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Best	
  of	
  Breed	
  Customer	
  Analy2cs:	
  

	
  
Ten	
  Cri2cal	
  Business	
  Insights	
  Every	
  Marketer	
  Needs!	
  
Overview	
  
Quant5	
  created	
  this	
  guide	
  to	
  highlight	
  the	
  (10)	
  key	
  
business	
  insights	
  most	
  sought	
  by	
  marketers	
  to	
  
improve	
  their	
  business	
  -­‐-­‐	
  B2B	
  and	
  B2C.	
  	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

2	
  
Insight	
  #1:	
  How	
  to	
  Determine	
  the	
  Next	
  Best	
  Product	
  Offer	
  
Challenge:	
   	
  Every	
  company	
  wants	
  to	
  know	
  the	
  next	
  product	
  to	
  offer	
  their	
  customers	
  
for	
  best	
  results.	
  	
  The	
  usual	
  way	
  of	
  determining	
  this	
  oGen	
  fails.	
  	
  
• 
• 
• 

Email	
  campaigns	
  end	
  up	
  yielding	
  low	
  sales	
  conversions.	
  	
  
Web	
  site	
  content	
  fails	
  to	
  generate	
  high	
  click-­‐through	
  rates.	
  	
  
In-­‐store	
  promoJons	
  do	
  not	
  generate	
  the	
  sales	
  growth.	
  	
  

These	
  are	
  all	
  symptoms	
  of	
  ineffecJve	
  &	
  ill-­‐targeted	
  offers.	
  
	
  
	
  
Solu2on:	
  Quant5’s	
  targeted	
  offers	
  module	
  uses	
  “data”	
  to	
  determine	
  what	
  products	
  will	
  
be	
  most	
  desired	
  by	
  specific	
  customer	
  segments.	
  	
  By	
  analyzing	
  past	
  individual	
  customer	
  
transacJons	
  Quant5	
  idenJfies	
  the	
  best	
  targeted	
  offers	
  by	
  SKU	
  at	
  specific	
  price	
  points	
  to	
  
produce	
  more	
  effecJve,	
  predictable	
  markeJng	
  insights	
  that	
  deliver	
  superior	
  results.	
  
	
  

Business	
  Applica2on:	
  B2B	
  	
  
Quant5	
  Module:	
  Targeted	
  Offers	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

3	
  
Insight	
  #2:	
  How	
  to	
  “Score”	
  Prospec2ve	
  Customers	
  
Challenge:	
   SeVng	
   sales	
   and	
   markeJng	
   prioriJes	
   is	
   criJcal	
   to	
   effecJvely	
   determine	
  
appropriate	
   resource	
   alloca2ons	
   for	
   specific	
   prospecJve	
   customer	
   segments.	
   Today	
  
in-­‐bound	
   markeJng	
   campaigns	
   produce	
   leads	
   that	
   are	
   difficult	
   to	
   prioriJze	
   and	
  
determine	
  the	
  markeJng	
  correct	
  responses.	
  	
  
Solu2on:	
   Quant5’s	
   decision	
   opportuniJes	
   module	
   allows	
   companies	
   to	
   accurately	
   rank	
  
prospecJve	
   customers.	
   	
   “Prospect	
   scores”	
   based	
   on	
   past	
   successes	
   empower	
   sales	
  
groups	
   to	
   opJmally	
   allocate	
   their	
   resources	
   to	
   pursue	
   their	
   most	
   promising	
  
opportuniJes	
  while	
  focusing	
  less	
  Jme	
  to	
  lower	
  priority	
  ones.	
  Quant5’s	
  integraJon	
  with	
  
Salesforce.com,	
   Marketo,	
   and	
   Eloqua	
   provides	
   unique	
   support	
   for	
   today’s	
   leading	
  
business	
  producJvity	
  soluJons	
  operaJng	
  in	
  markeJng	
  and	
  sales	
  environments.	
  
