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Connecting to life
Marketing Analytics
In today’s increasingly competitive market, the need for accurate and
targeted customer contact has never been greater. Direct marketing
consistently proves itself as one of the most effective and quantifiable
methods of reaching customers.
Key services
● Propensity Modelling
● Profiling
A key element of the success of direct marketing has been the
development of large marketing databases, by both client
organisations and third party suppliers. However, a database does
not really prove its worth until it is exposed to the rigours of
statistical analysis. It is this analysis that can most effectively identify
your ‘best’ customers, either in terms of responsiveness,
conversion or long-term profitability.
Propensity modelling
● Credit Marketing
Propensity modelling is a statistical technique carried out to assess
an individual’s likelihood to behave in a pre-defined way that can be
measured.
● Life Time Value Modelling
● Market Evaluation and Segmentation
● GIS Analysis
Why is it used?
● To understand cross-sell opportunities for products and services
● To assist prospecting to identify likely new customers
● To predict the likelihood of displaying a defined behaviour, for
example: attrition, churn, become dormant
Propensity modelling techniques
CHAID Analysis: segments customers or prospects to identify the
best responding combination of variable classes. It produces
discrete segments that can be ranked according to highest
likelihood and hence the most predictive for targeting purposes.
About Equifax
Equifax is a leader in credit and marketing
CHAID and Logistical Regression: uses characteristics such as
age or income that are used to predict the probability of a given
outcome, for example: response. The regression equation is
converted into a ‘Scorecard’ that produces a continuous score for
each prospect/customer. The score is then applied to the database
and the best prospects/customers are selected for mailing.
information and works strategically with some of
Equifax Profile Analysis (EPA)
in turning information into intelligence.
The Equifax Profile Analysis aims to provide you with a picture of
your clients in terms of their demographics, geo-demographics,
and financial characteristics. Two versions are available:
the world's largest companies. Lenders and
marketers alike choose Equifax for the quality of
our data – its accuracy, depth and freshness –
and for the innovation of our marketing solutions.
Equifax Plc is part of Equifax Inc, a global leader
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Marketing Analytics
● EPA only: this is used to determine how the client
base differs from the UK base population as a whole
● EPA and CHAID Analysis: in addition to the
standard EPA output, this combined analysis
provides a mechanism so that ‘look-alikes’ can
be selected from Equifax data sources
Credit marketing
This type of analysis highlights the close links between
marketing and risk in the customer relationship
management cycle. It involves the calibration of generic
bureau scores such as Equifax Risk Navigator™ and the
other available bureau information, with client application
score cards to determine the pre-screening criteria for
the offer of credit facilities. Credit analysis ensures that
lenders do not contact people who they will ultimately
reject or who will go bad.
Segmentation
Segmentation can be either ‘demographic’ (based on
lifestyle/lifestage) or ‘behavioural’ (based on product
behaviour and usage characteristics) with each segment
described by lifestyle, attitudes, product holding etc.
customers to overlay the data with segmentation and
predictive models to ensure the best appropriation of
marketing budget.
Market evaluation
Market evaluation helps clients to apply a structured
approach to their marketing activity that supports the
future evaluation and testing of creative designs,
selections and channels. Information analysis and
results are tailored to a marketing management
audience, and are overlaid with statistical tests of
significance to ensure decisions are made upon valid
findings, not chance results.
Why use it?
● To measure the success of marketing campaigns
● For the recruitment of new customers and to
cross-sell to existing ones
● To advise on the best method for assigning future
marketing budget
● To provide more tactical strategies for
future campaigns
Why segment behaviourally?
GIS analysis
● Enables the definition of discrete, homogeneous,
customer behaviours that drive value and identify
the marketing risks and opportunities
Equifax has successful experience in using
geographic software for the following projects:
● Enables a business to quantify and prioritise
marketing activity
● Sales territory planning and analysis
● Provides snapshots at different points in time to
help evaluate the changing composition of the
customer base over time
● Provides a mechanism with which to monitor the
dynamics or migration of the entire customer base
● Improves the effectiveness of modelling by
providing consistent behavioural groups
Life Time Value (LTV) modelling
This involves assessing the value of individuals over
their lifetime as a customer and contains elements of
current value and an inverse proportion of likelihood to
churn. It is important when devising strategies for
www.equifax.co.uk
● Store catchment analysis (e.g. Drivetime)
● Customer mapping and representation
● Site assessment and location planning
● Gravity modelling
● Postal sector ranking (DM, door drop activity)
To learn how Equifax Marketing Analytics can
help you deliver more successful marketing
campaigns, call 020 7298 3000.