JD.com and Alibaba create indexes to identify Chinese shoppers’ spending trends, which help retailers gain insight.
Longbow 2.0 analyzes customers’ past behavior to develop highly-accurate predictions of future purchases at the individual account and individual product level.
PORTSMOUTH, New Hampshire – Oct. 8, 2013 – Loyalty Builders, a pioneer in the fast-growing field of customer analytics, today announced the release of Longbow 2.0., the first cloud-based, self-service customer analytics platform for individualized marketing. Longbow 2.0 analyzes customers’ past behavior to develop highly-accurate predictions of future purchases at the individual account and individual product level. It then creates unique marketing messages that are hyper relevant and targeted at each individual. It is available now.
Bain and Company research indicates it is six to seven times more expensive to gain a new customer than to retain an existing customer. Since the dawn of marketing, marketers have attempted to make messages more relevant and offers more effective by customizing them to the interests and needs of the customer. This targeting has typically focused on personalized greetings or demographic segmentation. However, as technology advancements have made it possible for marketers to collect more and more customer-level data, more relevant, individualized marketing is now possible. Loyalty Builders has developed advanced, proprietary algorithms that leverage transaction data to predict which individual customers are likely to buy or defect and what products they will likely purchase. It can then deliver offers based on those predictions. The solution can be put to use within minutes and without the need for advanced statisticians.
“Longbow 2.0 is going to forever change marketing by putting the power of customer analytics into the hands of marketers themselves,” said Mark Klein, CEO and founder of Loyalty Builders. “In the past decade, random ‘spray and pray’ campaigns have given way to supposedly one-to-one marketing. But even that didn’t analyze customer behavior at the individual level. We are finally at the inflection point where individualized marketing is not only possible, but very easy.”
Treating every customer as an individual leads to more precise up-sell and cross-sell opportunities, and ultimately the ability to generate more revenue from each customer. Longbow 2.0 takes in basic transaction data, such as a customer ID, which goods were purchased and total amount of a sale, and then identifies the best customers to include in individualized marketing campaigns and what to offer each one. To make deployment as simple and easy as possible, Longbow 2.0 also automatically creates lists of targeted customers and the specific offer recommendations that can be downloaded and shared directly with variable data printers, email service providers or other marketing partners who will execute.
Additional benefits of Longbow 2.0 include:
- Better response rates – Longbow 2.0’s analytics target the most likely buyers within a customer base with relevant offers that perform better than non-individualized campaigns.
- Improved customer retention – By delivering messages that are highly relevant to customer needs and preferences, Longbow 2.0 strengthens customer relationships and increases customer lifetime value.
- Effective cross-sell – Without Longbow 2.0, typical cross-sell response rates are under 1 percent; Longbow’s individualized offers produce dramatically higher results and broaden the breadth of a customer’s purchase activity.
- Ability to identify at-risk customers – Longbow 2.0 not only helps reach a company’s best customers, but it also identifies those at risk of defection and develops custom offers to drive them to purchase.
Loyalty Builders is currently offering marketers the opportunity to experience the power of Longbow 2.0 first hand through a no cost, no obligation Customer Opportunity Analysis. This free analysis reveals the risk profile of a customer population; the size and specifics of the company’s up-sell and cross-sell opportunity (how much money is being left on the table); and precise measurement of the company’s historical and current retention rate. It also includes the company’s product affinities table showing which products drive sales of other products.
About Loyalty Builders
Loyalty Builders was founded in 1999 to help businesses gain more revenue from their existing customers. The company’s customer analytics solution, based on customer transaction data, gives direct marketers actionable and individualized customer insight. This leads to more efficient use of marketing dollars, higher response and retention rates, and increases in revenue. Learn more at www.loyaltybuilders.com or follow them on Twitter (@customergurus).