	
  

Business	
  Applica2on:	
  B2B	
  &	
  B2C	
  
Quant5	
  Module:	
  Decision	
  Opportuni2es	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

4	
  
Insight	
  #3:	
  How	
  to	
  Rank	
  Sales	
  Opportuni2es?	
  
Challenge:	
   Sales	
   departments	
   are	
   constantly	
   updaJng	
   their	
   internal	
   forecasts	
  
and	
  seVng	
  tacJcal	
  strategies	
  in	
  order	
  to	
  make	
  their	
  quarterly	
  revenues	
  numbers.	
  
They	
   struggle	
   to	
   turn	
   their	
   tacJcal	
   strategies	
   into	
   truly	
   strategic	
   ones	
   that	
   will	
  
reliably	
  deliver	
  the	
  numbers	
  they	
  want.	
  	
  
Solu2on:	
  By	
  assessing	
  opportuniJes	
  based	
  on	
  past	
  successes	
  businesses	
  are	
  much	
  
beer	
  at	
  focusing	
  execuJve	
  and	
  other	
  key	
  resources	
  on	
  closing	
  high	
  priority	
  sales	
  
opportuniJes.	
  Quant5’s	
  integraJon	
  with	
  Salesforce.com	
  provides	
  support	
  for	
  the	
  
leading	
   CRM	
   system	
   and	
   its	
   predicJve	
   analyJcs	
   delivers	
   far	
   superior	
   ranking	
   of	
  
sales	
  opportuniJes.	
  
	
  

Business	
  Applica2on:	
  B2B	
  &	
  B2C	
  
Quant5	
  Module:	
  Decision	
  Opportuni2es	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

5	
  
Insight	
  #4:	
  How	
  to	
  Track	
  Usage	
  Trends	
  
Challenge:	
  Today	
  many	
  businesses	
  do	
  not	
  know	
  if	
  their	
  customers	
  are	
  at	
  risk	
  of	
  
churn.	
   Two	
   criJcal	
   indicators	
   –	
   product	
   and	
   customer	
   usage	
   trends	
   –	
   are	
   oGen	
  
overlooked	
   by	
   businesses	
   as	
   indicators	
   of	
   churn	
   risk	
   during	
   Jmes	
   when	
   their	
  
focus	
  is	
  on	
  generaJng	
  new	
  prospects	
  and	
  paying	
  customers.	
  	
  
Solu2on:	
   Quant5’s	
   product	
   use	
   module	
   analyzes	
   this	
   data	
   and	
   creates	
   insights	
  
into	
   underlying	
   trends.	
   This	
   module	
   is	
   especially	
   helpful	
   to	
   companies	
   who	
  
engage	
   their	
   customers	
   in	
   long-­‐term	
   contracts,	
   subscripJons	
   or	
   licenses.	
   	
   It	
   is	
  
also	
  helpful	
  to	
  businesses	
  that	
  want	
  to	
  understand	
  how	
  product	
  usage	
  can	
  be	
  an	
  
indicator	
  of	
  customer	
  saJsfacJon.	
  
	
  

Business	
  Applica2on:	
  B2B	
  &	
  B2C	
  
Quant5	
  Module:	
  Product	
  Use	
  	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

6	
  
Insight	
  #5:	
  How	
  to	
  Create	
  Truly	
  InsighVul	
  Customer	
  Segmenta2on	
  
Challenge:	
   For	
   far	
   too	
   many	
   companies	
   customer	
   segmentaJon	
   starts	
   out	
   as	
  
esJmates	
  based	
  on	
  “gut”	
  insJnct	
  and	
  grow	
  over	
  Jme	
  to	
  intui%ve	
  approxima%ons	
  of	
  
purchase	
   levels	
   by	
   groups.	
   As	
   a	
   company	
   grows	
   and	
   its	
   customer	
   base	
   changes,	
  
these	
   esJmates	
   are	
   no	
   longer	
   effecJve	
   –	
   yet	
   they	
   remain	
   in	
   place	
   leading	
   to	
  
ineffecJve	
  markeJng	
  plans,	
  flawed	
  strategies	
  and	
  uneconomical	
  budgets.	
  
