It’s impossible to predict customer behavior with certainty, but experienced managers have significant knowledge about consumer preferences and behaviors. Unfortunately, most solutions for developing marketing or promotional strategies only consider one scenario, ignoring information about other likely outcomes, as well as the near certainty of consumer behavior changing over time.
This information loss can result in incorrect targeting and strategies that unnecessarily increase costs.
Why We Are Different
Unlike traditional methods, which consider only one period at a time, our RR method looks at both current and future consumer buying decisions. As a result, we are able to natively account for the impact of today’s decisions on tomorrow’s outcomes.
The multi-period nature of the RR method leads to better customer targeting, by modeling a sequence of actions. In contrast, traditional methods focus on one-time buying decisions, and assume customer behavior is stable over time.
The RR technology allows you to:
Develop strategies that account for the likelihood of customer behavior changing.
Our work for clients begins with exploratory data analysis. We use these data to develop and tune a custom RR model of customer behavior over a sequence of buying opportunities. With this model, we suggest ways to improve your marketing strategy and understand the true value of different groups of customers, always taking into account the fact that consumer behavior changes over time.