When predicting customer interest, accuracy and scale matter
If you can predict which customers can be convinced to buy now or predict the right products to recommend, you will lift response, unless of course those predictions are wrong. No predictive model will get it right for every customer, but accuracy improves the odds of success. Consider this:
In this instance, improving accuracy of predicted conversions of just one-half percent in a campaign to 40,000 customers yields 200 more buyers! Accurate data science matters when marketing at scale. Even small improvements in targeting and messaging yield big rewards.
Remove the Uncertainty of Marketing
If you roll a die, there is a 1/6 or 16.7% chance of rolling a ONE. If a customer has a predicted chance of buying of 16.7%, and they buy (or don’t buy), was the prediction accurate? It’s not really relevant at a scale of 1. But if you select 100 customers with an average buying probability of 16.7%, you can expect somewhere around to 16-17 buyers, but there’s some volatility when the numbers are small. As scale increases, however, something magical happens. Predicted outcomes become more certain.
Loyalty Builders has been working on retail data science for over 20 years. If you’re planning product promotions on email, looking for higher ROAS on social or paid media, trying to make direct mail more efficient, need personalized recommendations for inactive customers, trying to reverse churn rates with timely interventions, or just need more control over marketing effectiveness and budgets, click here for more information.
Loyalty Builders customer-level predictive data gives retailer marketers more control over segmentation, campaign targeting, and personalization, and shows them how to drive up incremental sales on any marketing channel. Built on 20 years of data science, our cloud-based data service empowers marketers to track customer loyalty, cross-sell products, and increase customer retention on a level not possible with RFM alone.
It’s easy, affordable, accurate, and we can prove it. Book your free consultation today.