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‘Postal strikes signal time for change in marketing strategies’ says SPSS

Evaluating marketing tactics to deliver the right message, to the right customer, at the right time

October 26, 2007

Large backlogs of undelivered mail caused by the postal strikes should spell a warning to companies that fail to evaluate marketing tactics, according to SPSS, a leading worldwide provider of predictive analytics software. With the potential to save £millions, SPSS recommends that organisations revise their reliance on paper-based strategies, and update their campaigns to reflect the various different channels available for marketing to customers.

5028 million items of direct mail were sent out last year , so firms could be wasting valuable marketing resources on mailings that never find their intended recipient. SPSS recommends that companies see the aftermath of the postal strikes as a time to evaluate the best ways to target customers – such as by email, phone or SMS.

By using SPSS predictive analytics, organisations such as Debenhams and Virgin Mobile have improved marketing effectiveness by using strategic insights from past campaigns to increase revenues, reduce costs and improve customer satisfaction. Debenhams uses SPSS technology to control marketing campaigns in-house and track the results. This intelligence is then used to inform future campaigns and to predict customer behavior in order to target the right people at the right time. Through these methods, Debenhams has helped to generate significantly improved ROI from marketing activities.

SPSS’ predictive analytics software provides Virgin Mobile with a better understanding of its customers. The mobile operator undertakes more than 100 marketing campaigns each year and uses SPSS to identify the most appropriate campaign for different customer segments. For example, customers on a pay-as-you-go package who purchase a limited amount of credit and are likely to churn, are sent a text message reminding them of the benefits of Red, Virgin Mobile’s rewards scheme, at or close to the time they purchased additional credit, rather than within an ad hoc campaign.

“Predictive analytics enables organisations to analyse a multitude of customer characteristics and preferences,” said Colin Shearer vice-president of customer analytics, SPSS EMEA. “They can then determine the most cost-effective combination of marketing channels to deliver the best results and enhance customer loyalty.”

Shearer continued: “The postal strikes remind us that companies must adapt to target customers in the way that suits them. While there is certainly value in traditional marketing methods, organisations also need to embrace online advertising and social media to reach target audiences to minimise wasted budget and resources.”

Executive quote

Colin Shearer vice-president of customer analytics, SPSS EMEA “Predictive analytics enables organisations to analyse a multitude of customer characteristics and preferences”. “They can then determine the most cost-effective combination of marketing channels to deliver the best results and enhance customer loyalty.”

About the company

SPSS Inc. (Nasdaq: SPSS) is a leading global provider of predictive analytics software and solutions. The company’s predictive analytics technology improves business processes by giving organizations forward visibility for decisions made every day. By incorporating predictive analytics into their daily operations, organizations become Predictive Enterprises—able to direct and automate decisions to meet business goals and achieve a measurable competitive advantage. More than 250,000 public sector, academic, and commercial customers rely on SPSS technology to help increase revenue, reduce costs, and detect and prevent fraud. Founded in 1968, SPSS is headquartered in Chicago, Illinois. For additional information, please visit www.spss.com.

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For press enquiries please contact:
Anna Moseley at LEWIS
Tel: +44 (0) 20 7802 2626 Fax: +44 (0) 20 7802 2627
Email: annam@lewispr.com
Website: www.lewispr.com

For enquiries about SPSS please contact:
Emma Bennett
SPSS
Tel: +44 (0) 1483 719 200 Fax: +44 (0) 1483 719 290
Email: ebennett@spss.com
Website: www.spss.com

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‘Postal strikes signal time for change in marketing strategies’ says SPSS

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