Wed, 05/16/2012 - Mark Klein
The reason we collect data is to answer questions. For marketers, those questions are usually about customer buying behavior—who is ready to buy, what they are likely to buy, which customers might defect. But marketing data is in trouble.
Lately, with Google snatching customer information wirelessly with drive-by mapping cars and companies surreptitiously tracking customer behavior on their web sites more questions are being raised by data than are being answered by data. The war between the data hounds and privacy advocates is heating up.Read More ›
Thu, 04/26/2012 - Mark Klein
Granted, I have a smart dog, a young poodle named Charley. It usually takes only a few days and a few treats for Charley to master a new skill. Many traditional marketers have a harder time with something new, and we know about the difficulties of teaching old dogs new tricks.
I’m talking about marketers learning alternatives to RFM (Recency-Frequency-Monetary value), an old-fashioned but popular method for scoring customer behaviors. Just today I saw two more organizations still leaning on this outdated crutch.
Fri, 02/03/2012 - 15:09 - Mark Klein
Who to target is a crucial question for direct marketers, and response models are a popular but difficult solution. No one wants to send spam or junk mail. David Baker takes on the problem in a recent blog post. Now Baker is a very smart guy. His position at Acxiom gives him great insight into what’s happening in email marketing. When he’s the author of the latest Email Insider post, I read it right away.
Wed, 01/11/2012 - 12:44 - Mark Klein
A few weeks ago I met a gentleman who said I couldn’t predict what his customers would do. “Our customers’ tastes dictate what they’ll buy”, he told me, “and you can’t measure an intangible like taste.”
He was quite surprised when I told him we’d been doing it for years. And I suspect he didn’t quite believe me until I showed him how we do it.
At Loyalty Builders we measure taste using the algorithms we’ve developed over the last 10 years. With this proprietary math we can predict the likelihood of each individual customer buying each individual product. The methodology scales nicely so the number of customers and products is, for practical purposes, unlimited.Read More ›
Mon, 11/14/2011 - 13:50 - Mark Klein
A recent Wall Street Journal (10/27/11) carried a story about using credit card data to predict whether or not you will take your medicines as prescribed.
The article, “Next Frontier in Credit Scores: Predicting Personal Data” describes the Fair Isaac “Medicine Adherence Score” that “is based partly on how long a person has lived at the same address and whether he owns a car.” The Journal notes that “The proliferation of ’scores‘ highlights the widening trade in personal information, which is already fueling public concern about diminishing personal privacy.”Read More ›
Wed, 10/06/2010 - Mark Klein
Aberdeen Group has just released a new research report by David White, “Predictive Analytics – Driving Sales with Customer Insights”. I think this is a ‘must-read’ for any marketer struggling to improve revenue. Right off the top I’ll make full disclosure: White’s case study for existing customer marketing describes the work Loyalty Builders is doing with our client Sullivan Tire. Even if the exciting Sullivan Tire story was not part of the report, I’d still urge you to read it. Here’s why:Read More ›
Fri, 12/12/2008 - Mark Klein
We all know these are tough economic times. That message was reinforced for me again yesterday when I got a call out of the blue from a marketing analyst at a company not on my radar screen. She was charged by her VP with setting marketing priorities for next year. Specifically, she was asked to make marketing recommendations to help her company survive during this recession. The analyst was casting a broad net and found me.Read More ›
Sun, 05/25/2008 - Mark Klein
An interesting article, “Guessing the Online Customer’s Next Want” by Eric Taub, appeared last week in The New York Times. Taub starts out on the right track when he says, “Marketers have always tried to predict what people want, and then get them to buy it.” Many marketers do try to predict. Unfortunately many more don’t bother trying. As a result, you and I are inundated with uninteresting direct mail and email. Happily, Taub focuses on a retailer that does try, and on the methodology being used, collaborative filtering.Read More ›
Sun, 04/20/2008 - Mark Klein
Sometimes I show some resolve and actually carry out my
resolutions. Yesterday was one such day—I cleaned out my wallet, which was too
light on money and too thick with cards from various loyalty programs. Pruning
those loyalty cards made me look at each program and decide whether
participation was worth it, whether there was there a decent quid pro quo for
using the program.
Sun, 02/10/2008 - Mark Klein
As word spread of my teleconference for Marketing 2.0 (see previous post), an interesting contrarian opinion appeared in my mailbox. Evidently there was something in the meeting notice to cause a reader to suspect that using mathematics to describe behavior could have negative consequences. He wrote “Is it just me, or do others also wonder where this mathematization of social relationships is leading humankind?”Read More ›