workplace and workplace contact level, leaving a unique record that can be passed forwards for matching.
- Data records are matched to the UKBU and CAMEO customer databases. This allows the data to be segmented into business and consumer categories for the appropriate analysis.
- Matching to the UKBU allows any variable held to be updated onto your data file, improving accuracy and completeness of information. Such enhancements can include contact details, group turnover, credit scores and more.
- Data can be passed through a number of suppressions, including gone away files, bereavement registers and TPS, CTPS, MPS and FPS records to make the data fit for marketing purposes and to conform to data protection best practices.
How are the results of a Money Map visualised?
A Money Map report categorises a multivariate analysis of your customer against the UKBU into one of four customer segments, based on:
- Market Penetration Factor (MPF)
- Revenue Factor Analysis (RFA)
These four classifications can be further broken down into smaller groups, based on:
- High growth
- Low growth
These results can be visualised as a 2x2x2 cube, using a growth potential model, which is then flattened into a grid of information for each of the eight segments.
Each of the multivariate points can also be plotted on a Boston matrix, to show their distribution within four quadrants, which represent the four key customer types.
This visual representation of your customers and the UK market give an accessible representation of how to pinpoint the customers with the most potential for profit, as well as those who are clearly draining your resources. However, there is much more to learn in a full analysis report, which really lets you dig into the data…
Find more of your most profitable prospects with a FREE customer insight report!
Join some of our customers who have used a Blue Sheep Money Map to:
- Improve response rates by 100% and boost average order value by 300%
- Increase sales by 11% and grow profits by 30%
- Deliver an ROI of £37 for every £1 of marketing spend