Multivariate have a wealth of experience building Statistical models to predict Propensity to Attrit or to Purchase.
Using propensity models you can ensure that Marketing activity is targeted towards those Customers where it will make the largest incremental impact. Where a Propenstiy model indicates that a product is unlikely to be required untargeted Marketing is likely to be counter productive. Brand strength is only built through appropriate and timely messages, indeed bombarding your customers with inappropriate messages will dilute the power of those times you get lucky. Customer Segmentation is simply about categorising your different types of customers. The technique which is usually used to achieve this is cluster analysis. This takes many pieces of information about your customers and finds "clusters" where all the customers within a "cluster" are as alike as possible whilst making each "cluster" as different as possible. Clearly there are however a massive number of potential solutions depending on what data is actually used for clustering and the importance placed on each dimension. |
