ANALYTICS AND PREDICTIVE MODELING
Our analytics and modeling services help clients quickly analyze their marketing programs to understand what works and what doesn’t.
Utilizing advanced machine learning techniques, we give clients a deeper understanding of their customers and prospects – who to reach out to, what products and offers they are interested in, which messaging channels are most effective, when and how often to communicate – allowing clients to maximize the effectiveness of their marketing spend.
Examples of recent projects include analytics and modeling for publishing clients. For one client, ADR built and implemented a model that identified prospects more likely to subscribe to the client’s newsletters. Leveraging historical transaction data as well as recent email click and open activity, the model segmented 10% of the population that accounted for almost 90% of sales. Conversely, the model recognized the worst 35% of the population that brought in less than 1% of sales, giving the client a powerful tool to achieve massive cost savings.
Predictive Modeling
Big data is only effective if it can be interpreted and leveraged for strategic decisions. Our predictive modeling services transform clients’ past experiences into actionable information, allowing them to identify prospects most likely to buy new products or customers apt to profitably up-sell or cross-sell. Our models also help clients reduce churn and attrition rates by identifying customers who are likely to cancel, payoff or are shopping competitors. We have helped clients reduce the losses in their portfolio by building risk models that identify prospects and accounts likely to go bad, even before they buy. Our predictive modeling experience spans numerous industries including financial services, insurance, healthcare, publishing, online retail, telecommunications, non-profits and more.
Prescriptive Analytics
Prescriptive analytics takes modeling a step further by determining a course of action that would best meet your goals. While predictive modeling allows you to make predictions about what might happen in the future, prescriptive analytics uses optimization concepts to leverage these predictive models to decide among various treatment options. For example, your model might tell you which prospects are most likely to buy your product, but how should you price your product to maximize profit, or how should you divide your limited budget among various marketing channels like TV, print, mail, or online ads? Given certain constraints (for example your marketing budget and/or your sales goals), prescriptive analytics evaluates the various options and determines which is the optimal course of action. ADR’s deep understanding and experience in prescriptive analytics has helped clients go beyond modeling and truly optimize their marketing programs.
Customer Profiling and Segmentation
We help clients not only to understand their customers, but also to utilize this knowledge to affect marketing strategy. We profile and segment their customers to recognize actionable patterns and distinctions, allowing clients to tailor their messaging to each customer and thus connecting with them at a level that best meets their needs and wants.
Lifetime Value
Lifetime value brings together all the various metrics into a single important measure directly correlated to ROI. How valuable is each individual customer or prospect, and what marketing activities affect this outcome? LTV combines acquisition campaigns with cross-sell, up-sell, and retention activities. LTV can only be measured through a holistic view of the customer, taking into account the proper results attribution across various marketing channels. Our experience in quantifying lifetime value measures and then developing models around these measures allow clients to fully manage their marketing spends to optimize their marketing ROI.