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LBM Analytical ServicesAnalytical Products and Services available from LBM

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.

Introduction

Range of Services

Profiles Predictive Modelling RFM Segmentation Product Analysis Geographical Analysis

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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.

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.

Is a profile right for my business ?


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.


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.


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 ?

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 [email protected]

Product X Product Y

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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.
