Helping you increase customer revenue and customer loyalty

Our mission at Loyalty Builders is to help our clients gain insight into their customers’ behavior and to use that insight to build longer-lasting, more profitable customer relationships.

Longbow is our innovative offering delivering on that mission. Using predictive modeling, clients can pinpoint which individual customers will buy next, what products or services they will buy, and when they will buy it. The result is increased accuracy for cross-sell and up-sell campaigns, and the ability to build early warning systems to spot potential defectors.

Customers

Clients come from a variety of industries including retail, distribution, health services, financial services, transportation, technology and manufacturing and range from small business to enterprise.

Company overview

Loyalty Builders Inc. has offered a broad range of customer analytics and targeting services to direct marketers since 1999.  Its clients range from small ecommerce companies and catalogers to large enterprises marketing through multiple channels with millions of customers and hundreds of thousands of SKUs, in industries from retail to distribution, from technology to plumbing. Over the years since founding, it has steadily automated more and more of the analysis process, resulting in lower costs to clients and the industry’s fastest turnaround time. This automation culminated in Longbow, its new web-based software delivery service that was developed to let marketers at all size companies leverage the benefits of predictive analytics without getting lost in the mathematics necessary to effectively reach customers today.
  
Loyalty Builders analyzes customers’ past transaction behavior, already captured in billing, accounting or other company databases, to identify trends and predict future behavior.  These analyses segment customer populations into groups with similar characteristics.  Reports predict which customers will buy next, what items they will buy, which customers are cross-sell and up-sell prospects, and which are at risk of defecting.  Then Loyalty Builders helps its clients implement systems, for example an early warning system to spot potential defectors, a comprehensive testing plan, or triggered marketing systems for automated responses to changing conditions, that enable its clients to continuously monitor and shape customer behavior. The primary benefits are higher marketing ROI, more efficient campaigns, greater revenue, and better customer retention.

Approach

Loyalty Builders (LB) uses mathematical marketing and a data-based methodology to predict customer behavior and identify customer segments for appropriate treatment. Transaction data is gathered from client ERP systems and fed into the LB automated analysis engine. Benchmarks are established for current marketing performance and a Marketing Effectiveness Score(sm) is calculated. The analysis yields a set of charts and reports that enable division of the entire customer population into segments for different treatments, purchase probabilities for each customer to buy every sku, and risk scores for each customer.

From these results, the LB account team for the client will make recommendations for campaigns and contact strategies for the different segments, and then work with the client team to develop a coordinated marketing plan. This plan will include 1) a testing component to test the segmentation; 2) a component to test the personalized targeting; and 3) an offers testing component. There will be appropriate control groups for A/B tests and multivariate (factorial design) tests to determine the best offers quickly and inexpensively. Initial campaigns will be heavily oriented toward testing.

As the best segmentations and offers become clear, the marketing program will transition into a continuous cycle of data collection, analysis, campaign, test, and then back to data collection and analysis. Systems will be implemented for ongoing early warning of potential defectors and for triggers to respond to customers whose state has changed.