Effectively targeting marketing campaigns brings higher rates of response to offers. There are two main methods used to define the target audience of a campaign:
- Expert targeting’ defines the target groups based on prior experience and uncomplicated analyses of the results of past campaigns. The target audience is identified with little customer data.
- Campaign targeting’ relies upon data mining and other complex analyses of data and models. The payoff is enhanced targeting, which means an increased number of sold items to the same number of customers without any extra cost. Only those customers most likely to purchase are targeted.
Campaign targeting is particularly focused on the areas of analyses and model formation:
- in sales support, based on prediction of a successful cross-sell and up-sell , with the possibility of taking into account a client’s communication channel or segment.
Adastra will create a model for the client and identify those customers likely to have a higher response rate. The use of the ‘propensity to buy model’ lowers marketing campaign costs without changing the rate of response. This model also affords you the possibility of carrying out more campaigns with the same cost base. Deploying the ‘propensity to buy model’ also allows you to target current customers or former customers. The success of the campaign and its effect on increasing sales can be determined by comparing results with a control group.
- in support of preventive retention measures, i.e. predicting customer disloyalty
Adastra helps clients identify their best customers by creating a model enabling the client to work with these customers in order to retain them or to lead them to more profitable products. The model prevents lost revenues and increases profits by retaining profitable customers who buy more profitable products. The client thus knows which customers are likely to switch to the competition and why, and determines, together with Adastra, what special offers could prevent this. The client obtains this valuable information before a customer cancels one or more services, which enables the client to reduce attrition/churn by providing a targeted incentive in a timely and cost-effective manner.
Campaign targeting is used by large financial institutions such as banks, credit institutions, insurance companies and telecommunications operators.
Benefits of campaign targeting are:
- fewer losses due to reduced customer attrition or churn
- increased return on investment by acquiring new customers
- increased cost-effectiveness of marketing campaigns by pin-point targeting
- collection of valuable information used to design new products and manage product portfolio and pricing policy
- rapid return on investment
