2. Introduction
Analysis.
Strikes either fear or suspicion into most people, but scary or not,
analysis is an essential element in any successful organisation.
Knowing more about your customers and potential customers
gives your organisation the edge in what is becoming a more
complex and confusing marketplace.
This is where LBM can help your business.
We offer the very best in market leading analytical services that will
give your business a comparative advantage over your competitors.
We can offer analytical services that will allow a more complete picture of
both your customers and market potential to emerge, giving your
marketing activity a razor sharp focus and a forecast-busting ROI.
Range of Services
Profiles Page 3
Predictive Modelling Page 4
RFM Segmentation Page 5
Product Analysis Page 6
Geographical Analysis Page 7
Find out more
Tel 0870 845 5005
Web lbm.co.uk/insight
Mail enquiries@lbm.co.uk Page 2
3. Profiling
LBM have over 10 years experience in providing customer profiles to the B2B market.
A profile provides your company with a snapshot of your current customer base. LBM
then use the most desirable aspects of your customer base to accurately identify suitable
prospects in the marketplace.
LBM currently offer several tiers of profile sophistication, from the basic top-level view
provided by DV Profile, to a completely bespoke profile developed and delivered by a
member of the analytics team.
Is a profile right for my business ?
If you are looking to purchase data from LBM for the first time, then a profile is ideal for
you.
A profile is a very effective piece of entry-level analysis, which provides a relatively easy
to understand method of identifying and ranking prospects.
You may be unsure about which records to buy; there are a lot of companies out there
after all !
You may also have a limited budget, so selecting the correct data is absolutely essential.
For example, an existing LBM client, an industrial clothing supplier, approached LBM to
buy some prospect data. This client had quite a diverse customer base, so identifying
which set of prospects would be best to buy would be difficult. However, by using a
profile, LBM were able to identify and prioritise the prospect market, enabling LBM to
offer over one hundred of thirty five thousand prospects in the top three segments.
If you have already bought some data from LBM, or are looking for something more
targeted; for example you may want prospects who are likely to buy one of your
products or services, then a predictive model may be more suitable.
Profiling is great at identifying prospects in general but is less effective when you need
something more targeted.
Find out more
Tel 0870 845 5005
Web lbm.co.uk/insight
Mail enquiries@lbm.co.uk Page 3
4. Predictive Modelling
Predictive modelling represents the next step in targeting. A predictive model allows
your business to utilise sophisticated statistical techniques to target specific groups of
customers or prospects.
LBM have the in-house capability to build powerful predictive models to help guide your
business decisions. Whether it is a model predicting a company's propensity to buy your
product, or a model that accurately targets consumers who are likely up-sell targets, LBM
have a proven track record in building and developing both customer data and research
based models for both the B2B and B2C market.
Do i need a predictive model ?
If you have already had a profile analysis done for you, or have purchased data from LBM
before, then a predictive model may be the next step in targeting for your business.
Lets say that your business wants to identify a specific group of targets. Maybe you are
interested in targeting consumers who are likely to buy a given product from your range,
or you want to target prospects that are likely to spend a certain amount ? Maybe your
business wants to identify existing customers who are likely to churn ?
This is where predictive modelling can be effective.
Predictive modelling is incredibly versatile. Provided there is suitable data to support the
analysis, a model can predict pretty much any behavior.
The model also considers a selection of variables when identifying a specific target, and
also tells us how confident it is of its prediction. This all adds up to a very powerful and
flexible way of targeting your marketing activity.
For example, an existing LBM client, having had a profile produced for them,
approached LBM about targeting prospects for a specific service. Instead of using the
existing profile, which identified prospects in general for this client, LBM built a
predictive model that would identify prospects that were likely to use that particular
service.
Find out more
Tel 0870 845 5005
Web lbm.co.uk/insight
Mail enquiries@lbm.co.uk Page 4
5. RFM Segmentation
LBM have an established RFM process that will allow simple, yet powerful analysis of
your customers' transactional activity.
Not all customers will transact with your company in the same way, so when you
communicate with your customers, this activity should guide your marketing message.
RFM analysis allows you to identify the differing characteristics of your customers and
segment your customers based on this information. This then allows you to target your
customers more effectively, using this transactional information to guide a specific
marketing message instead of a more generic approach.
Why does my business need RFM ?
RFM will be of benefit to your business in any number of ways.
