Targeted Micro Marketing
Successful marketing consistently provides a high return on investment. The challenge is how to best segment customers, predict the behavior of the members within each segment and target them without introducing the analyst bias that occurs when using traditional segmentation and forecasting methods.
Traditional segmentation methods involve picking some number of categories (age, income, etc) and running regression analysis to test the validity of the suggested category. We do exactly the opposite. Our algorithms review your data and create segments based on customer behavioral patterns. By running simulations we derive the number of distinct segments needed based on homogeneity and heterogeneity in distinct patterns of behavior. Once the segments are identified we calculate the key characteristics that drive differing behavior. The results are free of presupposition and represent true distinction amongst customer groups.
Once behavioral segmentation is complete, we use our algorithms to predict future behavior by segment and individual customer. In general, we can predict behavior at a rate of accuracy greater than 95% and more than 8 weeks into the future.
The final step is to work with your internal marketing team to create customer segment specific marketing programs. When desired, we also offer outsourced direct marketing and can manage the entire process of data management, program implementation and performance reporting.
Leveraging our Targeted Micro Marketing solutions will allow you to put the most appropriate offer in front of the right customers and greatly improve your response while reducing your cost of sale.
Forecasting
Accurate forecasting has historically been a challenge for most businesses. Common methods involve such techniques as "same as last month; plus 5%", "add seasonality; plus 5%", insert your favorite statistical method; plus 5%). Wouldn't it be amazing to forecast key areas of your business such as sales, product co-movement, cannibalization, marketing effectiveness and other areas with greater than 95% accuracy and more than 8 weeks in to the future?
Our proven self-learning algorithms use quantitative methods, pattern recognition and simulation to determine the trajectory of performance. We've leveraged techniques previously only available to those with the huge budgets necessary to field large quantitative teams, built in artificial intelligence and added an easy to use interface putting the power in the hands of business users at a cost that is within the reach of all companies.
Because our programs generate very accurate forecast that can predict far into the future, you will have plenty of time to make operational adjustments to ensure your performance meets your targets as opposed to discovering too late that programs will not provide expected benefits or that your promotions have outrun your capacity to deliver.
In addition we can provide forecast for all of the key drivers of your business that automatically alert you to unexpected future conditions with plenty of time for you to proactively modify the outcome before the event occurs.
Highly accurate long-term forecasting gives you the ability to anticipate future events and enough time to manage unexpected results before they happen.
Web Analytics
We don't just tell you want happened in the past with your web-based sales and marketing efforts, we actually predict the future. We do this by identifying the key drivers of your business, aggregating these into core metrics and then creating a handful of important key performance indicators (KPIs). We then use our predictive algorithms to forecast the values of the drivers many weeks into the future. Next we run programs that constantly learn and simulate your business environment. These algorithms identify the most important drivers individually, and in combinations, that can positively or negatively affect your business. Finally, we present the results in an easy to understand and actionable format.
One of the key drivers of web-based sales and marketing is the performance of web marketing activities. Our algorithms use sophisticated quantitative methods to predict the performance of advertising such as banner ads and key words so you can optimize your staffing levels and timing of new advertisements. In addition our programs can make the leap from the web to your call center or retail store and report and predict when customers purchase as a result of web-based marketing.
One of the most powerful components of our program is a Web Marketing Optimization program which can advise marketing of the best mix of programs to drive desired results. For example you can choose to optimize product movement, services movement, gross sales, net sales, and other business user selected goals.
To help you plan future initiatives, we also include the ability to automatically run multivariate and randomized testing on web marketing programs.
Our programs can be used to run your whole business by extending the analysis and prediction of drivers, metrics and KPIs to your entire enterprise.
Forward looking web analytics solutions allow you to anticipate changes in performance and act before they occur.
Optimization
Optimization. Often overused like "strategy," true optimization is rarely achieved in practice. To derive optimized solutions amongst a number of possible outcomes requires the use of complicated quantitative analysis usually only available to teams spending over $1 million. Then, to be effective the results must drive operational and tactical change in time to achieve results. At Fuzzy Logix, we provide tools to business users that have the analytical power of large expensive quantitative teams, but at a low cost and with an easy to use interface. Once the results are known, our advisory services can help you design operational processes that allow you to capitalize the results.
Our marketing optimization programs work differently than the handful of other applications available today. In addition to using the historical performance of marketing programs, we run algorithms to derive the optimal state of past efforts, and then use our predictive algorithms to forecast the future performance of each program. This is key differentiator because most programs only optimize based on past results; whether the programs optimally performed or not. After we've determined the best possible performance of the individual marketing programs, we then determine the best mix of marketing programs for your desired outcomes within the boundaries of constraints you choose such as time, budget, minimum units, maximum units and others.
Pricing optimization done right can help you maintain and grow margins, control the speed of product sales, plan promotions and drive demand planning. We can help you calculate price elasticity and forecast demand at multiple price points. Our programs give business users the control to run the models on a single item or in combinations of thousands.
Product optimization, including the ability to predict the market lifecycle, co-movement and cannibalization of products, can be very powerful, but complicated. Our predictive algorithms, combined with product optimization techniques, make it easy to ensure you maximize your product movement and revenue.
Accurate, timely and actionable optimization will drive greater efficiency and profitability for your company.
Behavioral Segmentation
In traditional segmentation efforts users build a box and try to put some portion of the population inside. The classic example is segmenting on categories such as age, income and geographic locations. Unfortunately this technique introduces analyst bias and therefore the results do not represent the true state and will yield less effective segment management.
Our behavioral segmentation programs turn the traditional model inside out. The boxes build themselves based on the behavioral patterns of the group being segmented. For example, in customer segmentation, we run simulations to identify the most heterogeneous or different, customers and then use clustering techniques to test the homogeneity, or similarity, of customers to the heterogeneous group. After running thousands of possible combinations, the programs derive the true number of unique segments, group the customers into those segments and then show you the characteristics of the segments. It's a technique so powerful that Gartner calls it the number one marketing process for 2008-2013.
By using behavior and pattern recognition to derive the segments, all analyst bias is eliminated and marketing and operational planning results will be improved greatly.
In addition to segmenting customers, our algorithms can be leveraged understand the traits and behavior of sales people, product and services movement and other areas you wish to categorize.
Behavioral segmentation identifies the true segments and improves marketing and management effectiveness.
Please contact us to discuss how our solutions improve business performance.