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Table of contents
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Table of contents for
Data-Driven Business Models
by
Alan Weber
Preface
CHAPTER 1:
Business Models: What They Are, How They Work, Why They Are Important
Elements of a Business Model
Business Modeling and Business Models
Fact-Based Decision Making
Cross-Silo Cooperation
Types of Business Models
Four Basic Business Model Structures
Autonomous Business Models
Business Models in the Environment
Creating and Competing with Business Models
Understanding the Internal Culture
Describing the Unique Value Proposition (UVP)
Information Flow Within the Business Model
Defining Which Behaviors Can Be Measured
CHAPTER 2:
Describing the Customers
Profiling
Mapping as a Profile Tool
Profit-Based Segmentation
Predictive Modeling
Descriptive Modeling
Multi-Channel Profiling
Overlay Data
Survey Data
Learning from Our Customers
CHAPTER 3:
Describing What Customers Do
Tracking Behavior
Measuring Lift
Break-Even(s)
Case Study: Variable Break-Even
Profitability by Campaign
Case Study: Profitability by Campaign
Predictive Modeling
Advocates, Buyers, and Tryers
RFM vs. RFA Analyses
Case Study: Recency-Frequency-Average Order (RFA)
CHAPTER 4:
Quantifying Customer Behavior
Lifetime Value
Case Study: Lifetime Value
Customer Value
Customer Value Index
Action Based on a Customer Value Index
CHAPTER 5:
Building Customer Data Files
The Progression of an Analysis
Merge/Purge Is the Foundation
Data Checks
Relational Versus Flat Databases
Data Format Versus Data Content
Different Data Sources Equal Different Data Meanings
Realistic Time-Frames
Case Study: Business-to-Business Medical Equipment Manufacturer
Case Study: Consumer Cataloger
Rapid Development Approach
CHAPTER 6:
Building a Contact Strategy
Segmentation Is Tactical; Marketing Is Strategic
Segmentation by Frequency of Contact
Understanding House File Segmentation
Who Should Be Contacted?
What Makes Segments Different?
What Offers Are Likely to Be Appropriate?
Which Customers AreLikely to Be Most Valuable?
When Should Contacts Be Made?
Where Do Best Customers Come From?
Which Media Are Most Effective in Making Contacts?
House File Inventory
Quantifying the House File Inventory
Building Budgets and Sales Projections Using the House File Inventory
CHAPTER 7:
The Process of Building a Business Model
Building a Team
Top Management as Director
Investors
Facilitators
Internal Lead Roles
Support Roles
Employees’Personal and Professional Strengths
Business Model Situation Analysis
Initial Review
Step One: Employ Database Marketing Methodology
Step Two: Load Data
Step Three: Data Check
Step Four: Data Hygiene
Step Five: Set Data Dictionary
Step Six: Create Reports Describing the Data
Step Seven: Data Mining
Step Eight: Exploring and Defining Relationships
Step Nine: Create Descriptive Statistics
Step Ten: Predictive and Descriptive Modeling
Step Eleven: Create Final Report Set and Define Update Report Set
Step Twelve: Develop and Implement Strategy Based on Findings
Step Thirteen: Adjustment Period and Scheduled Updates
Step Fourteen: Application Development
CHAPTER 8:
Changing the Business Model
The Pressure for Change
Hysteresis
Adoption Hurdles
Disruptive Technology
Disruptive Competition
Disruptive Marketplace
The Importance of Management Push
Obstacles to Change
Pressure for Immediate Success
Organization Charts Reflect Strategy
Managing Rewards and Measurements
Agents of Change Versus Agents of Inertia
Knowledge of the Business of the Enterprise Is Key
Driving Change
Organic Growth
Partnering
Acquisition
Creating a Subsidiary
Divestment
Specialization
New Media Channels
New Sales Channels
New Constituent Relationships
Consummating the Sale
Pricing
CHAPTER 9:
Case Studies
How Profiling Changed a Business Model
How Cluster Analysis Changed a Business Model
How Profit-Based Segmentation Changed a Business Model
How Predicative Modeling Improved
Subscription Marketing Effectiveness
Index
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