Proclivity: A Software Solution To A Marketer's Problem

As readers of this blog know, I can be a bit of a skeptic when it comes to e-commerce marketing technologies created by techies or scientists. I feel that such marketing software is a little bit like diet pills--they promise a cure-all, but all they end up delivering is marketing hype.

So, as a skeptic of such things, I started reading an article in Fast Company about a company called Proclivity, founded by a genetics scientist turned software impresario, with my usual sideways glance.

Through description and testimonial, the article began to convince me that science is indeed advancing, and that Proclivity might have a superior product to much that is on the market.

Proclivity sorts through the data left by millions of anonymous people clicking around a company's web site, and predicts who's likely to buy which products, when, and at what price.

"When a vendor comes to you using all those words -- 'integration,' 'low-tech,' 'turnkey solution' -- it's scary," says Larry Promisel, VP of e-commerce at Barneys (one of Proclivity's clients). He is bombarded by sales pitches from similar companies, many of which track basic customer patterns. But Proclivity's software brought all of the information together, and took the further step of predicting customer behavior. "We tried to trip up their system," Promisel says. "Sheldon would suggest which designers would be big for us, and we'd separately make our own judgment based on the store. And he was right." Once the firm was hired, Proclivity spent two months collecting data -- letting the computer model learn (the early predictions were sometimes less than accurate) -- and another four months testing. "We had to teach them a bit about luxury retail. They butchered the names of our designers," Promisel chuckles, citing Dolce & Gabbana and Manolo Blahnik as victims.

One the thing that struck me as I read that article is the significance of the role of marketer in making such software successful. Simply having the ability to precisely target customers in its email campaigns is not enough. A marketer's role is to take that data, and nuturer the customer relationship. Just having the consumer behavior intelligence is not enough--being committed to using it to build a brand is an entirely different proposition.

As Proclivity founder Sheldon Gilbert says, "Scientists understand how complex systems work...I'm a pattern hunter, so I created a system that was looking for patterns and was adaptive and self-learning."

So, after the patterns have been laid out, it is up to the marketer to take those patterns and create advertising messages that intrigue and entice customers, and to follow-up with a brand experience that keeps them coming back.

Thanks to Proclivity, retailer' Barneys now knows what time people like to buy (lunchtime) and which products are likely to sell well in pairs (handbags and wallets). And based on Proclivity's feedback, Barneys also redesigned its e-campaign formats. Unlike the kind that cram in 5 to 12 products ("Spring Tie Sale!"), a typical Barneys email sticks with one product from one designer: "Manolo Blahnik: Pretty in Pink" features an image of a sparkling pink high heel on a pedestal.

That's it. That's the marketer's secret sauce.

I'd say I'm almost a believer now.

More on Proclivity in Men's Vogue

Comments

[John Stewart]

Analyzing the website visitor is the next evolution in website marketing.
Also for B2B websites, where visitors can be identified by company name.

Until now marketeers could only use:
- Online registration forms, with about 2% of all the visitors leaving their contact details
- Send out massive amounts of emails, which is not really efficient (spam?).

Using a website visitor identification solution, the visitor is not staying incognito as the service reveals much information about him.
And his behavior and click path allows for visitor qualification as lead or as not interesting.

Once these visiting companies identified, sending emails or cold calling will be more effective as these companies are already interested in your services or products.

There are several web services available: just Google "website visitor identification" and look for solutions that reveal company name, not just web analytic solutions.