MODELING & SCORING
Imagine that you have conducted a concept test among 500 respondents who currently buy your product, and you want to identify which of the million other customers would also be likely to buy it. It’s impractical (and expensive!) to do a survey with a million customers, but that’s where propensity modeling and database scoring come in. A model can determine what behavioral, demographic, or other data are predictive of intent to purchase one product or other. By developing this kind of model, probabilities of purchase can be assigned to the much larger customer base, which helps you target which of your customers are most likely to buy your product.
Allows you to limit your direct marketing campaigns to the people most likely to buy ♦ Can be applied to existing customer or purchased prospect lists ♦ Segmentation classifications can be appended to customer records ♦ Models can be deployed for different product configurations, which helps you market the right product to the right person
Scores appended to customer or prospect lists ♦ Sources of rich third-party behavioral and lifestyle variables available ♦ Models can be tested for correct classification rates prior to scoring ♦ Scores and model can be updated as conditions change or business needs warrant