	
  
Solu2on:	
   Quant5’s	
   customer	
   segmentaJon	
   module	
   idenJfies	
   groups	
   of	
   customers	
   by	
  
loyalty	
  traits	
  and	
  purchase	
  paerns.	
  The	
  composiJons	
  of	
  these	
  groups	
  are	
  then	
  used	
  to	
  
improve	
   markeJng	
   program	
   effecJveness	
   simply	
   by	
   focusing	
   the	
   messaging	
   and	
   target	
  
of	
  product	
  and	
  service	
  offering	
  –	
  the	
  right	
  offer	
  to	
  the	
  right	
  customer!	
  
	
  

Business	
  Applica2on:	
  B2B	
  &	
  B2C	
  
Quant5	
  Module:	
  Customer	
  Segmenta2on	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

7	
  
Insight	
  #6:	
  How	
  to	
  Determine	
  a	
  Customer’s	
  Life2me	
  Value	
  
Challenge:	
   How	
   much	
   business	
   value	
   is	
   derived	
   from	
   an	
   individual	
   customer	
   over	
  
his	
   or	
   her	
   lifeJme?	
   This	
   quesJon	
   is	
   important	
   because	
   it	
   helps	
   sales,	
   customer	
  
support,	
  markeJng	
  and	
  other	
  departments	
  set	
  prioriJes.	
  Far	
  too	
  many	
  companies	
  
are	
   in	
   the	
   dark	
   about	
   answering	
   this	
   criJcal	
   quesJon	
   resulJng	
   in	
   missed	
  
opportuniJes	
  and	
  poor	
  resource	
  allocaJon	
  decisions.	
  
	
  
Solu2on:	
   Quant5	
   has	
   developed	
   an	
   analyJcal	
   module	
   that	
   accurately	
   predicts	
   the	
  
expected	
   lifeJme	
   value	
   of	
   a	
   customer	
   allowing	
   companies	
   to	
   beer	
   focus	
   their	
  
limited	
   resources	
   on	
   those	
   customers	
   with	
   the	
   highest	
   value,	
   and	
   enabling	
   their	
  
businesses	
   to	
   know	
   exactly	
   how	
   much	
   they	
   will	
   grow	
   over	
   Jme	
   based	
   on	
   past	
  
customer	
  transacJons.	
  	
  	
  Result:	
  	
  Enabling	
  true	
  “booms-­‐up”	
  forecast	
  of	
  the	
  business	
  
	
  
Business	
  Applica2on:	
  	
  
B2B	
  &	
  B2C	
  Quant5	
  Modules	
  	
  
•  Targeted	
  Offers	
  
•  Customer	
  Segmenta2on	
  
•  Product	
  Rela2onships	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

8	
  
Insight	
  #7:	
  How	
  to	
  Iden2fy	
  Customers	
  at	
  Risk	
  of	
  Churn	
  
Challenge:	
  Companies	
  know	
  that	
  “customers	
  churn”	
  results	
  in	
  the	
  cri2cal	
  loss	
  of	
  
valuable	
  buyers	
  –	
  most	
  o^en	
  permanently.	
   	
  IdenJfying	
  and	
  predicJng	
  the	
  risk	
  of	
  
churn	
  is	
  challenging	
  because	
  of	
  the	
  oGen	
  overwhelming	
  amount	
  of	
  data	
  and	
  other	
  
indicators	
  that	
  must	
  be	
  analyzed	
  to	
  successfully	
  idenJfy	
  those	
  at	
  risk	
  and	
  how	
  best	
  
to	
  take	
  the	
  acJons	
  needed	
  to	
  retain	
  customers	
  likely	
  to	
  “churn”.	
  
	
  
Solu2on:	
   Quant5	
   has	
   developed	
   a	
   predicJve	
   analyJc	
   module	
   that	
   analyzes	
  
customer	
  transacJons,	
  product	
  use	
  paerns,	
  product	
  relaJonships	
  and	
  other	
  data,	
  
to	
  predict	
  the	
  risk	
  of	
  churn	
  in	
  a	
  company’s	
  customer	
  base.	
   	
