Predictive Modeling

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Predictive modeling is a method used to determine the attributes or motivating factors of those who have purchased your products or services in the past. Once these attributes are known, it is then a matter of locating like-minded consumers who have a propensity to replicate the buying habits of your existing customers. Many larger and prosperous companies have been taking advantage of this highly evolved marketing tool for years. That's because it works!

In the past, this was typically a time consuming and costly service, taking 3-5 weeks to complete at a cost of $15k-$25k or more, depending on the complexity of the job. This is no longer the case.

Datahouse provides this predictive modeling service to its clients at no cost, subject to a minimum record purchase. These highly targeted mailing lists are sold at a cost per thousand (CPM) comparable or less than traditional criteria-selected compiled lists. CPM is based on the quantity ordered. (Pricing Table)

Ask us about our wholesale program available to qualified agencies, list brokers and marketing departments!

How do we differ?

Going well beyond the limitations of traditional regression analysis, we overlay your customer database with over 750 demographic, behavioral and lifestyle variables. Using a patented genetic algorithm technology, we are able to create models using hundreds, rather than tens of variable indicators. Ultimately, this increases the likelihood that subtle predictors will be found, resulting in models that can outperform the more costly regression-based approaches by 10% or more.

How do modeled mailing lists compare?

Typically when buying prospect lists, you are asked to make your "best-guess" selections, but while your basic assumptions about your customers may be correct, the depth and breadth of information known about the records you are buying may be too broad or vague for efficient targeted marketing.

Typical Consumer Selections:

Base Rate $85.00/M
Age $5.00/M
Gender $5.00/M
Income Select $5.00/M
Marital Status $5.00/M
Presence of Children $5.00/M
SCF $5.00/M
State $5.00/M
Zip $5.00/M
Geography $5.00/M

With every selection you make, how many potential customers are you excluding? How many costly non-responders will you be including in your selection? In reality, there are generally many more factors than these alone that will determine who your best prospects will be.

We take the data card select concept out of the process by discovering who your customers are and by determining the influential traits that make them likely consumers for your products or services. The process begins with the enhancement of your customer data file with up to 500 demographic, behavioral and lifestyle variables. Using the most technologically advanced predictive modeling techniques available, we will generate a count of qualified prospects within your geographical target market, according to your business rules.