The Uplift Advantage: How Retailers Have Become Smarter About Contacting Customers – And Are Driving Results

The concept of customer-centricity is by no means new. Marketing and management visionaries have long stated that a true customer focus is the key to long-term success.

While most businesses claim to be customer centric, “claim” is often the operational word. Driven by the need to make their numbers, many will forsake a customer-centric vision for short-term profits. This shortsighted view has long-term costs, such as under-targeting, over-messaging, and jeopardizing lines of communication with existing customers.

In the retail industry, this is manifested in a one-size-fits-all approach. Many retailers will blanket a market with single discount offer to drive potential customers into stores rather than targeting specific customers with different types of offers that suit their particular needs. Over time, all customers then begin to expect price discounts to be standard practice. These retailers don’t distinguish between their most valuable customers who would buy with or without the discounts, “serial discount hunters,” and unlikely prospects—and this approach is neither customer-centric nor cost-efficient.

Many companies now, however, are turning to uplift modeling, a new technique that results in the true deepening of customer relationships through careful, targeted messaging. Uplift modeling is unique in that it predicts the direct impact the campaign will have on individual customers, before it is launched. By focusing only on those who will be influenced positively by your campaign, firms can dramatically improve ROI.

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