Clario used predictive modeling to more efficiently target catalogs to both buyers and catalog inquirers, for a large direct to consumer business.  Clario brought best practices to the processes of defining customer segments, creating attributes, developing models and scoring models.  First, we created attributes from a variety of sources:

• Customer data (address, email address, customer type)
• Order data (order dates, purchase amounts, payment types, channels)
• Item data (product category purchases and amounts, returns)
• Inquiry activity (catalog requests)
• Area level demographic data (age, income, children)

We then built predictive response models, for current buyers and for catalog inquirers, based on historical mailing and purchase information.  The final sales/mailing models rank order customers and inquirers according to expected sales/mailing for upcoming catalogs.  Clario updates model scores prior to each campaign, using Clario Core.

Models: Buyer model drivers include:

• Order recency
• # of orders - lifetime
• # of items lifetime - $0-100
• Record origin
• Total Average Order Size (Lifetime Demand/Total Lifetime Orders)
• Total Inquiries per Individual
• # of items lifetime - $251-1000
• Product Category Demand last 12 months

Inquirer model drivers include:

• Total number of Inquiries
• Time Since Most Recent Inquiry
• Record origin
• Census Area demographics: families, mid-high income
• Number of web inquiries

Model Results

Our client is extremely happy with results:

• For one campaign, the Buyer model had a 25% higher Response rate and 44% higher ROI, compared to existing methods.  The Inquirer model had an ROI increase of 174% over existing methods. 
• For a second campaign, the Buyer model was full-scaled.  The Inquirer model was also very successful, generating a response rate over double that of existing methods.

Clario Core Modeling
Join the growing number of direct marketing companies to utilize the Clario Core Modeling Application, providing the foundation for efficient and effective marketing model development and scoring.  Delivered via a cloud-powered SaaS platform you get a secure, collaborative environment in which we create a modern, productive marketing analytics platform together.

About Deb Campbell
Deb is a senior marketing analytics leader and is Clario’s Vice President of Modeling Solutions and a co-founder. She has spent the majority of her career developing and implementing analytical solutions, transforming data into intelligent marketing strategies. Before co-founding Clario, Deb worked at Fingerhut where she parlayed her advanced knowledge of database marketing, predictive modeling and optimization techniques and achieve significant revenue milestones from these efforts.