Segmentation and Propensity Modeling

Profiling and segmentation processes allow like-minded consumers to be grouped into manageable cells, and to be targeted with communications that speak specifically to them and address their needs and interests.

Affinitas’ regimented segmentation process employs a phased approach to build an initial propensity model, test its accuracy in the mail, and refine it for more efficient future mailings:

Phase 1: Prepare Data for Profile

* Process customer and prospect data through postal verification software

                          - Customer data will include subscription and account information

                          - Former customer data may include reason for disconnect and account or subscription data

* Append demographic and behavioral data from multiple in-house and licensed sources

Building the Model and Strategy Development

Phase 2: Build Propensity Model Based on Current Customers

 * Develop profiles of current customers through analysis of demographic, behavioral data, products/services and value (revenue/tenure)

* Build a Propensity model based on profiles of current customers for each product or service

* Test the accuracy of the model against the entire market including current customers

* Refine the model as necessary

Phase 3: Direct Mail Strategy Development

* Segment and score former and non-customer records by propensity to subscribe based on their matches to each modeled profile

* Create a test plan based on targeting records within specific ranges of propensity scores

Creative Development and Refining the Model

Phase 4: Creative Development

* Develop messaging that speaks to each target segment in a relevant way

* Incorporate graphic elements that resonate with each target segment

Phase 5: Metrics

* Calculate response rates and ROI of each mail cell

* Evaluate results of each cell with respect to others to verify the model’s predictive ability

* Determine which cells should be excluded from future mailings based on low ROI

Contact us today to speak with our analytic experts and to learn more about Smart Focus.