Teradata

Communicating with your customers isn't as easy as it used to be. Either you have more customers or prospects than ever before, or they're simply overwhelmed by offers. That means you face some tough questions. How often should you contact each customer? How should you allocate your marketing budget to optimize corporate resources? What products or services, what message, and which channels are most effective in driving customer value?

Teradata Corporation has the answers. We offer an array of Advanced Analytics solutions to help you make better, faster decisions about your most critical marketing optimization issues, including:

• Identifying strategic customer segments.
• Finding the right customers at the right time.
• Selecting the right products.
• Delivering the right message.

Teradata® Advanced Analytics solutions offer you and your entire enterprise a single view of your business. Our analytical framework enables you to discoverand leverage the insights needed to deliver the right message to the right customer, about the right product or service, in the right way, and at the right time. And our service solutions provide an evolutionary path from segment marketing based on judgmental business rules to true one-to-one marketing.

We can help you determine when and how often to contact a customer. Just as important, we can help you better understand the conditions that ensure each customer contact is relevant and will positively affect customer behavior. Teradata Advanced Analytics can also support all aspects of marketing optimization from strategic planning and campaign execution to promotional analysis and evaluation. The ultimate goal is to help you optimize customer communication experiences and responses to strengthen customer satisfaction and loyalty – and to increase your revenue and margins.

Segmentation modeling uses advanced statistical algorithms to create segments of customers-smaller, manageable groupsbased on similarities in terms of value. By identifying these strategic segments, you can:

• Create marketing strategies that focus on your most valuable segments.
• Reduce promotions to your low-value customer groups whenever the cost of reaching them outweighs your potential profit.
• Track the value of customers over time and discover how to most effectively influence them; driving revenue and loyalty far beyond the immediate future, with long-lasting results.

Value-based customer segments are often the cornerstone to marketing and merchandising strategies. Our approach ensures that you have the tools in place to automatically assign new or existing customers to their appropriate strategic segment on a continuing basis.

Past performance is still the best indicator of future behavior. Promotion Response Models calculate the likelihood of customers responding to a direct mail campaign. They let you send offers to only those individuals who are 50 percent, 70 percent, or even 90 percent likely to respond. Our models also make it easier to estimate campaign response rates and ROI, allowing you to pinpoint how many customers to contact based on your specific business objectives.

Finding the right customers is just the beginning. You also need to find the right time. Multiple Campaign Response Models are designed to help you determine how often to contact a customer and when to make the contact. They can play a crucial role in avoiding the risk of annoying or desensitizing customers from too frequent or poorly timed contacts.

Which products and offers should you feature in a communication? That determination is still one of the most difficult challenges you face. Affinity Models allow you to predict the likelihood of a customer's response to an offer based on product appeal, offer receptivity, and frequency of use. Because they help maximize the efficiency and effectiveness of each customer contact, the models provide a powerful tool for assuring your communications are relevant.

Cross selling and up selling remain vital methods of increasing overall customer value – unless, of course, customers are alienated by the wrong product offering. Cross-Sell/Up-Sell Models help target which customers are susceptible to cross-sell/ up-sell offers, as well as which additional products should be promoted to a specific customer. By turning a potential annoyance into a convenient customer  experience, these models can help you increase customer loyalty and value.

Having the right product available is meaningless if you can't communicate effectively to the right people. Sensitivity Analysis helps you devise strategies that assure customers receive the right message in the right manner. It assesses a customer's sensitivity or preferences to different communication vehicles, such as email, telephone, direct mail, TV, and person-to-person, or communication frequency and message content (sweepstakes versus product discounts).

Despite having demographic-based customer segments, a major fashion retailer was still seeing flat results when marketing to these groups. Teradata showed the retailer's business users that they needed to add behavioral segmentation to their current methods. Customers can be identical demographically, but have very different shopping patterns. Behavioral segmentation is a reflection of actual consumer purchase behavior in your stores.

We developed the segments using customer metrics of value, product preferences, channel preferences, and others. As a result, the retailer was able to better understand each segment's contribution to company revenue and profits. We further profiled the segments to help the company see which behaviors made customers unique and how best to appeal to them. Then we helped refine the retailer's marketing efforts to incorporate customer value and improve messaging. The results were so successful that the customer value segments are now being utilized by the merchandising and operations areas of the business.

Because we bring decades of experience in everything from retail strategy and statistical consulting to CRM and data visualization.We have a proven track record of solving key business problems and maximizing customer relationships for companies like yours. At Teradata, analytics is a process to improve your business, not simply a collection of algorithms.We never lose sight of the business objectives of analytics: increased revenue per marketing dollar, controlled risk and cost, and improved customer loyalty.

We can execute analytic projects using either Teradata Warehouse Miner or any other data mining tool you may already have in place. And our advanced analytics easily integrate with other Teradata solutions, including Teradata Customer Relationship Management, and Teradata Retail Decisions.

To learn more about how Teradata Advanced Analytics can provide the kind of marketing optimization support that can help you grow your business, contact your Teradata representative.