Pitney Bowes Quadruples Customer Lifetime Value with Custom Data Models
Today, acquiring new business is dependent on connecting with prospects at the right time. Data-inspired Pitney Bowes engaged Dun & Bradstreet to ensure their new client acquisition strategies were tapping into the latest data insight and modeling techniques as they scored prospect records used to drive leads into their call centers for small business solutions. With Pitney Bowes’ own customer data combined with D&B data, the goal was to identify prime targets by building and maintaining specific data variables to help drive data modeling.
The main objective was to improve the call-to-order appointment ratio and ultimately the campaign return on investment (ROI). The combined data was modeled using a patented Predictive Weight of Evidence (PWE) method that combines widely recognized Information Theory and Bayesian Probability (a way of quantifying uncertainty), scoring all non-Pitney Bowes company records by the propensity to become a customer. The resulting contacts identified were then called by the Pitney Bowes outbound call center.
How It Works
Dun & Bradstreet’s Market Insight is a powerful data visualization and modeling tool that effectively leverages access to the full D&B data universe at both global and local market levels. The tool allows for basic list building, selections, through to complex segmentation and drill down for full market analysis.
The data in D&B’s global business database is virtually always used in a custom way, however in this situation it was essential to combine and model the data in accessible environment where it could be easily used as needed in the call center. Here’s how Pitney Bowes used the data:
- A custom prospect pool was built and pre-loaded into the Dun & Bradstreet Market Insight tool for ongoing use in the call center
- Next, the highest ranked prospects are pulled first for outbound calling
- Finally, the file is quickly re-scored and updated to ensure the lead funnel is consistently full so new call plans can be set
“This activity exceeded our campaign average when viewed against past campaigns,” says Andrew Ford, Pitney Bowes’ VP for Marketing and Communications, Europe. “The quality, depth and detail of the data from Dun & Bradstreet combined with a team to build out the modeled universe meant we could be more targeted, precise and accurate in our marketing program, resulting in a more successful outcome.”
Results & ROI
Results for Pitney Bowes were based on Dun & Bradstreet calculations of “won” orders vs. their data pool. These results delivered an initial ROI of 138.6% with an eventual lifetime value of 415.9% when viewed over a contract period of 3 years. For Pitney Bowes, these results significantly outperformed their previous acquisition activity.
In the last year, 78% of the orders secured have come from prospects that scored positively using the patented Predictive Weight of Evidence (PWE) method that scored all non-Pitney Bowes company records to assess the propensity to become a customer. Use of PWE has enabled Pitney Bowes to:
- Target 47,500 prospects that would otherwise have been missed
- Increase orders by 21% as total orders in the last six months have come from this 47,500