Predictive Marketing by Omer Artun

Author:Omer Artun [Artun, Omer]
Language: eng
Format: epub
Published: 2015-08-01T07:16:37+00:00

CHAPTER 9

Play Five: Predict

Likelihood to Buy

or Engage to Rank

Customers

Propensity models, also called likelihood to buy or response models, are what most people think about with predictive analytics. These models help predict the likelihood of a certain type of customer behavior,

like whether a customer that is browsing your website is likely to buy

something. In this chapter we examine how marketers can optimize any-

thing from email send frequency, to sales staff time, to money, including discounts, when armed with information about likelihood to buy or

likelihood to engage.

Online pet pharmacy PetCareRx has served pet owners for more

than 15 years. It sells many products that customers have to reorder

at varying times from 3 months to 12 months. Like most retailers,

PetCareRx took a one-size-fits-all marketing approach, offering a set

calendar of discounts and promotions to all customers. But not all

customers are alike and many are looking to buy at different times of

the year. Using predictive analytics, PetCareRx was able to differentiate discounts across customers, leading to higher sales and retention without increasing costs. Customers were ranked according to their likelihood

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