  Like	
  most	
  of	
  Quant5’s	
  
soluJons,	
  this	
  leverages	
  self-­‐learning	
  modules	
  whose	
  results	
  are	
  refined	
  over	
  Jme.	
  	
  
Risk	
   of	
   churn	
   is	
   an	
   important	
   contributor	
   to	
   a	
   business	
   that	
   must	
   be	
   monitored	
   and	
  
factored	
  into	
  almost	
  every	
  aspect	
  of	
  its	
  strategy	
  and	
  tacJcs.	
  
	
  
Business	
  Applica2on:	
  	
  
B2B	
  &	
  B2C	
  Quant5	
  Modules	
  	
  
•  Targeted	
  Offers	
  
•  Customer	
  Segmenta2on	
  
•  Product	
  Rela2onships	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

9	
  
Insight	
  #8:	
  Profitability	
  by	
  Product	
  and	
  Category	
  
Challenge:	
   When	
   companies	
   and	
   their	
   product	
   lines	
   grow	
   they	
   need	
   to	
   develop	
   different	
  
incenJve-­‐based	
   loyalty	
   and	
   promoJons	
   strategies.	
   	
   These	
   programs	
   enable	
   them	
   to	
  
generate	
   new	
   insights	
   into	
   the	
   profitability	
   of	
   products	
   and	
   categories.	
   Unfortunately,	
  
many	
   companies	
   sJll	
   rely	
   on	
   spreadsheets	
   that	
   oGen	
   do	
   not	
   take	
   into	
   account	
  
discounJng	
   (e.g.	
   couponing,	
   and	
   loyalty	
   program	
   incenJves	
   in	
   product	
   profitability	
  
analyses.	
  
	
  
Solu2on:	
  Quant5’s	
  product	
  profitability	
  model	
  was	
  designed	
  to	
  present	
  a	
  more	
  accurate	
  
representaJon	
   of	
   revenue	
   and	
   profits.	
   This	
   module	
   enables	
   marketers	
   to	
   generate	
  
product	
   and	
   profitability	
   insights	
   for	
   use	
   in	
   both	
   product	
   and	
   strategic	
   planning	
   and	
   in	
  
conjuncJon	
   with	
   other	
   product	
   management	
   modules	
   –	
   such	
   as	
   Quant5’s	
   Product	
  
RelaJonships.	
  
	
  

Business	
  Applica2on:	
  B2C	
  
Module:	
  Product	
  Profitability	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

10	
  
Insight	
  #9:	
  How	
  to	
  Develop	
  Op2mal	
  Customer	
  Profiles	
  
Challenge:	
  Businesses	
  need	
  to	
  profile	
  their	
  customers	
  in	
  a	
  variety	
  of	
  ways	
  to	
  help	
  sales,	
  
markeJng,	
   support	
   and	
   other	
   internal	
   personnel,	
   as	
   well	
   as	
   outside	
   partners.	
   This	
   is	
   no	
  
easy	
   task	
   because	
   to	
   be	
   most	
   useful	
   customer	
   profiles	
   must	
   be	
   mulJfaceted	
   and	
   allow	
  
companies	
  to	
  predict	
  future	
  buying	
  behaviors.	
  
	
  
Solu2on:	
   Developing	
   such	
   a	
   mulJfaceted	
   profile	
   involves	
   taking	
   past	
   customer	
  
transacJons,	
  idenJfying	
  the	
  next	
  products	
  and	
  price	
  they	
  will	
  purchase,	
  and	
  adding	
  in	
  a	
  
score	
   for	
   a	
   prospect	
   or	
   a	
   sales	
   opportunity.	
   By	
   combining	
   the	
   results	
   of	
   mulJple	
   Quant5	
  
modules,	
   businesses	
   can	
   create	
   customer	
   profiles	
   with	
   new	
   predicJve	
   elements	
   that	
  
provide	
  more	
  insights	
  leading	
  to	
  beer	
  business	
  decision-­‐making	
  and	
  stronger	
  results.	
  
