Search the website

Marketing Action Optimization

Marketing Action Optimization is a methodology of identifying and running the most effective marketing action for each customer.

Take your customer segmentation to the next level with our advanced guide

What is Marketing Action Optimization?

Marketing Action Optimization is a methodology of identifying and running the most effective marketing action for each customer (or player, subscriber, user, etc.).

The goal of Marketing Action Optimization is to increase the ROI of marketing actions in order to convert more customers, increase the spend of existing customers and reduce customer churn (abandonment). Optimizing every marketing action is especially important for consumer-facing online companies, such as Internet gaming, e-commerce and online services.

Guide to Advanced Customer Segmentation

The Context of Marketing Action Optimization

Most companies with a large number of customers frequently run marketing actions (also known as campaigns, offers, incentives, upgrades, treatments and the like) to increase the revenues generated by their customers. For example, a company may send their customers an email announcing limited-time free shipping on their next purchase to encourage the customer to make a purchase in the next few days. Another example is sending customers who have not made a purchase for some length of time an email containing a discount coupon to entice the customer to return and make a purchase.

This type of marketing is in the lifeblood of consumer-facing online companies, such as Internet gaming, e-commerce and online services (such as financial services, telephony, SaaS applications, etc.). For these companies, there is no face-to-face contact with their customers and their only opportunities to try increase income from their existing customers are via email, telephone or on-page messaging.

A Unique Marketing Action Optimization Approach

Optimove incorporates a unique approach to Marketing Action Optimization, based on a repeatable, metrics-based methodology that predicts which marketing action will be most successful for each customer or group of similar customers. This method revolves around the performing dynamic micro-segmentation of customers based on behavioral (and other) characteristics and being able to predict the future behavior of customers in response to different marketing actions. This predictive customer behavior modeling is calculated in terms of customer lifetime value in order to ensure the maximum long-term economic benefit of each marketing action. (In other words, the next best marketing action for a particular customer is the one that most increases long-term revenue from the customer and not only a short-term spending uplift.)

Each time a marketing action is run on a selection of customers, the selection is divided into a test group and a control group, and the results of the action (e.g., the number of customers who took advantage of an offer, how much they spent) are analyzed for each micro-segment represented by the selected customers. Sophisticated analysis, incorporating behavior prediction models and lifetime value calculations, can then determine the effectiveness of each marketing action for each micro-segment.

After a few rounds of testing and analysis, the Marketing Action Optimization method will have enough data to accurately predict which marketing action will be most effective for each micro-segment of customer, even down to individual customers.

The Guide to Advanced Customer Segmentation

Go in depth on advanced segmentation with this guide which was written based on analyzing tens of thousands of segments across Optimove’s customer base.

Implementing Marketing Action Optimization

Implementing the method described above requires an efficient and integrated set of multi-disciplinary technologies, incorporating a wide range of scientific and mathematical algorithms. Even for someone knowledgeable in all the required disciplines, performing and frequently updating such an analysis manually (e.g., using Excel or standard BI tools) is practically impossible.

Optimove is a Web-based (SaaS) software product dedicated specifically to the mission of predicting which marketing action will be most effective for each micro-segment of customers. The product’s ground-breaking technology is the first to integrate all the necessary auto-segmentation, statistical and predictive models required to accurately calculate and predict customer behavior and customer lifetime value, along with the application framework to select target groups, interface with campaign management systems and measure marketing action results.

Start Using Marketing Action Optimization Today!

Contact us today – or request a Web demo – to learn how you can use Optimove to easily maximize the effectiveness of your marketing actions in order to convert more customers, increase the spend of existing customers and reduce customer churn.


Get a personalized tour of Optimove

Let us show you how to go from tens to hundreds of segments