375,542,698

Customers Analyzed YTD

9,922,645,513

Transactions Analyzed YTD

$393,506,852,821

Customer Purchases Analyzed YTD

Predictive Analytics? IBM finally gets the memo.

RSS Mon, 03/16/2015 - 08:58 - Bill Vorias

In the Wall Street Journal recently, we read that IBM is about to invest $4 billion  in “strategic imperatives,” including our favorite subject analytics. $4 billion is number that gets your attention (if you had the time and the patience to lay 4 billion dollar bills end-to-end, they’d go ‘round the earth approximately 16 times)!

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What If You Can't Afford Predictive Analytics In Your Marketing Budget?

RSS Wed, 03/04/2015 - 17:34 - Peter Moloney

Twenty years ago, if you wanted a marketing piece to look good, you had to go to a professional graphics service to get it typeset, and then a printer to get it printed. Now everybody can do that on a PC.

But then again, you can now use purpose-built templates to make your own just-about-anything: really good-looking marketing pieces, websites, emails, you name it. In other words, you can go a long way for a lot less time and money these days.

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Overcoming Obstacles To Relevant Marketing

RSS Mon, 03/02/2015 - 09:07 - Mark Klein

There are several different names for relevant marketing: personalized marketing, individualized marketing, one-to-one marketing, micro marketing are some we’ve heard.  Lots of companies want to do it, primarily for two reasons: customers are objecting to “one size fits all” spam, and vendors believe that relevance raises response rates. But whatever you call it, and regardless of your motivation, there is little consensus on how to communicate in a meaningful and unique way to each of your customers.

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What To Do When You Know What Your Customers Are Going To Do

RSS Thu, 02/26/2015 - 07:00 - Mark Klein

If you knew the river was going to flood, would you head for higher ground? Of course you would.

If you knew more than a hundred new people would show up at your door to buy today’s special, would you plan to have that special in stock? You’d be foolish not to do so.

Now, if you knew which customers were likely to defect, or to buy certain products not previously purchased, what would you do? What would your emails say? Would you act differently than you do currently?

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The Data Wars

RSS 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.

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My dog learns faster than IBM

RSS 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.

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Why response models are the wrong way to target

RSS 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.
 

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HE SAID "YOU CANT MEASURE TASTE". I SAID "WANT TO BET?"

RSS 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.

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Credit Cards Or Transaction Data

RSS 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.”

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A 'must-read' report for savvy marketers

RSS 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:

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