	
  
Business	
  Applica2on	
  
	
  B2B	
  &	
  B2C	
  Module:	
  	
  
• 
• 
• 
• 
• 
• 

	
  

Product	
  Use	
  
Targeted	
  Offers	
  
Customer	
  Segmenta2on,	
  	
  
Product	
  Profitability	
  
Product	
  Rela2onships	
  
Decision	
  Opportuni2es	
  

Ten	
  Cri+cal	
  Business	
  Insights	
  

11	
  
Insight	
  #10:	
  How	
  to	
  Understand	
  Product	
  Rela2onships	
  
Challenge:	
  A	
  key	
  challenge	
  for	
  any	
  company	
  with	
  a	
  web	
  site,	
  retail	
  presence	
  or	
  display	
  
of	
   products	
   is	
   predicJng	
   which	
   products	
   will	
   sell	
   the	
   most	
   when	
   combined.	
   As	
   the	
  
number	
   of	
   SKUs	
   in	
   a	
   business	
   or	
   product	
   lines	
   increases	
   it	
   becomes	
   even	
   harder	
   to	
  
predict	
  how	
  promoJonal	
  product	
  combinaJons	
  can	
  be	
  directed	
  to	
  maximum	
  sales	
  or	
  
revenues	
  for	
  individual	
  products,	
  products	
  groups,	
  and	
  items	
  outside	
  a	
  promoJon.	
  	
  
	
  
Solu2on:	
   Quant5’s	
   product	
   relaJonships	
   module	
   significantly	
   simplifies	
   the	
  
complexiJes	
   involved	
   in	
   determining	
   the	
   right	
   mix	
   of	
   products	
   for	
   promoJons	
   or	
  
display.	
   This	
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   enables	
   marketers	
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   promoJons	
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“hidden”	
   and	
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   product	
   relaJonships	
   resulJng	
   in	
   extraordinary	
   increases	
   in	
  
sales.	
  
	
  

Business	
  Applica2on:	
  B2B	
  &	
  B2C	
  
Module:	
  Product	
  Rela2onships	
  

Ten	
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12	
  
Quant5	
  Predic2ve	
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•  SoGware	
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•  Value	
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–  F-­‐a-­‐s-­‐t	
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–  Very	
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–  Does	
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•  PredicJve	
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  applied	
  to	
  key	
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  and	
  
sales,	
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–  F-­‐a-­‐s-­‐t	
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Ten	
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13	
  
Find	
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www.quant5.com	
  

hps://twier.com/Quant5Inc	
  

Our	
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Leveraging	
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available	
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  www.quant5.com/resources/resources	
  
	
  
Ten	
  Cri+cal	
  Business	
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14	
  
We’re	
  always	
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  to	
  explore	
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Quant5	
  can	
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  Please	
  contact:	
  

Quant5,	
  Inc.	
  
Cambridge,	
  MA	
  
Phone:	
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Email:	
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URL:	
  www.quant5.com	
  
	
  

Ten	
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15	
  

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Quant5 Ten Critical Business Insights

