Response Modeling is the process of analysing
previous purchasing behaviour of customers over a logical period of
time.
Customer response date, coupled with other pertinent and relative
data, such as demographic, geographic, psychotropic and consumer spending
information is by far the most reliable source to reveal trends and
tendencies of customer purchasing behaviour and patterns. Response
Modeling digs deep into the databases to correlate meaningful patterns
unobtainable any other way.
Modeling on response data results
in improved customer response to direct marketing programs.
This is obtained by targeting only prospects that are predicted as
most likely to respond to a particular advertisement or promotion.
Instead of mailing to or calling on (in the case of telemarketing)
every prospect on a list in a database, only the ones with a high
probability of responding positively are selected. Randomness and
subjectivity are removed from the list selection process.
Marketing Introduction
and Lifetime Value
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
The benefits of Response Modeling are widely recognized as the following:
Higher returns from
smaller segments of database. Removal of "randomness"
of direct mail. Higher response for
equal dollars. Improved Return-On-Investment
(ROI) for marketing dollar. Improved inventory control
and supply-side management. Improved customer relationships
and retention. Savings on communication
costs (mailing, printing costs, telephone costs etc.)