Marketers Use Predictive Analytics to Acquire and Retain More Customers

New Benchmark Study Shows Top Performing Companies Achieve 10% Greater Profit Margins and 13% Higher Customer Retention Rates

VIENNA, Va., March 11, 2010 -- The results are in and the evidence is clear. Organizations do not need a crystal ball to predict better ways to acquire and retain customers -- they need predictive analytics.

In recent research on predictive analytics published by Aberdeen Group, a Harte-Hanks Company (NYSE:HHS), top performing companies achieved strong performance gains using predictive analytics and data mining.

The research, Predictive Analytics: The Right Tool for Tough Times, showed that the top performing 20% of firms achieved a profit margin of 23% and a customer retention rate of 93%. In contrast, the other 80% of survey respondents achieved a profit margin of 13%, and a customer retention rate of only 80%.

“This reports supports what we have observed with our clients,” said Paul McConville, VP, TARGUSinfo. “Profit margins and lifetime value can be increased by applying analytics in real time on interactions with customers and prospects at all communication channels: forms, phone calls and display ads.”

“What was striking is that top performers have a much stronger focus on cross-selling and up-selling opportunities,” said David White, senior research analyst, Aberdeen Group. “As a strategy, that's a great way to improve profits as many of the overhead costs associated with sales and marketing are avoided. That's one reason why leading organizations have been able to demonstrate higher operating profits, and also show better increases in profit margins. There’s also a nascent demand for real-time predictive analytics. A quarter of all survey respondents say that they need real-time data feeds to drive predictive models, yet only 59% of them can currently achieve that.”

The Aberdeen Group research highlights the importance of predictive analytics and what is the sole focus of the first ever Scoring Summit event taking place May 5-6, 2010 at the Hotel Monteleone in New Orleans, LA. Hosted by TARGUSinfo, the Scoring Summit is a first-of-its-kind event bringing together B2C marketing decision makers to discuss best practices of how to wield real-time scores to attract the right leads, boost conversion rates and increase customer lifetime value.

Celebrated author of the best-selling book “Super Crunchers,” Ian Ayres, will deliver the inaugural guest keynote. The two-day agenda will also feature more than 16 industry speakers from renowned companies including: LendingTree, Clearwire, BlueKai, Sylvan Learning and from Forrester Research, Dave Frankland.

“Utilizing predictive analytics in real time is central to our strategy of optimizing our acquisition and marketing activities,” said Kristen Schiffner, senior director of internet marketing, Westwood College. “We’re looking forward to joining the industry discussing best practices and networking to learn new insights about predictive analytics at the Scoring Summit.”

For more information about the Scoring Summit, visit: www.TARGUSinfo.com/Scoring.

Source: TARGUSinfo