Predictive Modeling
Predictive analytics enable a business to look forward, and make educated decisions that anticipate the future needs of customers. Peppers & Rogers Group's Managed Analytics team models data using historical data and combines it with critical insight to solve problems and achieve business objectives.
Competing predictive analytics has never been more urgent. Wide-ranging changes in nearly every aspect of business make customer behavior a critical "need-to-know" application. The Peppers & Rogers Group Managed Analytics team offers key deliverables around this discipline:
Customer Lifetime Value Analysis
A customer's lifetime value is the net present value of the stream of future cash flows attributable to that customer. While understanding the current value that a customer brings to your enterprise helps you allocate resource most effectively, Customer Lifetime Value Analysis adds time (life stage of the customer) as a new dimension to the calculation. The result is an ability to define the most profitable roadmap for all future interactions with each individual customer.
Clients use LTV analysis as a foundation for loyalty programs, direct marketing campaigns, retention programs, and an endless list of other marketing and operational activities. Learn More
Churn Modeling and Prediction
Since the cost of acquiring a new customer is far greater than retaining an existing one, Churn Modeling and Prediction is one of customer analytics' most important functions. Through analytical models, Peppers & Rogers Group's Managed Analytics team predicts which customers are most in danger of churning, thus enabling clients to take action to retain them.
"Next Best Offer" Model
Peppers & Rogers Group's "Next Best Offer" Model allows companies to predict likely candidates for cross-sell opportunities given their purchase history and other key variables. This approach identifies the customers that are most likely to buy, determines the products that customers are most likely to buy next, and provides tactical insight on how to target these customers at the right time and through the right channel.
Peppers & Rogers Group Managed Analytics bases our "Next Best Offer" Model on customers' product purchase history which helps uncover dependencies or associations between different product types. We use Association Modeling to predict the next best offer for each customer most effectively. Learn More
Demand Forecasting
Demand Forecasting and Planning constitutes a basis for all strategic and planning decisions across the supply chain. Demand Forecasting enables companies to understand their customers' buying behaviors and adapt to the fluctuating demand. The models are designed according to the specific needs of our clients in order to help them move forward in demand forecasting maturity path.
Return on Customer (ROC)
Return on customer (ROC) is a proprietary Peppers & Rogers Group metric designed to measure the value created by each available customer, rather than the value created by each dollar invested (ROI). This follows Peppers & Rogers Group's core philosophy that the only value that your enterprise can ever generate is the value generated by your customers.
This value is recognized in two ways: customers buy things currently, generating short-term value, and they also change their intention or likelihood of buying in the future. At the moment a customer's likelihood of doing future business with you goes up or down, your firm gains or loses value. Most businesses ignore this fact, and as a result find themselves focused too much on the short term, with often destructive results. Our Return on Customer methodology provides visibility into profit generated by a customer in the current period, as well as positive or negative changes in the customer's lifetime value. The result: a greater opportunity for your organization to make decisions that will yield positive results in the short and long term. Learn more.
More Solutions
Along with these core predictive capabilities, Peppers & Rogers Group Managed Analytics also offers Campaign Targeting and Response Analysis; Forecasting for Sales Planning and Targeting; and much more.