Companies have a wealth of data in their customer information and billing system. This rich data set becomes even more valuable when combined with customer survey, load research, and secondary demographic and firmographic data. Our Quantitative Market Assessment services apply traditional statistical and advanced data mining techniques to these data for insights into strategic issues, such as customer segmentation, customer loyalty and retention, and targeted database marketing.
- Customer Segmentation Studies
- The goal of customer segmentation is to “classify” customers into homogeneous groups based on characteristic information. Discovering the “natural” segments within your customer (and non-customer) database can help lead to marketing insights, including product delivery and targeting strategies.
- Database Marketing
- Companies around the world are discovering the power of database marketing for determining which customers to target their marketing and customer retention efforts. Forefront Economics can help your organization get the most out of your marketing and sales programs by determining the customers to target. Our services in this area include initial project planning, sample and model development, model testing, customer database scoring, and campaign evaluation.
Example Client Projects:
- Business Customer Segmentation
- A business-to-business product provider wanted to segment their business customers for strategic marketing purposes. Using statistical algorithms to identify “natural” clusters within their customer database, Forefront Economics identified several homogeneous groups of customers. Observing the within-cluster characteristics and between-cluster differences gave management insights as to how to approach the market. Secondary data was merged with customer specific information to enhance the analysis and market insights.
- Consumer Target Marketing
- Using a statistical technique (CHAID) developed for constructing decision trees, consumers were classified based on their likelihood of buying a product. The results were then used to “score” the client’s database and target market to consumers with high probability of making a purchase.
Forefront Economics uses the extensive statistical power available in software from the SAS Institute. Specifically, the data and statistical capability in base SAS® software and SAS/STAT® are used extensively for delivery of our Quantitative Market Analysis services. We also use SAS/Enterprise Miner®, an extensive data mining package. You can learn more about these and other packages by visiting the SAS Institute.