  • 1. Best  of  Breed  Customer  Analy2cs:     Ten  Cri2cal  Business  Insights  Every  Marketer  Needs!  
  • 2. Overview   Quant5  created  this  guide  to  highlight  the  (10)  key   business  insights  most  sought  by  marketers  to   improve  their  business  -­‐-­‐  B2B  and  B2C.     Ten  Cri+cal  Business  Insights   2  
  • 3. Insight  #1:  How  to  Determine  the  Next  Best  Product  Offer   Challenge:    Every  company  wants  to  know  the  next  product  to  offer  their  customers   for  best  results.    The  usual  way  of  determining  this  oGen  fails.     •  •  •  Email  campaigns  end  up  yielding  low  sales  conversions.     Web  site  content  fails  to  generate  high  click-­‐through  rates.     In-­‐store  promoJons  do  not  generate  the  sales  growth.     These  are  all  symptoms  of  ineffecJve  &  ill-­‐targeted  offers.       Solu2on:  Quant5’s  targeted  offers  module  uses  “data”  to  determine  what  products  will   be  most  desired  by  specific  customer  segments.    By  analyzing  past  individual  customer   transacJons  Quant5  idenJfies  the  best  targeted  offers  by  SKU  at  specific  price  points  to   produce  more  effecJve,  predictable  markeJng  insights  that  deliver  superior  results.     Business  Applica2on:  B2B     Quant5  Module:  Targeted  Offers   Ten  Cri+cal  Business  Insights   3  
  • 4. Insight  #2:  How  to  “Score”  Prospec2ve  Customers   Challenge:   SeVng   sales   and   markeJng   prioriJes   is   criJcal   to   effecJvely   determine   appropriate   resource   alloca2ons   for   specific   prospecJve   customer   segments.   Today   in-­‐bound   markeJng   campaigns   produce   leads   that   are   difficult   to   prioriJze   and   determine  the  markeJng  correct  responses.     Solu2on:   Quant5’s   decision   opportuniJes   module   allows   companies   to   accurately   rank   prospecJve   customers.     “Prospect   scores”   based   on   past   successes   empower   sales   groups   to   opJmally   allocate   their   resources   to   pursue   their   most   promising   opportuniJes  while  focusing  less  Jme  to  lower  priority  ones.  Quant5’s  integraJon  with   Salesforce.com,   Marketo,   and   Eloqua   provides   unique   support   for   today’s   leading   business  producJvity  soluJons  operaJng  in  markeJng  and  sales  environments.     Business  Applica2on:  B2B  &  B2C   Quant5  Module:  Decision  Opportuni2es   Ten  Cri+cal  Business  Insights   4  
  • 5. Insight  #3:  How  to  Rank  Sales  Opportuni2es?   Challenge:   Sales   departments   are   constantly   updaJng   their   internal   forecasts   and  seVng  tacJcal  strategies  in  order  to  make  their  quarterly  revenues  numbers.   They   struggle   to   turn   their   tacJcal   strategies   into   truly   strategic   ones   that   will   reliably  deliver  the  numbers  they  want.     Solu2on:  By  assessing  opportuniJes  based  on  past  successes  businesses  are  much   beer  at  focusing  execuJve  and  other  key  resources  on  closing  high  priority  sales   opportuniJes.  Quant5’s  integraJon  with  Salesforce.com  provides  support  for  the   leading   CRM   system   and   its   predicJve   analyJcs   delivers   far   superior   ranking   of   sales  opportuniJes.     Business  Applica2on:  B2B  &  B2C   Quant5  Module:  Decision  Opportuni2es   Ten  Cri+cal  Business  Insights   5  
  • 6. Insight  #4:  How  to  Track  Usage  Trends   Challenge:  Today  many  businesses  do  not  know  if  their  customers  are  at  risk  of   churn.   Two   criJcal   indicators   –   product   and   customer   usage   trends   –   are   oGen   overlooked   by   businesses   as   indicators   of   churn   risk   during   Jmes   when   their   focus  is  on  generaJng  new  prospects  and  paying  customers.     Solu2on:   Quant5’s   product   use   module   analyzes   this   data   and   creates   insights   into   underlying   trends.   This   module   is   especially   helpful   to   companies   who   engage   their   customers   in   long-­‐term   contracts,   subscripJons   or   licenses.     It   is   also  helpful  to  businesses  that  want  to  understand  how  product  usage  can  be  an   indicator  of  customer  saJsfacJon.     Business  Applica2on:  B2B  &  B2C   Quant5  Module:  Product  Use     Ten  Cri+cal  Business  Insights   6  
