The Role of Statistics in Prospect Modeling

Identifying prospects has come a long way since the days of simple list buying. With the hype flying fast and furious, sometimes it's difficult to sort out truth from fiction and to put things in the proper perspective. Without worshipping buzzwords, however, two of the most important developments in recent years have been the rise of statistics and databases. These have allowed companies to create more accurate profiles of their prospects, even giving rise to the term "prospect modeling" itself. Let's see how these two developments have helped shape prospect modeling.

Types

With the creation of commercial databases of Census data in the late 1970's, the first easily-available customer demographics were born. Using these statistics allowed companies a high-level view of customers and their behavior. Coupling this with statistical analysees of that data, updating the data (with between Census polls and surveys), and bringing in other sources (such as driver's license records, courthouse records, and so forth) allowed for the classification of people into certain population strata, generally called types. Single mothers might be a type; new homeowners might be another type; residents of cities with a population over one million people might be another type. These types are as specific or as general as the data allows, although it is difficult to narrow down to prospects of a particular business without purchase data. Still, these statistics allow the establishment of certain types of customers and potential customers, providing that first pass at bringing prospects into focus.

Specificity

Because companies themselves have purchase data, they can use it to correlate general demographic data to provide detailed information about their customers and potential new customers. Additionally, they can pull together relevant data measurements and discard irrelevant ones, thus sharpening their focus further. In a nutshell, having statistics allows you to determine trends and customers in the abstract, while adding purchase data to the mix allows you to determine characteristics of customers in the specific ? your customers and potential customers. Thus statistics allow for a great deal of specificity in prospect modeling.

Location (Geodemographic Statistics)

Yet another way that statistics can aid in modeling prospects is through geodemographic data; this data correlates Census and commercial data with geography, identifying where current customers and likely new customers reside, work, or even shop. This type of information may be more useful than it first appears. For instance, if you knew that likely customers lived in the Northeastern U.S, as opposed to the Midwest, you might be able to play off of regional identification to more effectively market your wares. Or if you knew that your customers shopped in large urban centers, but lived in the nearby suburbs, or dwelled primarily in zip code 32901, then you have more clues about them which can help you model new prospects even more efficiently. Why is that? New prospects have much in common with current customers, and the more you know your current customers, the more you will know your future customers.

Conclusion

Without the widespread use of databases and statistics, prospect modeling could not exist. These developments have created this technique and serve as its anchor points. Understanding what they do can allow you to craft more accurate customer profiles, which can in turn supercharge your prospect models, and then lead to even more sales.

Catenate, LLC is a web-based provider of detailed easy-to-use targeted geodemographic reports, through the Catosphere (http://www.catosphere.com) and related marketing services.

http://www.catosphere.com Wendy Cobrda, CEO

---

What Qualities Do Franchisors Need?

When I got into business I wanted to build a... Read More

Go Slow to Go Fast - Why Over 80% Of High Tech Startups Fail And What To Do About It

With billions of dollars of venture capital residing down the... Read More

How Home-Based Business Entrepreneurs Think

Too many people are trying to start their home businesses... Read More

Franchising Companies Need New Franchisee Checklists

When franchise companies are moving fast in the market place... Read More

Business Start Up Tips From Some Hearty Entrepreneurs

When's the last time someone asked you: "What's new?" If... Read More

Will Your Business Survive Without You?

I had a health scare in December.As it turns out,... Read More

Four Steps to Entrepreneurship

As more and more people start or consider starting their... Read More

Salon Marketing Using Wireless Broadband Internet Access

Our client in Chicago did, located right outside downtown too...a... Read More

Answering Why You, Why Now Critical in a Winning Business Plan

Business plans continue to be an essential element of the... Read More

Be An Entrepreneurial Artist: Paint A Picture, then Commit It to Canvas

James had an original concept and he needed an investor.... Read More

Entrepreneurship Story; Over Regulation in Franchising Part I

Jim and Sally run a successful auto business, which they... Read More

The Desire For Money, Do You Have Business Sense?

For those of us who grew up with parents who... Read More

Is Running a Business for You?

Not everyone is cut out to run a business. Not... Read More

Could a Non-Profit Structure Be Right for Your Business?

If you have a business idea, or an idea for... Read More

The Boss is DEAD!

Some of us are born into families with "it", some... Read More

5?4?3? 2...1?

A streak dating back more than three decades came to... Read More

The Role of Statistics in Prospect Modeling

Identifying prospects has come a long way since the days... Read More

Franchisor Sample Grand Opening Launch for New Franchised Outlets

It is paramount that all franchising companies work hard in... Read More

New Rules

Last week I was working with one of my small... Read More

Traits of The Successful Entrepreneur

Want to know why certain people succeed and others don't.... Read More

Solving the Million Dollar Mystery: 4 Steps To Create A Turn-Key Business

You're a smart, hardworking entrepreneur, and you're moving fast. You... Read More

Focus is the Key to a Successful Startup

The definition of a startup means you have very few... Read More

Herb Filled Pillows Make Over a Million Dollars

Lauren Rosenstadt was a single mom working at a herbcompany... Read More

Are You An Entrepreneur?

With all the buzz about everybody being an entrepreneur these... Read More

Financial Strategies for Transitioning from Salaried to Solo

7 Financial Strategies for Transitioning from Salaried to SoloA 40's... Read More

Top 10 Mistakes Entrepreneurs Make Before They Even Start

So you want to start a business. You have an... Read More

Territory Limitations Policies for Franchised Companies

All franchised companies must have Territory Limitations to maintain the... Read More

Seven Key Qualities of Successful Entrepreneurs

A recent poll conducted by Forbes magazine shows that majority... Read More

Do You Have What It Takes To Be An Entrepreneur?

Q: I am interested in starting my own business. I... Read More

If It Was Easy Everybody Would Do It

Q: I started my business about a year ago and... Read More

Have You Been Thinking About Owning Your Own Business? Or Becoming An Entrepreneur? Part 1

Almost every day, I talk with people who want to... Read More

Creativity & Entrepreneurship: The Secret to Discovering Your Purpose in Life!©

Hello Creative Entrepreneurs!In the second course on Creativity & Entrepreneurship... Read More

Chairman Greenspan and the FED, learn more you will be glad you did

So many people work their whole life to make money,... Read More