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Make the 80/20 and 50/50 rules work for you
Canada Post Requirements for Address Accuracy
Know your customers and create more profitable Direct Marketing programs with Data Mining
What is Data Mining?
Response Modeling?
Segmentation and Profiling
Customer Valuation
Cross Selling
Working the Modules Together
Data Mining is the process of analyzing and extracting meaningful patterns and previously unknown and actionable information from large databases.
For the direct marketer, Data Mining removes the randomness and uncertainty of mail list selection and dramatically increases the possibility of campaign success.
There are two basic forms of Data Mining:
Hypothesis Testing, and
Knowledge Discovery.
Hypothesis Testing attempts to prove or disprove preconceived ideas, and
Knowledge Discovery lets the data tell us things we did not already know.
Predictive Modeling enables the marketer to apply those insights by targeting only those customers of highest potential and value. Four Modules provide a complete solution for all database mining, profiling and modeling problems: Response Modeling, Customer Segmentation/Profiling, Customer Valuation and Cross Selling. For example:
Cross-Selling is the process of predicting what a customer is most likely to buy based upon previous purchasing history. Cross Selling utilizes the knowledge of your existing customer base to create additional sales of products and/or services. By analyzing the groups of products or services that are commonly purchased together and each customer's affinity towards different products, you can maximize your selling potential. When you use this product purchase data from your customer database, and combine it with other variables like, demographic, life-style and psychotropic data, you can identify the products that are most likely to be of interest to each customer.
In reverse, for each product or product group, you can generate a ranked list of the customers that are most likely to be attracted to that product. Instead of mailing to or calling every customer in your database, you select only the ones with a high likelihood of responding positively.
The same processes used to mine and model individual customers can be used to identify distribution routes, geographic routes or Mosaic codes to target your FSI customers. If you want to know more about Data Mining and Predictive Modeling, call us for our Practical Guide for Retailers and Direct Marketers.
The power and capability of Data Mining and Predictive Modeling provide valuable information to create a better-targeted and more profitable Direct Marketing Campaigns.
Receive higher campaign returns
from smaller segments of a database, therefore higher returns for less dollars
spent. Remove randomness from direct
mail campaigns. Identify meaningful customer
clusters. Understand the profiles of
established customers. Understand what differentiates
your customers. Identify customers with highest
profit potential per campaign. Identify groups to maximize
upsell opportunities. Maximize up-sell or cross-sell
opportunities. Identify profiles for purchasing
radio, newspaper and TV. Improve both customer acquisition
and retention. Communicate to the customer
with what they want to see and hear.