Drilling Down

Turning Customer Data into Profits

 with a Spreadsheet

Site and Book topic:

Maximizing marketing ROI with customer behavior analysis

Enterprise Level Systems

Measuring the ROI of CRM Implementations (article)

The RFM loyalty scoring method described in the Drilling Down book is one of the most fundamental customer behavioral scoring algorithms in database marketing.  In fact, most other predictive modeling techniques will find the core RFM variables as highly predictive of customer loyalty.  For example, both a top-down regression model and a bottoms-up data-mining training session will find Recency as very highly predictive of customer response to promotions.

For this reason, more advanced users can use the Drilling Down methods and  models explained in the book to mimic the functionality of enterprise class systems that analyze customer behavior and customize the website experience based on this behavior.  All you have to do is create the loyalty scores in your customer database and use a simple Perl script to modify the website presentation based on loyalty score.  For example, you could create an anti-defection campaign where best customers with falling loyalty scores could be automatically presented with a discount or gift.

If you are unfamiliar with these systems and how they are used, you might visit the vendor sites for more detailed information.  Below is a list of resources, not in any particular order, where you can learn more about the use of customer modeling in enterprise class systems.

Overview of Issues and Software

Interactive Week 10/2000      PC Magazine  01/2001

Companies

Quadstone     SAS e-Intelligence     Quaero

Responsys     Broadbase     Xchange          Personify

Tealeaf Technology     E.piphany     CoreMetrics     Onyx Software

PrimeResponse     Accrue Software     NetGenesis     Revenio

Data-Mining Tools

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