Allocation Tool – DPM
Dynamic Customer Management is a program strategy to
increase total revenue contribution across the entire
customer population. This is accomplished by analytically
determining the most relevant marketing communication
for each individual.
Once we identify the dimensions
that differentiate customers, we estimate the response
rate than can be expected for each communication per
person. This is determined by applying Nested IP Regression
techniques using results from all relevant mailings– both
control and test mailings.
are multi-dimensional and effective database marketing
programs should leverage and operationalize the data
DCM accomplishes this by understanding both main and
corollary influences on purchase motivation.
marketing applications of DCM include developing custom
communication vehicles or better targeting/assignment
of existing marketing vehicles through the deployment
of rules-based segmentation.
Over time, individual message relevancy fluctuates based
on solicitation history and changes to behavioral and
attitudinal drivers. The process of determining the most
relevant and most profitable marketing programs to each
customer is applied at the individual level and explicitly
includes a “No Mail” option.