The power of all Prefer Network models is derived from your customer’s buying behavior correlated with catalog titles and detailed product level transactions. The base of the models is a matrix of catalog titles and major merchandise categories. Prefer determines a customer’s purchasing activity in each cell, or product and catalog combination, in the matrix. Prefer plots your customer’s purchasing percentage in each cell and compares this to your customer’s overall average. This ratio translates to a penetration index.
PREFERence Model
This model selects prospects using a 24 month purchase history and high penetration indices in the catalog title and major product category matrix.
Multiplier Model
The Multiplier Model selects frequent buyers from relevant product/catalog categories. This model uses a 24 month purchase history and accumulates scores from penetration cells that indicate buying levels that represent your customer’s overall average and above.
Max Model
The Max model tightens the focus of prospects by concentrating on recent purchase history and better than average penetration indices. This model uses a 12 month purchase history and accumulates scores from penetration cells that indicate buying levels at least 50% greater than your average customer.
Pro Model
The Pro model incorporates customized weighting of four factors: recency, frequency, monetary, and top penetration index. This is a non linear regression model which customizes the weighting factor of the four variables for each individual client
IQ Model
The IQ model focuses on buying patterns for only highly relevant product/catalog combinations. This is a non linear regression model which custom weights four variables: recency, frequency, monetary, and zip code model. The main feature of this model is that RFM is calculated only on the highly relevant product purchases, not on household activity.
Catalog Connection Model
The Catalog Connection model finds other catalogs on the network from where your customers are buying. The model then adds product purchasing behavior within these catalogs to determine the best prospects.
CMS
Prospect Models