Sydney, Australia, July 12, 2009 --(PR.com
)-- Australian marketers were advised to ‘get analytical’ before trying to be customer centric or engage with customers yesterday at ADMA Forum in Darling Harbour, Sydney.
Speaking in a keynote presentation, Mark Smith, EVP Sales and Marketing at Portrait Software emphasised ‘that in tough economic times when you have to cut budgets, you have to start by looking at what has worked in the past before you can even think about moving forward.’
Smith presented several examples of organisations that discovered their seemingly successful campaigns were in fact taking credit for non campaign related responses and, in some cases, increasing customer attrition.
Smith cited Norwegian mobile operator Telenor as an example of retention marketing back-firing and actually causing churn.
‘When Telenor got analytical they found those customers in their “renew” marketing campaign churned at a higher rate than those they didn’t interact with’ said Smith. ‘The root of this was including “sleeping dogs” - those who will stay if left alone but will leave if reminded of the end of their mobile contract - in campaign targetting.
‘With Uplift modeling Telenor was able to strip the sleeping dogs from future campaigns and realise a benefit of US$8.8 million per year.’
Uplift modeling is an analytical approach that predicts the uplift in responses from a campaign against a control group.
Other examples included US Bank, gaining an extra US$500,000 by reducing their target group by 40 percent, and Merrill Lynch.
Direct marketers wanting to ‘get analytical’ can trial Uplift Modelling with a new online tool at www.campaigncheckup.com. The tool requires eight pieces of campaign data to indicate the potential cost saving and response improvement Uplift Modeling could make to their campaigns.
About Portrait Software
Portrait Software enables organizations to engage with each of their customers as individuals, resulting in improved customer profitability, increased retention, reduced risk, and outstanding customer experiences. This is achieved through a suite of innovative, insight-driven applications which empower organizations to create enduring one-to-one relationships with their customers. The Portrait suite seamlessly integrates the world's most advanced customer analytics, powerful inbound and outbound campaign management, and best-in-class business process integration to drive real time customer interactions that communicate precisely the right message through the right channel, at the right time.
Our 300 + customers include industry-leading organizations in customer-intensive sectors. They include Merrill Lynch, Lloyds Banking Group, US Bank, Dell, Nationwide Building Society, T-Mobile, Telenor, Fingerhut, Bank of Ireland, Bank of Tokyo and Fiserv Bank Solutions.
For more information on Portrait Software, please visit: www.portraitsoftware.com