To determine the incremental revenue, or "lift," generated by Orita Grow, we follow these steps:
To determine the incremental revenue, or "lift," generated by Orita Grow Audiences, we follow these steps:
- Calculate Total Revenue from the Orita Segment: We sum the revenue generated within the 6-day attribution window by the Orita Grow Audience that received emails that week.
- Determine Orita Contribution: We identify the percentage of the Control group that was emailed by your brand during the same period (known as "Brand Coverage"). The Orita Contribution is calculated as 100% minus Brand Coverage. This represents the portion of revenue attributable to Orita Grow Audiences, accounting for customers not already targeted by your existing campaigns.
- Compute Initial Orita Lift: We multiply the Orita Contribution by the Total Revenue from the Orita segment to get the Initial Orita Lift.
- Adjust for Email Influence: We assess the Control group to determine the percentage of revenue generated by customers who received emails (the "Receiver Share"). Since Orita Grow Audiences focuses on email-driven revenue, we adjust the Initial Orita Lift by the Receiver Share to obtain the Final Orita Lift.
Example:
- Total Attributed Revenue: $100,000 over 6 days.
- Brand Coverage: Your brand emailed 90% of the Control/Holdout group.
- Orita Contribution: 100% - 90% = 10%.
- Initial Orita Lift: 10% of $100,000 = $10,000.
- Receiver Share: If 90% of the revenue in the Control/Holdout group came from customers who received emails.
- Final Orita Lift: $10,000 * 90% = $9,000.
Note: This calculation assumes that your brand emails everyone from the Orita Grow Audience (i.e., a compliance rate close to 100%). If that's not the case, we adjust the lift proportionally to account for the actual compliance rate.