If your business is wasting money speaking to customers who are of little worth to you,
or may have even ceased being a customer, then RFM segmentation can help. The
Recency segment tells you which customers have ceased trading with you, and the
monetary segments tell you who your real big hitters are.
Lets suppose that your marketing budget is slashed next year by half. Who are you going
to spend that money on talking to ? RFM allows you to segment your customer base in a
way that empowers your business to spend that budget in the right way, on the right
customers.
Single purchasers make up a large portion of most customer bases. Businesses buy from
you, and then you never see them again. If you are trying to identify and get these
businesses to repeat purchase, then RFM segmentation is for you. Regular RFM reporting
will give you visibility on who your newest customers are. You can then market to them
to try and get that repeat purchase.
For example, an existing LBM client had a very basic customer segmentation in place
based solely on value. Marketing activity was sent to all customers, with no targeting
based on actual spend characteristics, or recency of purchase, or frequency of purchase.
LBM built a comprehensive set of segments that described nearly every transactional
activity a customer could have. This segmentation now allows that client to target
specific groups of customers with marketing that is specific to their behaviour.
Find out more
Tel 0870 845 5005
Web lbm.co.uk/insight
Mail enquiries@lbm.co.uk Page 5
6. Product Analysis
LBM are also able to give insight into what your customers are buying from you.
Using complex association-rules based analysis, LBM can identify the purchasing
patterns of your customers. These association rules allow your business to learn what
customers typically purchase together helping you to target cross-sell opportunities.
Additionally, LBM are able to use sequence detection algorithms to identify purchasing
patterns over time. The combination of these two techniques gives your business
absolute insight over what you customers are purchasing from your company.
Does my business need product analysis ?
Product X Product Y
Your business may have already carried out some profiling or modelling to help identify
prospects, but your focus is now on customers and maximising the return from your
existing customer base.
Product analytics can help in this respect.
Your organisation may have a large product offering and you want to make sure you are
marketing the right products to the right customers. Product analysis can help you to do
this.
You may already have some transactional based segmentation in place. Product analysis
follows on nicely from this to focus on what customers are actually buying.
Does your organisation know who to upsell to ? Do you try and upsell everyone ? Or do
you market based on intelligence that tells you who is likely to buy what product and
when this is likely to happen ?
Product analysis can empower your business to stop doing the former and focus on the
latter.
For example, an existing LBM client sell office products in the main, but also sell a varied
amount of other non-office products. Some combinations of products are quite obvious
i.e. printers and printer cartridges, but some are not so obvious. Product analysis allowed
our client to get a view on what products are being bought together and what order
they are being bought in.
Find out more
Tel 0870 845 5005
Web lbm.co.uk/insight
Mail enquiries@lbm.co.uk Page 6
7. Geo-Analysis
LBM have a proven track record in providing geo-analytical solutions to bluechip clients
with a requirement for territory re-design or creation. We can offer your organisation the
ability to manipulate and create geo-territories determined by KPI's relevant to your
business.
Using a combination of optimisation algorithms and mapping software, LBM are able to
design a completely new set of sales/customers territories from a "green-field"
approach or re-design your existing sales/customer territories.
Why Geo-Analysis ?
In order for geo-analysis to be relevant to your business, you will normally operate a field
sales/account mgt team or have a branch network that uses territory based targeting.
This piece of analysis can be done as stand alone project, or as part of another analytical
project - for example, your organisation may have bought some data from LBM as a
result of having a predictive model built. Geo-Analysis can help your business to
distribute and organise those prospects amoungst your existing sales territories.
Lets say that you have a collection of sales teams that service the entire UK market. Each
team has a "territory" of sorts that they service. Your sales territories may have grown
organically and as such may not be optimal. We often find that sales territories that have
grown like this often encroach on each other, cover massive distances, and display other
similar inefficiencies. Geo-Analysis can help your business to rationalise these territories
to make them more efficient and thus more profitable.
For example, an LBM client wanted to create a set of territories that satisfied both
acquisition and customer service activities. The territories that were developed would
dictate how many sales and customer service teams would be required to service all of
the territories. Using the KPI's determined by the clients business model, LBM built a set
of both sales and account mgt territories that satisfied the business' KPI's but were also
legitimate in terms of size and efficiency.
Find out more
Tel 0870 845 5005
Web lbm.co.uk/insight
Mail enquiries@lbm.co.uk Page 7