White Papers

Customer Loyalty Surprises and Myths

If you’re looking to improve your customer loyalty, let Loyalty Builders help you. There‚Äôs nothing new about the desire to keep your customers from defecting to competitors. But a lot more emphasis and new thinking have been devoted to customer loyalty in the past few years. Loyalty Builders is part of that intense new focus…. Read More

RFM vs. Loyalty Builders’ Modeling

A Loyalty Builders White Paper Comparing Our Technology to a Typical RFM Analysis How RFM Works Traditional database marketing is usually based on a methodology called RFM — short for Recency, Frequency and Monetary value. Recency is the length of time since a customer’s last purchase, Frequency measures the number of times a customer has… Read More

How to Use a Loyalty Analysis

Most companies acknowledge that it costs from five to ten times more to acquire a new customer than to retain an existing one. So a lot of time, energy, and conversation are devoted to the idea of building customer loyalty. Unfortunately, most companies have no reliable way to measure customer loyalty and have no effective… Read More

Quantifying Customer Loyalty

Customer loyalty is an important idea. Most business people know it costs more to acquire a new customer than to serve one already on the books. They also understand that loyalty is affected by product quality, customer service, price, and other brand values. But most business people continue to struggle with how to retain customers…. Read More

Purchase Probability Types

The Probabilities of Additional Purchases Predicting behavior through four types of purchase intent Loyalty Rank, an excellent predictor of future purchases Probabilities of next purchase independent of product purchased (PurchaseProbs) Probabilities of next purchase of a given product (ItemPurchProbs) Probabilities of a first purchase of a given product (NextLogicalPurchaseProbs) These probabilities are based on mathematical… Read More

The Loyalty Building Cycle

Building customer loyalty is a continuing process. It begins with a quantitative measurement of customer data which produces customer loyalty profiles. These profiles are analyzed to determine the actions required to improve loyalty. When the measure/analyze/act cycle is complete, it starts again with new data that begins to measure results of the loyalty initiatives.