White Papers

Loyalty Builders offers our white papers free of charge to individuals interested in existing customer marketing.
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Abandon Attribution

The common sense approach to developing a mail plan outlined in this paper recognizes the difficulties in making accurate attribution in a multi-channel environment. The attribution effort far outweighs the sparse and often wrong information gleaned from the exercise. Instead, a simple paradigm is presented that relies on customer analytics to build integrated campaigns that deliver targeted, individualized mailings with higher response rates and at a lower cost than the current paradigm of separate email and postal campaigns that make extensive use of generic catalogs and depend on attribution to determine circulation. The new paradigm emphasizes profitability of the entire mail plan rather than focusing on revenue from each communications piece.

How to Grow Revenue with Cross-sell

There are only two ways to grow revenue: get more customers or sell more to the ones you already have. Selling to existing customers can itself be divided into two parts: getting them to continue buying what they have already been purchasing (up-sell) and selling something they have not previously purchased (cross-sell). Upsell is a continuing process; it is what keeps the business alive. But cross-sell generates new revenue. Cross-sell is so important because it grows revenues and builds businesses.

The Single Best Way to Raise Response Rates

Companies with lots of products and lots of identifiable customers can use their transaction data to target their customers with relevant direct marketing communications. Such campaigns are dramatically more effective than ‘spray and pray’ campaigns, generating significantly higher response rates and more revenue than more generic campaigns.

When Individualized Marketing Meets Big Data

The most common lament we hear from companies is that they are data rich but information poor. They have been collecting a huge amount of data but don’t know how to extract insights from it or take actions based on it. Instinctively they realize that competitive advantage is lurking somewhere in their data stores, and there is increasing pressure to find it and use it. A recent McKinsey Global Survey found that “The most pressing competitive challenge marketing executives identify is producing and using customer insights, and respondents hope to use data to drive sales and customer engagement.”

True One-to-One Marketing

Only a few years ago most marketers thought true one-to-one marketing (1:1) was an impossible dream. 

Marketers all talked about making the right offer to the right customer at the right time (the three “rights”), but ‘spray and pray’ campaigns in which each recipient got the same communication, were closer to having at least two “wrongs”. Customers have different needs, so what might have been the right offer or time for one customer was likely the wrong offer or wrong time for another. 

Solving the one-time buyer problem

Acquiring new customers costs money, and the ones who don’t come back for a second purchase can be a huge drain on profits. This white paper shows you all the data points hidden in a single initial transaction and how to use them to size your company’s one-time buyer problem along three different dimensions—number, revenue, and recency.  You will learn how to easily calculate the potential revenue opportunity from gaining the second sale from one-time buyers and how to turn that data into a systematic program to convert these “tryers” into repeat customers.

Customer-Segmentation

Customer segmentation is becoming recognized as a key tactic for increasing revenue by marketing more effectively to existing customers.  This comprehensive paper discusses the business benefits of segmentation and describes in detail how to do it—what data to use, what tools you need, the steps in the process, and the criteria for choosing a good segmentation scheme. It shows you how to use customer segmentation, the common mistakes to avoid, and the obstacles you will face.  The points are illustrated with several real world examples drawn from Loyalty Builders files. Marketers moving toward the customer-centric, personalized campaigns that customers are demanding will find this material practical and immediately useful.

Dividing the marketing budget

A common problem for marketers is deciding how to allocate their marketing budget. Some money will go to getting more sales from existing customers, and some to acquiring new customers. The challenge is finding the best way to divide the budget between these two activities. This paper describes a model to do so that depends only on the ratio of revenues from existing and new customers, and on a company’s estimate of how much more costly it is to acquire a new customer compared to making a sale to an existing customer.

Four Ways For Distributors To Get More Marketing Co-op Dollars

In today’s economy, distributors are the crucial link in the supply chain that moves products from manufacturers to the final customers, and as such are often large and complex businesses. Yet whatever the product area – from electronics to diapers—the challenges faced by these businesses have many similarities and some common solutions. In this report we describe how distributors can win more marketing funds from their manufacturing partners, and illustrate the solutions with three case studies.

Five Ways Distributors Can Increase Revenue Per Customer

In today’s economy, distributors are the crucial link in the supply chain that moves products from manufacturers to the final customers, and as such are often large and complex businesses. Yet whatever the product area – from electronics to diapers—the challenges faced by these businesses have many similarities and some common solutions. In this report we describe ways for distributors to maximize the most critical marketing metric, revenue per customer, and illustrate these methods with some real life client stories.