If you have a large customer database – and want to make a difference in your direct marketing – we can help you.

Customer Segmentation

Segmentation is a good place to start in understanding and relating to your customers. We create customer segmentations by allocating similar customers into groups – perhaps by needs, behaviour or lifestyle, depending on the business need.

After that we profile each segment by customer features to find out why they are different. As a result, we define findings, business implications and then marketing opportunities to influence each segment. We then create a reporting structure around the segments so that customers can be tracked. By monitoring how customers react to the marketing initiatives taken, it can be seen what works and what doesn’t.

After segmenting your customers you will be able to proactively 'work' your database yourself and continually test, execute and monitor innovative marketing initiatives.

Campaign Pre and Post Analysis

We help many organisations by analysing their customers for campaign targeting and personalizing the communication through improved customer understanding. We then measure the results and return on investment to ensure knowledge is gained from the exercise – and used to make improvements for the next campaign.

In working with one customer for the first time, we:

• Increased net profit by 30%
• Increased gross income by 23%
• Increase average response rate by 58%
• Reduced the number mailed by 20%

Response Modelling

How can you identify which customers are most likely to respond to your campaign? How many should you contact in order for your campaign to be profitable?

By learning from data on past customer behaviour, we create models that order customers from 'Most Likely' to 'Least Likely' to respond. We then analyse the number of customers to be contacted until we find the optimal profitability.

For one client, a campaign using customers selected by a model improved response rates by over 400%.

Retention Modelling

Which customers are at risk of leaving? Who is worth saving?

As above, we use past behavior to create a propensity model that predicts the risk of attrition or churn. We then segment your customers by desirability and value and build a retention framework with different strategies for ‘at risk’ customers from different segments.

This approach allowed one client to reduce monthly customer attrition by 25%.

Other Projects on Customer Data

Each of the following can be performed as an individual project – or as part of the above projects:

• Setting up your Customer Database for Best Practice Direct Marketing
• Customer Mapping and Demographic Analysis
• Targeted Lead Generation for more good customers

download Prophet Analytics General Services Brochure as a pdf

CUSTOMER MAPPING AND TARGETED ACQUISITION

Who are your customers?
Can concentrations of your most profitable customers be viewed on a map?
What are the profiles of these customers according to the 2006 Census?
Can you find new customers similar to your most profitable ones?

Mapping Your Data

Viewing where your most profitable customers are concentrated on a map is a lot easier than trying to understand a table of data. The profitability of customer areas can be coloured (according to value) and labeled with suburb, postcode or whatever is suitable for your business.

We can provide customized maps that show you which suburbs/postcodes contain your best customers and therefore the likely areas to target for new profitable customers. In addition, it may be useful to know which areas where you have no customers as potential new areas to market to.

Customer Profiles using CENSUS 2006 data

Understand your customers by using insights from the 2006 Census. Concentrations of customers in certain areas when linked to Census data will reveal trends according to age, income, marital status, housing etc to enable you to target likely candidates that may be your new profitable customers.

For example, if you discover that a key profitable customer area is Castle Hill (2154), the Census data tells us that this area consists of mostly Australian Born families (consisting of married parents 40-59 years and children 5-19yrs), are mostly Catholic/Anglican, drive a car and either own or are in the process of purchasing a house.

Targeted Lead Generation

Once we have identified the attributes of what a good existing profitable customer is within your database we can then generate lists of potential new customers that have similar profiles. Rather than marketing to a random selection of new leads you will be able to now target campaigns to those both likely to respond and be profitable.

download Prophet Analytics Customer Mapping and Targetted Acquisition Brochure as a pdf

PRINCIPLES OF PROPHET ANALYTICS

Understand your business – Business benefits can only be determined when the main driving factors are understood.

Quick Hits – Focus on deriving business benefit at each step – in order to fund the subsequent steps.

Partner – Continue to support you after the end of a project.

Use existing software – Don’t waste money on huge unnecessary software systems.

Educate – We work alongside your staff so they acquire knowledge on the job.