March 09, 2011

Forecast Forensics + Digital Profiles: Demand Forecast

If we can predict the Digital Profiles that a customer will belong to in the future, then we can easily predict key sales metrics, right?

For instance, if we have 1,000 customers, and 40% of the customers purchase again, and 10% of customers migrate to the Mobile Mavens segment, and each Mobile Mavens customer spends $249.55, well, then we can easily calculate what is likely to happen.
  • 1,000 * 0.40 * 0.10 * $249.55 = $9,982.
If I can do this for one segment / Digital Profile, I can do it for any Digital Profile.  And, I can do it for new customers as well, projecting how many new customers I'm likely to obtain by Digital Profile.

So, we can predict the Digital Profiles a customer is likely to migrate to, and we can predict the amount a customer is likely to spend.

Seems like that should be pretty useful, if you're a CEO, CFO, or a Chief Marketing Officer, right?