The Results

Putting Economic Theory into Action

In the case study below, Proclivity generated a 26.2% increase in revenue for a client’s email campaign. Instead of targeting the population of customers that typically receive a single offer (in this case, shoes), Proclivity identified the optimal set of customers interested in shoes and then discovered and recommended another product determined to immediately increase revenues and profits (sweaters). Interestingly, the vast majority of email recipients that Proclivity selected did not have any prior history of ever buying the products being offered but the nature of their shopping behavior was sufficient.

Proclivity's ability to maximize revenue based on differential predictive behavioral and econometrics modeling is consistently verified with stringent performance analysis using negative control A/B and multivariate testing. Such analysis clearly demonstrated the amount of additional revenue Proclivity yielded by:

• Discovering a distinctive population of active customers interested in another product with little to no interest in buying the original product being offered
• Indicating what that alternate product or category of products were and then accurately and differentially targeting the right population with that offer in a way to maximize revenues

The end result: 26.2% more revenue was extracted from the very same population of customers in a matter of hours.

Approach 1: Batch and Blast

Using this standard technique to send out the same campaign to everyone online significantly limits the amount of additional revenue that can be extracted.

Approach 2: Myopic Marketing

Using previous purchasing history or standard RFM scores for targeting customers can be somewhat helpful in increasing higher campaign response rates, but it only leads to reduced revenues when much smaller customer populations are targeted.

Approach 3: Proclivity

Proclivity allows alternate campaigns to be introduced, in addition to the primary email, in order to effectively target each consumer truly interested in purchasing the product most reflective of their actual interest, including pricing preferences. As a result, more sales are extracted and fewer customers are lost.

As this case study demonstrates, Proclivity generates tangible results for clients. For more information on how Proclivity Systems’ solutions can positively impact your marketing and merchandising efforts, please contact us.