  • 7. Insight  #5:  How  to  Create  Truly  InsighVul  Customer  Segmenta2on   Challenge:   For   far   too   many   companies   customer   segmentaJon   starts   out   as   esJmates  based  on  “gut”  insJnct  and  grow  over  Jme  to  intui%ve  approxima%ons  of   purchase   levels   by   groups.   As   a   company   grows   and   its   customer   base   changes,   these   esJmates   are   no   longer   effecJve   –   yet   they   remain   in   place   leading   to   ineffecJve  markeJng  plans,  flawed  strategies  and  uneconomical  budgets.     Solu2on:   Quant5’s   customer   segmentaJon   module   idenJfies   groups   of   customers   by   loyalty  traits  and  purchase  paerns.  The  composiJons  of  these  groups  are  then  used  to   improve   markeJng   program   effecJveness   simply   by   focusing   the   messaging   and   target   of  product  and  service  offering  –  the  right  offer  to  the  right  customer!     Business  Applica2on:  B2B  &  B2C   Quant5  Module:  Customer  Segmenta2on   Ten  Cri+cal  Business  Insights   7  
  • 8. Insight  #6:  How  to  Determine  a  Customer’s  Life2me  Value   Challenge:   How   much   business   value   is   derived   from   an   individual   customer   over   his   or   her   lifeJme?   This   quesJon   is   important   because   it   helps   sales,   customer   support,  markeJng  and  other  departments  set  prioriJes.  Far  too  many  companies   are   in   the   dark   about   answering   this   criJcal   quesJon   resulJng   in   missed   opportuniJes  and  poor  resource  allocaJon  decisions.     Solu2on:   Quant5   has   developed   an   analyJcal   module   that   accurately   predicts   the   expected   lifeJme   value   of   a   customer   allowing   companies   to   beer   focus   their   limited   resources   on   those   customers   with   the   highest   value,   and   enabling   their   businesses   to   know   exactly   how   much   they   will   grow   over   Jme   based   on   past   customer  transacJons.      Result:    Enabling  true  “booms-­‐up”  forecast  of  the  business     Business  Applica2on:     B2B  &  B2C  Quant5  Modules     •  Targeted  Offers   •  Customer  Segmenta2on   •  Product  Rela2onships   Ten  Cri+cal  Business  Insights   8  
  • 9. Insight  #7:  How  to  Iden2fy  Customers  at  Risk  of  Churn   Challenge:  Companies  know  that  “customers  churn”  results  in  the  cri2cal  loss  of   valuable  buyers  –  most  o^en  permanently.    IdenJfying  and  predicJng  the  risk  of   churn  is  challenging  because  of  the  oGen  overwhelming  amount  of  data  and  other   indicators  that  must  be  analyzed  to  successfully  idenJfy  those  at  risk  and  how  best   to  take  the  acJons  needed  to  retain  customers  likely  to  “churn”.     Solu2on:   Quant5   has   developed   a   predicJve   analyJc   module   that   analyzes   customer  transacJons,  product  use  paerns,  product  relaJonships  and  other  data,   to  predict  the  risk  of  churn  in  a  company’s  customer  base.    Like  most  of  Quant5’s   soluJons,  this  leverages  self-­‐learning  modules  whose  results  are  refined  over  Jme.     Risk   of   churn   is   an   important   contributor   to   a   business   that   must   be   monitored   and   factored  into  almost  every  aspect  of  its  strategy  and  tacJcs.     Business  Applica2on:     B2B  &  B2C  Quant5  Modules     •  Targeted  Offers   •  Customer  Segmenta2on   •  Product  Rela2onships   Ten  Cri+cal  Business  Insights   9  
  • 10. Insight  #8:  Profitability  by  Product  and  Category   Challenge:   When   companies   and   their   product   lines   grow   they   need   to   develop   different   incenJve-­‐based   loyalty   and   promoJons   strategies.     These   programs   enable   them   to   generate   new   insights   into   the   profitability   of   products   and   categories.   Unfortunately,   many   companies   sJll   rely   on   spreadsheets   that   oGen   do   not   take   into   account   discounJng   (e.g.   couponing,   and   loyalty   program   incenJves   in   product   profitability   analyses.     Solu2on:  Quant5’s  product  profitability  model  was  designed  to  present  a  more  accurate   representaJon   of   revenue   and   profits.   This   module   enables   marketers   to   generate   product   and   profitability   insights   for   use   in   both   product   and   strategic   planning   and   in   conjuncJon   with   other   product   management   modules   –   such   as   Quant5’s   Product   RelaJonships.     Business  Applica2on:  B2C   Module:  Product  Profitability   Ten  Cri+cal  Business  Insights   10  
  • 11. Insight  #9:  How  to  Develop  Op2mal  Customer  Profiles   Challenge:  Businesses  need  to  profile  their  customers  in  a  variety  of  ways  to  help  sales,   markeJng,   support   and   other   internal   personnel,   as   well   as   outside   partners.   This   is   no   easy   task   because   to   be   most   useful   customer   profiles   must   be   mulJfaceted   and   allow   companies  to  predict  future  buying  behaviors.     Solu2on:   Developing   such   a   mulJfaceted   profile   involves   taking   past   customer   transacJons,  idenJfying  the  next  products  and  price  they  will  purchase,  and  adding  in  a   score   for   a   prospect   or   a   sales   opportunity.   By   combining   the   results   of   mulJple   Quant5   modules,   businesses   can   create   customer   profiles   with   new   predicJve   elements   that   provide  more  insights  leading  to  beer  business  decision-­‐making  and  stronger  results.     Business  Applica2on    B2B  &  B2C  Module:     •  •  •  •  •  •    Product  Use   Targeted  Offers   Customer  Segmenta2on,     Product  Profitability   Product  Rela2onships   Decision  Opportuni2es   Ten  Cri+cal  Business  Insights   11  
  • 12. Insight  #10:  How  to  Understand  Product  Rela2onships   Challenge:  A  key  challenge  for  any  company  with  a  web  site,  retail  presence  or  display   of   products   is   predicJng   which   products   will   sell   the   most   when   combined.   As   the   number   of   SKUs   in   a   business   or   product   lines   increases   it   becomes   even   harder   to   predict  how  promoJonal  product  combinaJons  can  be  directed  to  maximum  sales  or   revenues  for  individual  products,  products  groups,  and  items  outside  a  promoJon.       Solu2on:   Quant5’s   product   relaJonships   module   significantly   simplifies   the   complexiJes   involved   in   determining   the   right   mix   of   products   for   promoJons   or   display.   This   module   enables   marketers   to   conceive   promoJons   based   on   both   “hidden”   and   dynamic   product   relaJonships   resulJng   in   extraordinary   increases   in   sales.     Business  Applica2on:  B2B  &  B2C   Module:  Product  Rela2onships   Ten  Cri+cal  Business  Insights   12  
  • 13. Quant5  Predic2ve  Marke2ng  Solu2ons   •  SoGware  as  a  Service   •  Value  ProposiJon:   –  F-­‐a-­‐s-­‐t  implementaJon  &  results   –  Very  affordable!   –  Very  reliable,  advanced  technology   –  Does  not  require  a  room  full  of  data  scienJsts   •  PredicJve  analyJcs  applied  to  key  markeJng  and   sales,  and  related,  quesJons   –  F-­‐a-­‐s-­‐t  M-­‐ROI   Ten  Cri+cal  Business  Insights   13  
  • 14. Find  Us   www.quant5.com   hps://twier.com/Quant5Inc   Our  white  paper,  "Customer  AnalyJcs:   Leveraging  the  Big  Data  RevoluJon,"  is   available  at:      www.quant5.com/resources/resources     Ten  Cri+cal  Business  Insights   14  
  • 15. We’re  always  happy  to  explore  how   Quant5  can  help  you  …  in  detail                              Please  contact:   Quant5,  Inc.   Cambridge,  MA   Phone:  +1  617-­‐401-­‐3142   Email:  sales@quant5.com   URL:  www.quant5.com     Ten  Cri+cal  Business  Insights   15