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The use of predictive marketing to be more selective ... but how far?

Expert's tips / 26 February 2019

Analyze consumer behaviour

Our clients sometimes ask us to advise them on the optimal use of predictive scores as part of their Direct Marketing campaigns. They understood that scores are valuable only if they are part of activation campaigns and / or Marketing Automation.

First, remember that behind these scores is an intention (sometimes still latent) of the consumer to adopt a commercial behavior: the acceptance of an offer, a (lack of) interest for a product or a category of products, a departure of the Company as a customer or subscriber …

Behaviours interpretations by predictive scores

Some customers release “high” scores, others “weak” according to discriminant characteristics that the modeling will have determined and weighted. In “output”, Data Scientists or Predictive Marketing software deliver a “scored” database that will often be re-ranked in descending order. In the case of software, this database will be organized by “score classes” to facilitate upstream work.

It is precisely this scored database that the marketer will use to get the most out of his Direct Marketing campaigns. The predictive scores will allow to be more selective in the choice of profiles and therefore to increase the conversion while reducing the costs of Direct Marketing.

Then comes the question: Do I pick 10%, 20%, the top of the basket or the 30% of the most “inclined to” profiles for the campaign?

The answer is twofold and dictated by

  • The relevance you demand for your Direct Marketing actions: If you impose high relevancy, you will select the 10%, 20% of your most inclined DB to adopt the behavior you are looking to anticipate. As a result, reduced campaign targeting and potentially more campaigns! If, on the other hand, you are less “looking” and agree to “aim wider”, you will “go down” in the probabilities and accept to consider profiles perhaps a little less inclined to adopt the behavior that you seek to predict …
  • The cost of the channels that you consider… e-mail, mail, outbound call, visit, … All these means/channels of communication do not have the same cost and therefore if you send  Business Developers in prospection, you will likely direct it to profiles that potentially have probabilities deemed “high” to respond favorably to your solicitation. The Top of the Top!

It’s your turn !

Albert DerasseAlbert Derasse

Managing Director & Partner at Inbox Belgium

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