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DMW Worldwide Uses Model 1 to Help Customers Make Profitable Decisions

Published
  • February 01 1999, 1:00am EST

BACKGROUND: DMW Worldwide was recently created from a merger of four highly successful direct response firms. The agency has more than 200 clients, 345 employees and capitalized billings exceeding $150 million. As a Top Ten Direct Response Agency, DMW has a proven track record of successes in developing direct response solutions for clients across a vast range of industries, including financial services, healthcare, insurance, utilities, telecommunications, business-to-business and not-for-profit. As a full service agency, DMW offers strategic marketing solutions, creative, database marketing and management, research fulfillment, telemarketing and media management, film, broadcast and interactive media resources.

PLATFORMS: Compaq Proliant Server and a Compaq PC both running Windows NT.

PROBLEM SOLVED: DMW Worldwide uses Model 1 to help clients understand patterns in their customer data so they can make more profitable decisions. Specifically, DMW Worldwide provides segmentation and profile analysis to understand attributes and differentiators of groups of customers, builds response models to predict response to marketing offers, builds churn models to predict customer attrition, builds cross-sell models to determine what products to market to which customers and builds lead conversion models to determine where the company should invest additional efforts.

PRODUCT FUNCTIONALITY: Model 1 is a complete data mining software suite for marketing applications. The Response Modeler module predicts customer response based on historical campaign results. Customer Segmenter groups customers into homogeneous groups and explains what differentiates those groups. Customer Valuator predicts the lifetime value of a customer. Cross-Seller predicts which products a customer is likely to buy in the order they are likely to buy them.

STRENGTHS: Certainly the product is easy to use and easy to learn. Data cleanup is a breeze. But the biggest strength for our customers is the complete and integrated nature of Model 1. For instance, we'll create a lead conversion-to-sale model using the Response Modeler module, and then profile each decile using the Customer Segmenter. This gives us a good picture of each decile, improves our understanding of the marketplace and increases our ability to provide sound strategic advice to our client-partners. In the insurance industry, for example, lead conversion rates must be balanced against risk. It is not uncommon for us to see high conversion rates among high-risk segments and lower conversion rates among low-risk segments.We often use the knowledge gained by model results as a springboard to recommend sales process, offer, distribution and positioning changes that will attract and retain more profitable customers.

WEAKNESSES: We experienced a problem with scoring where, in certain instances, we could not replicate the same score on the same data set. But Unica fixed the problem right away and now it works correctly.

SELECTION CRITERIA: We chose Model 1 because we wanted a solution that was complete and also intuitive to use. By using the different modules together, we can give our customers better insight into their customer base.

DELIVERABLES: Model 1 produces models and scores. It can score within Model 1 or to the data source. It can also output the model in a run-time library or in C-source code form. Additionally Model 1 produces a variety of reports and graphs that give information about model or segment structure, variable profile and usage, and financial returns associated with using the model.

VENDOR SUPPORT: Service is a key strength. Unica provides the best and most responsive service of any company my division works with ­ bar none. It is clear that Unica cares about DMW Worldwide and what we are trying to do. They have listened to our comments, quickly fixed program bugs and incorporated our improvement suggestions into new versions of the product.

DOCUMENTATION: The Model 1 documentation was clear, complete and easy to understand. In addition to technical information about the product, it includes a good tutorial that walks you through the data mining process.

*MODEL 1 is a trademark of Group 1


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