Monday, January 21st, 2013 | Leave a Comment

Who are your (best) customers?

By Phil Catalano, Director of Integrated Marketing

 

Taxes, tolls, postage costs and everything else seems to all be pointing in one similar direction… UP! As the costs to do business also continue to be on the rise this puts tremendous pressure on budgets.  In the world of marketing, marketers are becoming more and more pressured to be accountable for their marketing spend.  Some are rolling out campaigns and then measuring the return on investment or the cost per lead or acquisition.  But sometimes by the time they are measuring that ROI the damage can already be done.

 

As budgets get tighter, marketers need to take a deeper look at their marketing offers and customer base. Who are your customers and what is their propensity to respond to your marketing offers?  The answer to this is a Profile / Model.

 

The benefits of a Profile / Model are leveraging techniques to identify how your data looks both demographically and also by lifestyle. By mining hidden attributes of your data, you can uncover patterns or characteristics that can be used in different marketing touch points. Predictive modeling can create targeted prospect universes that can identify who on your list will have the highest propensity to respond to a marketing campaign.  These can be broken down into deciles, with the top 10% likely to respond to fall into the first decile and so on.  By building a profile off your house list you can then have the power to build a prospect model for future acquisition efforts.  By identifying the demographics of your top 10% of customers, you then have the power behind you to go out and find “look-alikes” from a universe of data out there.

 

Modeling & profiling is a smart solution to narrowly target the right prospects for the right campaign and present them with the right offer resulting in a higher ROI and lower cost per lead and acquisition.

 

When utilizing modeling / profiling as part of your overall strategy before launching a campaign, you can net some great results that will make every dollar in your budget work for you!



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