The benefits of Precision Marketing

Using Precision marketing your organisation can better achieve target outcomes (e.g. more profitable sales) and prevent undesirable outcomes (e.g. customer attrition). You can precisely target communication, design product and service offers, and direct limited resources to customers with the highest potential.

The World Wildlife Fund is one international organisation that uses Precision Marketing (often referred to as predictive analytics or predictive modelling). The Fund reports that by using this process, it achieved the following improvements in donation rates:

• 172% higher ROI
• 25% more donations
• 28% higher average gift size
• 125% lower cost per piece mailed

[Figures from Marketing Sherpa, November 2009]

Your business may also be able to focus its marketing to achieve significantly higher positive response rates or sales in desirable customer segments at much lower cost.

Even if your business also engages in broadcast advertising using mass media, predictive modelling helps you to refine your message and target people and areas with the highest probability of responding.

Note that on predictive modelling maps it is possible to clearly identify groups of households where e.g. a 75%+ positive response rate can be expected, while the neighboring group has less than a 25% probability. Thus predictive modelling enables you to save significant time and money on direct marketing. And if you have a sales or broker network you can direct your people to the highest-potential areas. You can also identify your best sales people and best sales approaches more accurately, and develop a virtuous cycle of continuous improvement.

Predictive modelling is an ideal value-adding service for franchisors and industry associations to provide to members, providing extraordinary benefit and a powerful reason for continued membership.