6 Best Uses of Predictive Analytics for Cross-Sells and Upsells
4. Do the prep work for the finished product. Develop short-, medium- and long-term goals, Roberts says. [See sidebar.]
5. Take a customer-centric view to upselling and cross-selling. Yu says: “Companies must see beyond their divisional (or product-centric) barriers and see each customer as a person with specific interests. The model scores can be used as tie-breakers among divisions (e.g., if the person’s 'cruise' score is higher than [the customer's cross-sell] 'rental car' score, offer cruise-related product even if his/her rental car score is 'relatively' high).”
Hassemer says perhaps the “single most critical component” of success here is having a multichannel view of the customer.
As Yu's comment implies, all this involves changing the company culture. Miller elaborates: “Improving segmentation based on predictive models is great, but it gets you no practical result unless the CRM and analytics teams partner with the creative/content teams. Collaboratively, identify the top-level segments differentiated by how customers buy. Then, within each of those segments, target offers based on demographics, job title geography, past purchase and other insights from the predictive models.
“Sometimes,” she continues, “the optimization is time of day for an email message. Sometimes it's the offer. Sometimes it's which offer goes on top or is referenced in the subject line. Subscriber satisfaction will only be complete when all parties collaborate together—and share in the learnings.”
For instance, in the data gathering effort in Tip 1, Nelson says social networks can yield keywords that can later be used in customer offers.
6. Measure and adjust. Roberts says: “Understand your campaigns’ lifecycles and identify appropriate tracking periods per campaign (per channel and campaign type). Validate your analytic tools used-compare [their performance] against prior campaigns to assess toolkit degradation. Measure incremental performance. Maintain a 'no touch' perpetual holdout group to assess organic market behavior, and compare [the control group] vs. the 'treat population to assess each KPI's incremental measure—the true gain of your marketing dollars.”