Aberdeen Report Promotes Predictive Analytics to Increase Revenue

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Loyalty Builders Inc., leader in predictive analytics, supports a recent article by David White, Senior Research Analyst for the Aberdeen Group, in which he argues that predictive analytics drives sales with customer insight.

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As a predictive analytics practitioner here at Loyalty Builders, I am blogging about and enthusiastically recommending the Aberdeen report to all of our clients and prospects. Besides making a convincing case for applying mathematics to marketing, author David White lays out the techniques to use and the steps to take to bring your company up to speed in this crucial discipline.

The Aberdeen Group recently released an article by David White entitled “Predictive Analytics – Driving Sales with Customer Insight,” emphasizing the necessity of predictive analytics in improving customer marketing and increasing sales. David White reminds readers of an earlier Aberdeen Report which found that “Best-in-Class companies were able to grow incremental sales by 24%, since adopting predictive analytics.” In order to deliver a successful marketing campaign, companies must improve the targeting of marketed offers, improve cross-sell and up-sell opportunities, and segment customers to build profiles and personas. According to the article, “Best-in-Class” companies understand target markets and know the best offers to make in order to reach them. They typically have an average response rate of over 9% and a standard 3% year-over-year reduction in marketing costs.

Loyalty Builders Inc, a specialist in predictive analytics and customer segmentation, has been helping clients of various performance levels to increase revenue through existing customer marketing for over ten years. Loyalty Builders CEO, Mark Klein supports David White’s analysis in the Aberdeen article:
“As a predictive analytics practitioner here at Loyalty Builders, I am blogging about and enthusiastically recommending the Aberdeen report to all of our clients and prospects. Besides making a convincing case for applying mathematics to marketing, author David White lays out the techniques to use and the steps to take to bring your company up to speed in this crucial discipline.”

To exemplify effective implementation of predictive analytics, David White refers to a case study on Sullivan Tire - a Loyalty Builders client.

Sullivan Tire and Auto Service, family-owned and operated since 1955, is a leading wholesale distribution center with 52 service locations throughout New England. Sullivan Tire has continuously invested in marketing to drive traffic to retail stores. Despite its advertisements on television, radio and in direct mailers, the company was still not capitalizing on their wealth of customer data. To more effectively market to existing customers, Sullivan Tire sought the expertise of predictive analytical marketing company, Loyalty Builders, in Portsmouth, NH.

The article quotes Database Manager at Sullivan Tire, Mike Panarelli: “‘I needed to know a lot more about my database before I even did anything. By breaking customers up into different segments, I was able to see which customers are loyal and strong, who only comes in occasionally, and also identify who I can likely turn into a loyal customer who uses more services and comes in more frequently.’”

Focusing on existing customer marketing through customer segmentation helped Sullivan Tire to increase the response rate of their direct mailers. Knowing when to mail the post cards and what message(s) to feature resulted in a more customer-centric initiative rather than store-centric. Panarelli comments, “I was able to shave costs, but it’s really a much smarter way of using the money. With better targeting we were able to get the response rate up.” The reports and analytics from Loyalty Builders showed that one cross-selling campaign yielded a five-fold increase in response rate and a $40 jump per order.

“The successes we’ve had with our client Sullivan Tire are a direct result of doing what White says every direct marketer should do,” says Klein.

To learn more about predictive analytics, please download a copy of this report or visit http://www.loyaltybuilders.com.

About Aberdeen Group
Aberdeen conducts primary research studies from a pool of over 500,000 panel participants. The results of each research survey are indexed and tabulated using a proprietary analytical framework which provides a solid basis for deriving fact-based analysis and findings. Aberdeen's research provides specific insight by industry sector, company size, and geography, as well as by job role, business process
and technology.

About Sullivan Tire and Auto
Sullivan Tire offers one stop shopping for complete car care from tires and tire maintenance to brakes, alignments, emissions, shocks and seasonal preparations. Sullivan Tire has a highly-trained staff with 90 Master Technicians, and hundreds of Tire Industry Association certified tire technicians. For more information about Sullivan Tire or to find one of their 47 retail locations, visit http://www.sullivantire.com.

About Loyalty Builders
Loyalty Builders Inc., founded in 1999, brings new precision to the understanding of customer behavior and how those insights are best applied in existing customer marketing. Loyalty Builders’ advanced analytical marketing and customer segmentation techniques help clients pinpoint which customers will buy next, what products or services they will buy, and when they will buy them. The result is more accurate cross-sell and up-sell campaigns, successful campaigns to get the second sale from one time buyers, the ability to build early warning systems to spot potential defectors and, ultimately, greater customer retention, higher customer revenue per year, and increased customer lifetime value. Clients come from a variety of industries including retail, distribution, health services, financial services, transportation, technology and manufacturing. Loyalty Builders’ patent pending algorithms and analytics experience are available to clients through Longbow, its web-based software service.

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