Interested in learning more about segmentation, modeling and measurement? Our white papers are technical documents intended for the non-technical reader who wants to learn more about specific marketing science methods.
A Survey of Behavioral Segmentation Methods
There is no magic rule or formula for deciding how to classify customers into a smaller number of homogeneous groups or ‘segments’. But, there are rules of thought and popular methods that set the Marketing Scientist on the right path.
How to Measure Campaign Impact
Marketers are often left without adequate insight into the performance of their marketing efforts to help them make good decisions for future campaigns. This paper illustrates, with simple-to-understand language, how to measure the incremental impact of a marketing promotion.
Measurement When Data Isn’t Clean
Unforeseen circumstances can influence a time-series making it difficult to measure the impact of a marketing promotion. This paper presents three real-life case studies where additional steps had to be taken to ‘purify’ data prior to measuring campaign impact.
Customer Propensity Models Explained
Marketers use propensity models to optimize the performance of special promotions. Written in conversational style, this paper takes the mystery out of predictive modeling for non-technical analysts and managers who seek more information on an otherwise very technical topic.
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- Retail
- RETAIL. A controlled experiment highlights the effectiveness of ‘different strokes for different folks’—incentive thresholds by segment and the revenue potential of a recapture strategy not previously considered.
- Insurance
- INSURANCE. Demographic and psychographic data appended to purchased prospects can be used to predict a prospect’s likelihood to purchase insurance and be low-risk—making it possible to maximize marketing ROI.
- Catalogs
- CATALOGS. A controlled experiment to optimize catalog timing and frequency revealed the importance of mailing early and often to the most valuable customer segment, the need for email marketing permissions and the net value of the catalog as a new customer acquisition tool.
- Sports
- SPORTS. Low repeat highlights urgent need for retention strategy which should incorporate cross-sell into the online purchase channel and routine alerts based on the individual customer’s purchase cycle.
- Banking
- BANKING. A multi-phase statistical analysis of transactional history revealed 14 household segments comprised of behaviors from ten(10) disparate business lines ranging from checking accounts to retirement investments.
- Telecomm
- TELECOMMUNICATIONS. An increase in credit disconnects prompts the creation of a two-part approval strategy assembled from enrollment data and purchased credit scores as guided by statistical analysis of delinquency tendencies.
- Travel
- TRAVEL. A travel company crafts retention strategy tailored to a handful of distinct segments that emerge from booking history, observing from empirical data the importance of the third trip.
- Entertainment
- ENTERTAINMENT. An analysis of new customer repeat reveals 1) a short and perishable window of opportunity to encourage repeat, 2) the ability of prior transaction details to predict repeat, and 3) consecutive discounting doesn’t promote loyalty—knowledge that was incorporated into strategic recommendations for a formal new customer retention strategy.
- Beauty
- BEAUTY. Growth in customers and revenue masks specific opportunities to improve, namely by incorporating a cross-sell strategy to improve retention and exploring reasons why one particular service line is showing consistent signs of decline.
- Durables
- CONSUMER DURABLES. A consumer durables company with six distinct lines of business used purchase behavior to create marketing segments within each mini-business before rolling results into ‘enterprise-wide’ strategic segments, dynamically updated over time and named to guide the specific marketing mission—Thank, Recognize, Recapture—while also prioritizing customers within each segment.
