UNDERSTANDING LIFEVALUE INTERACTION
Two-way interaction in this approach is divided into two parts: the contact and the response. Most marketing interactions can be understood as an initiating contact by one party that results in a reaction or response by the receiving party. Interaction must also be understood by channel mix (looking at all channels used for contact) and channel match (the match between the individual's channel preferences and the communication channels used for the contact). The result is behavior (response or non-response) and bonding – the subjective effect the contact or interaction has on the relationship. Both the behavioral variables and the intervening variables can be quantified.
BEHAVIORAL MEASURES:
The first outcome of each contact or series of contacts can be measured by behavior (response or non-response). An individual's behavior is a very important discriminator – the closer the past behavior is to the behavior that is being predicted, the more powerful the discrimination becomes.
Before LifeValue Behavior principles were applied, financial transactions were about the only data stored for donors and customers. With LifeValue Behavior a customer or donor relationship is no longer seen simply as a series of financial transactions.
Every channel has a contribution to make and contributes more insight into the interaction process. In the online world behavior is rich and varied. A contact by email can be opened or not opened, the link in the email can result in a click-through or be ignored. The click-through to a microsite or landing page may result in a variety of other behaviors.
Behavioral databases alone can be huge and are very important in the evaluation of both constituents and marketing events. By storing all relevant behavioral data, the specific behaviors which are LifeValue Predictors can be observed and understood.
BONDING MEASURES:
The second outcome of each contact or series of contacts can be measured by its subjective effect on the relationship which is described in LifeValue Marketing as bonding. The longer the chain of interaction the more important the bonding side of the equation becomes. Bonding includes a variety of intervening variables – a matrix of personal history, needs, perceptions, emotions, identifications and associations which can be an important determinates of future behavior.
