Wednesday, 19 March 2008

Propensity Modelling: The Green Option

The advantages of propensity modelling are well documented: it allows you to score and target the right customers, optimise resources and avoid indiscriminate mass marketing. However, the impact on the environment should not be overlooked.

In 2006, direct mail accounted for 500,000 tonnes of paper. That’s a big impact on the environment, especially considering the significant amount that would have been thrown away unopened, let alone unread.

Of course, the materials used, accurate suppressing and the cleanliness of data are viewed as playing a significant role in lessening the environmental impact of direct mail. Propensity modelling should be viewed in the same way.

Propensity modelling allows an organisation and its marketing department to score and target customers based on their propensity to act in a certain way, for example, the propensity of a customer to take up an offer or respond to your call to action.

By sending direct mail to only the customers you believe your message or offer will be relevant to, not only will you see better response rates from your campaigns, potentially maximising profitability, you can also reduce your below the line spend and your impact on the environment. Truly targeted and relevant direct mail means a reduction in paper usage, production of printed material, printing inks, delivery fuel and use of packing machinery (and related energy consumption), thereby helping the environment.

And ‘Green’ credentials or environmental impact are becoming increasingly important to consumers who are looking to make an informed choice about their purchases. Recent research has shown that people are more likely to buy from companies who are carbon neutral, fair trade, or involved with charitable work.

Publicising your company’s investment in areas such as sustainable consumption, environmental management systems, environmental accreditation and charitable donations can all help reinforce your brand values and develop productive customer relationships.

What are your thoughts on Propensity Modelling?

No comments: