| |
| |
|
Entrepreneurialism Information |
|
|
|
The Role of Statistics in Prospect Modeling
Identifying prospects has come a long way since the days of simple list buying. With the hype flying fast and furious, sometimes it's difficult to sort out truth from fiction and to put things in the proper perspective. Without worshipping buzzwords, however, two of the most important developments in recent years have been the rise of statistics and databases. These have allowed companies to create more accurate profiles of their prospects, even giving rise to the term "prospect modeling" itself. Let's see how these two developments have helped shape prospect modeling. Types With the creation of commercial databases of Census data in the late 1970's, the first easily-available customer demographics were born. Using these statistics allowed companies a high-level view of customers and their behavior. Coupling this with statistical analysees of that data, updating the data (with between Census polls and surveys), and bringing in other sources (such as driver's license records, courthouse records, and so forth) allowed for the classification of people into certain population strata, generally called types. Single mothers might be a type; new homeowners might be another type; residents of cities with a population over one million people might be another type. These types are as specific or as general as the data allows, although it is difficult to narrow down to prospects of a particular business without purchase data. Still, these statistics allow the establishment of certain types of customers and potential customers, providing that first pass at bringing prospects into focus. Specificity Because companies themselves have purchase data, they can use it to correlate general demographic data to provide detailed information about their customers and potential new customers. Additionally, they can pull together relevant data measurements and discard irrelevant ones, thus sharpening their focus further. In a nutshell, having statistics allows you to determine trends and customers in the abstract, while adding purchase data to the mix allows you to determine characteristics of customers in the specific - your customers and potential customers. Thus statistics allow for a great deal of specificity in prospect modeling. Location (Geodemographic Statistics) Yet another way that statistics can aid in modeling prospects is through geodemographic data; this data correlates Census and commercial data with geography, identifying where current customers and likely new customers reside, work, or even shop. This type of information may be more useful than it first appears. For instance, if you knew that likely customers lived in the Northeastern U.S, as opposed to the Midwest, you might be able to play off of regional identification to more effectively market your wares. Or if you knew that your customers shopped in large urban centers, but lived in the nearby suburbs, or dwelled primarily in zip code 32901, then you have more clues about them which can help you model new prospects even more efficiently. Why is that? New prospects have much in common with current customers, and the more you know your current customers, the more you will know your future customers. Conclusion Without the widespread use of databases and statistics, prospect modeling could not exist. These developments have created this technique and serve as its anchor points. Understanding what they do can allow you to craft more accurate customer profiles, which can in turn supercharge your prospect models, and then lead to even more sales. Catenate, LLC is a web-based provider of detailed easy-to-use targeted geodemographic reports, through the Catosphere (http://www.catosphere.com) and related marketing services. http://www.catosphere.com Wendy Cobrda, CEO
MORE RESOURCES:
Entrepreneurialism - Google News |
|
|
|
RELATED ARTICLES
The Magic of Float If you've ever received a service today and paid for it in 30 days you've experienced the concept of "float" - the time difference between when you receive a service and when you paid for it. In most cases this time period is a convenience to you as a customer, but in the world of business marketing it can absolutely transform your business. Designing a Comprehensive Franchise Company Computer System One of the most important management tools a franchised company needs is a great computer system. The system must integrate with all the franchised outlets and also be able to interface with the Corporate HQ computer system. Franchises - A Proven Business System Franchises offer the first time business owner a proven and successful business opportunity. If you are looking to start your own business for the first time, franchises provide you with the greatest opportunity for success. Before the Business Plan Purveyors of conventional wisdom would have you believe that the very first thing you ought to do when setting up a new business is to create a business plan.It doesn't matter whether you are selling odds and ends on eBay from your living room or something larger and more complex,Business plans are excellent and necessary. Methods of Generating New Ideas for Entrepreneurs Summary: Even with a wide variety of sources available, coming up with an idea as the basis for a new venture can still be a difficult problem. The entrepreneur can use several methods to help generate and test new ideas including focus groups, brainstorming and problem inventory analysis. Achievements Outweigh Education and Experience Q: When it comes to succeeding in business, which do you think is more important: education or experience? -- Regina M.A: Regina, have you seen the television show, Fear Factor? If you haven't seen it you've probably heard about it. Outcomes - Thats What You Need to Focus On Successful business owners and managers need to be very clear about what outcomes they want. Whether you call them goals, objectives or targets, these are the factors that you're ultimately judged on. Confidence = Preparation + Courage It always amazes me when I see someone on television holding a press conference - a lawyer outside a courtroom, a businessperson at the launch of a new product. Reporters ask hardball questions. How Good Is Your Big Idea Q: I want to start my own business. I have tons of business ideas that all sound great to me, but my husband is not so sure. The Term Sheet's Role in Raising Venture Capital Entrepreneurs and companies who are seeking venture capital often negotiate with one or more venture capital firms on a number of important issues. These issues include the amount of capital to be raised, the investment terms, etc. Defining a R&D Framework for Entrepreneurship and Innovation on Information Product Generation IntroductionKnowledge is the key resource that forms the institutional basis of the post-industrial economy and society. It should be empasized that it is institutions of higher education that give tangible expression to this argument by acting as catalysts for knowledge and research-driven economic growth as well as well-being enhancement. Why Every Student Should Start a Business With the economic downturn, students in all the major business schools have been dropping out of their entrepreneurship classes and transferring back to classes where they think they have a secure future. Students and professionals who were once planning to start businesses now have decided to go back to their cushy jobs. Dream It, Create It, Become It! Design a Dream Board Have you ever heard of "Dream Boards" or "Treasure Maps"? A Dream Board is a visual picture of the dreams you have for your life. Some of my clients also use this concept to visualize their businesses! It's their first business plan. Rx for Falling Corporate Profits Once again the squeeze is on as renewed inflation worries slow the economy's growth and many companies resort to believing that cost cutting is the best means to scramble back to profitability in an uncertain economy. The problem with this classic approach is that it sends the clear message to your brightest and best talent that no matter how well they perform, today there is no job security. Should You Write Your Own Business Plan? If you are just starting a company and looking for funding, or looking for additional funding for growth, you will need to develop a traditional business plan. Creating a business plan is a business hurdle that entrepreneurs seem to dread. New Rules Last week I was working with one of my small business clients, a bright and dynamic woman who's passionate about positioning her artisan business for growth. We were talking about her financial picture and forecasting robust sales over the next three years. Identify the Growth Factors In "The Incredible Hulk", mild-mannered scientist Bruce Banner discovered that when he was exposed to "gamma rays" he was transformed into a massive beast that could ferociously muscle his way to victory in any situation. Other than being disfigured, green, and in nothing but his boxer shorts, the Hulk discovered that a single growth factor could drastically change his ability to handle his problems. Motivation and Commitment Why do people start small businesses? The most frequently cited motivation for business start-ups is to allow the entrepreneur to achieve independence; money is secondary. Is this surprising? The other reasons named most often are that an opportunity presented itself, a person took over the family business, or the person simply wanted to be an entrepreneur. Leadership Attributes for Business Success Business success is essentially the result of successful leadership. Contrary to the popular myth, leaders are not just born. Message to Prospective Franchisees for Franchisors Many franchise companies fail to send the proper message to their prospective franchisees. This is partly due to the over regulation and intensity of litigation in the industry.
|
| home | site map |
| © 2006 |
