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Understanding and Predicting Customer Behavior Understanding and Predicting Customer Behavior
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“A designer knows he has achieved perfection not when there is nothing left to add, but when there is nothing left to take away.”  Antoine de Saint-Exupery (French Novelist & Aviator, 1900-1944)

 


 

INTRODUCTION

It's all about change - or at least it should be.  Most analytic tools take snapshots in time, i.e. static pictures from which predictions and conclusions are then drawn.  Rarely are these pictures assembled in a meaningful way to uncover the significant trends that reside in your underlying data.  That's where they fall short and ∆lytics can help.

 

Deltalytics employs multi-dimensional analysis of customer behavior to accurately predict key future business performance metrics based upon the way your data is trending.

 

BACKGROUND

The ∆lytics methodology accurately predicts future business performance based upon changes in customer behavior over time.  We'll present you with a set of key metrics to illuminate critical business trends long before these are ever reflected on the company's financials and typical management reports.  You'll actually have a glimpse into the future in a confident, statistically meaningful and dependable manner.

 

  Fundamentally, we look at changes in customer behavior to predict their future behavior the Greek symbol (Delta) meaning change   hence the name Deltalytics.  But more than just analyzing individual customers, we aggregate and analyze the behavior of numerous customer segments (i.e. groups).  In so doing, we provide a bird's eye view of the future of your business with a high degree of confidence.  This essential business insight is invaluable and finally available at a cost that small businesses can afford.

 

APPROACH  

∆lytics has just one goal  to maximize customer lifetime valueWe accomplish this by helping you to

  • increase average customer lifetime duration
  • predict the long-term financial impact of strategic initiatives much sooner
  • determine which promotions yield the most profitable customers (in terms of their lifetime downstream value)
  • identify which products attract the most profitable customers over the long-term
  • assess how changes in company policies (pricing, product mix, etc.) will impact future sales and profit
  • anticipate when imminent customer defection is likely (so you can prevent losing them)
     

  ∆lytics combines traditional analytical and forecasting techniques with proprietary, self-tuning algorithms providing unparalleled resolution and future predictive power.  Ours is much more a strategic tool than a tactical one.  We take a customer centric view of the business and reports on key shifts and trends from that perspective.  ∆lytics doesn’t tell you, for example, what specific promotion to send to a customer.  It will, however, advise which customers should be promoted to NOW and, equally important, which ones not to.

 

  ∆lytics quantifies customer behavior from raw purchasing data while applying powerful analytic techniques to extract the essential business insight contained within.   Many of our analytical techniques are proprietary, but we may also rely upon established ones including Markov Chain Models, Cluster, Bayesian, Chaid and Regression analyses, among others.  Current and projected customer lifetime value, behavioral segmentation analysis, customer defection prediction and intervention, sales forecasting, and customer-centric accounting are only some of the functions we provide.

 

AFFORDABLE

Predictive analytics, forecasting, RFM, customer segmentation, lifetime value, and behavioral analysis are used in a variety of software products.  Nearly all, however, are geared for the Fortune 1000.  Combined with consulting services, the total cost for these high-end tools typically exceeds $500,000.  Using proprietary techniques and patent-pending algorithms, ∆lytics creates a comprehensive customer-centric, forward-looking view of your business providing comparable analytical power at a tiny fraction of the typical cost.

 

BOTTOM LINE

You may think your financials tell the whole story, but they don't.  Not early on when the game is still unfolding, and especially not when new corporate strategies and initiatives are launched.  Why?  Because the impact is often long-term and won't hit the financials for months and sometimes even years.  Yet Deltalytics, using its proprietary and patent-pending technology, can foretell the impact (good or bad) in as little as 30 days!  You'll be able to adjust course much sooner, and far more confidently, than ever before -- avoiding missteps and leveraging profitable business opportunities to accelerate growth and maximize long-term profitability.

 

  In short, we'll tell you things about your business that you never dreamed possible.  This insight will prove to be so valuable, and absolutely critical to the way you view and run your business, that you’ll want to kick yourself for not discovering it sooner.

 

CUSTOMER LIFETIME VALUE

There is little debate that customer lifetime value (LTV) is the holy grail and ultimate measure of corporate sales and marketing success.  Unless you're planning to be in business for only a short time, performance over the long term is what you must continually strive to maximize. 

 

  Unfortunately, the tools you currently use to gauge business performance, and ultimately make key strategic decisions, fall well short of what's needed to achieve optimal results.  That's because they work with historical data in a static and piecemeal fashion, taking individual snapshots of the business at arbitrary points in time.  These one-dimensional views pale in comparison to the enormous power of the multi-dimensional picture that ∆LYTICS provides.

 

Customers in decline can be potentially salvaged, but only if they can be identified. This is what ∆LYTICS will do.  Similarly, customers who are ramping up can be easily pinpointed and encouraged along.

 

HOW IT WORKS

∆LYTICS is a revolutionary approach to identifying, measuring and reliably predicting the financial outcome of latent shifts in customer behavior.  Owing much to the more traditional models for customer lifetime value analysis,  it goes much further by detecting and analyzing behavioral changes and anomalies taking place within the customer portfolio. 

 

  Other solutions can only make narrowly focused forecasts from individual snapshots in time.  ∆LYTICS, on the other hand, assembles a running movie to accurately predict the future performance of your business based upon past and present customer behavior (as a whole and by segment).  It pinpoints and uniquely illuminates any shifts in customer behavior – whether positive or negative – that will ultimately translate into predictable financial outcomes.  While it could stop there, ∆LYTICS not only foretells the future of your business, it provides the tools and insight you need to change it for the better. 

 

Interested in learning more about how Deltalytics works?  Click here to access our Non-Disclosure Agreement and take a look Under The Hood.

Copyright (c) 2007 - Deltalytics, Inc.  ALL RIGHTS RESERVED

 

 

 

Customer behavior is, without question,
the most accurate yardstick for
predicting future customer value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

∆lytics will tell you things about your business that you never dreamed possible.  This insight will prove to be so valuable, and so absolutely critical to the way you view and run your business, that you’ll want to kick yourself for not discovering it sooner.

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer lifetime value is more than a metric .. it's a way of thinking and doing business. 

 

 

 

 

 

 

 

 

 

 

 

 

 

Imagine.  A highly reliable window to the future with the ability to proactively influence - not just watch - as the future of your business unfolds. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

∆LYTICS facilitates effective intervention far earlier and with greater precision than other approaches.  It consistently delivers priceless insight with as little as 90 days of order history, working increasingly better as additional historical data becomes available.