Individual Models Created by MicroModeling®

MicroModeling Individual Models

Are you treating every market and location the same? While it’s good to know what your overall customers look like, you also need to know what the unique makeup and needs are of each store, so you can equip them for success. MicroModeling® not only models all of your customers, but it also creates individual models for each location. Let’s look at how this strategy and tool can benefit you. 

What is MicroModeling®? 

MicroModeling® is a statistical data analysis that looks at who your current customers are and provides a comprehensive report. This report highlights your customers’ demographics, lifestyle and behavioral data as well as geographical information. This model establishes a firm foundation of who buys from you and where they come from.  

Data scientists use the model to pull a prospect list that scores and ranks the records in your prospect universe. This shows you who has the highest probability of becoming your customer and completing a transaction. Equally important, it shows you who is highly unlikely to buy from you. This allows you to select the best records and eliminate marketing waste. 

Understanding the Need 

One of the best features of MicroModeling® is that it has the ability to model each location separately. Your customers in Washington state will look very different than your customers in Atlanta, Georgia. If you treat all of your prospects the same, you run the risk of not relating to anyone or marketing to the wrong consumers. By creating individual models, you can see the unique needs and differences in each store’s consumer demographics, locations, and lifestyles.  

With this information, you can highlight different products or target different footprints for each store. Some of your locations may pull customers in from 20 miles while others pull in customers from ½ a mile. Location matters, and it impacts the needs and wants of your customers. Knowing how to adjust your marketing territory on a store-by-store basis enables you to maximize your efforts. 

Scoring Records by Store 

Scoring is the process of running your prospect universe (those who meet your initial qualifications) through the MicroModel®. It will identify which records look most like your current customers and will rank them from most likely to least likely to buy from you. Instead of targeting prospects who look like your overall customer profile, scoring by the store model enables you to select the best records for each location. This strategy allows you to factor in the nuances of each store’s customer base and provide a tailored marketing list. 

Recommending Quantities 

If you have budgeted to mail 500,000 pieces, you can evenly divide that number and send out the same quantity to every market, or you can look at the individual models recommendations. For healthy locations that are growing, you might want to send a larger number of mail pieces, and for those stores that are struggling or have low direct mail response rates, you might want to scale back on the mail quantities. MicroModeling® equips you to make strategic decisions, so you can get the most out of your marketing investment and equip each location to grow.  

Next Steps 

MicroModeling® is a powerful tool that we created to help you identify your best prospects, increase your ROI, and reduce marketing waste. We love equipping our partners for success and helping them grow in their markets. If you would like to learn more about the power of MicroModeling® and how to use precision marketing, let’s connect.