Why use Look Alike Modeling?
Businesses use Look-alike modeling on their sales leads to dramatically increase their sales while reducing the cost of making the sale. For most goods and services, an 80-20 rule applies: 80% of your sales are going to come from 20% of your prospects. In some cases, it may be more like 90-10 or even 95-5. For example, if a salesperson can focus their efforts on the 20% of the leads that contain 80% of their sales, they can bring in twice as many leads and increase their sales by 60% while doing 40% of the work. If enough leads are available, a salesperson or business could in theory make four times as many sales in the same amount of time. Businesses can also use the process to evaluate potential marketing options to ensure their marketing is reaching their best customers.
What is Look-alike Modeling?
Sometimes called cloning your customers, look-alike modeling is finding out what your customers have in common and how they are different from either the general population, or the leads that are already in your sales pipeline, but that are unlikely to become customers. For example, if you are already buying leads and you want to reduce the amount of labor involved in making the sales, you can build a model of the people who are going to be most likely to buy from you and focus your efforts on those leads, which can allow you to dramatically increase your sales. Or if you are trying to generate leads then you can use Look Alike Modeling to lower your lead cost and improve your conversion rates.
How Does Look-alike Modeling Work?
Look alike modeling works by using what is known about the leads that turn out to be buyers and the non-buyers and using algorithms and artificial intelligence to build a model.
First, the information is collected about who the current customers are, and who were leads but didn’t buy.
Then data is appended to this information: how old are the buyers, how much money do they make, do they have children, etc. A very strong model may be based on hundreds of data points that are known about the customers and the non-buyers. Businesses and salespeople don’t normally have access to that much information about their customers, so this information is appended from large national databases.
The third step is to use algorithms or Artificial Intelligence to tease out the differences, which are sometimes simple and sometimes quite complex. For example, makeup buyers tend to be women. Slightly more complicated, a cruiser style motorcycle buyer is typically a 42-year-old male. But a person who adds solar panels to their house will be homeowners with both good credit and room to borrow more money with their current income, a roof in good condition that doesn’t have shade, live in an area where the utility companies are easier to work with, where electricity costs are higher, and more. In all three of these cases and in fact in every case, by working with hundreds of data points it’s possible to predict very specific buying behavior as well as the timing of the purchases.
First, the information is collected about who the current customers are, and who were leads but didn’t buy.
Then data is appended to this information: how old are the buyers, how much money do they make, do they have children, etc. A very strong model may be based on hundreds of data points that are known about the customers and the non-buyers. Businesses and salespeople don’t normally have access to that much information about their customers, so this information is appended from large national databases.
The third step is to use algorithms or Artificial Intelligence to tease out the differences, which are sometimes simple and sometimes quite complex. For example, makeup buyers tend to be women. Slightly more complicated, a cruiser style motorcycle buyer is typically a 42-year-old male. But a person who adds solar panels to their house will be homeowners with both good credit and room to borrow more money with their current income, a roof in good condition that doesn’t have shade, live in an area where the utility companies are easier to work with, where electricity costs are higher, and more. In all three of these cases and in fact in every case, by working with hundreds of data points it’s possible to predict very specific buying behavior as well as the timing of the purchases.
How do we help our clients use Look Alike Modeling
to increase their sales?
The cheapest and fastest way to increase your sales is to look at the leads that you already have, prioritize your efforts on the leads that most likely to buy, and to look at the leads that you have given up on and determine which of them are worth continuing to go after.
Based on the information we have in our database of over a trillion data points, we can not only predict who is most likely to become a buyer and the relative chances of them buying, we can predict when those future buyers are most likely to answer the phone at the individual level. We know that Bob Smith at 1123 West Cherry Street is most likely to answer the phone at 10am next Thursday, and we provide that information on every prospect in your database.
We can then simply provide you with that information so you can manually call them, we can pop them into your dialer at just the right moment so you call them when they are most likely to answer the phone or we can actually make those dials for you and transfer the live calls directly to your salespeople. This further increases your contact rate because the carriers are being very aggressive about not only displaying Spam Likely when they have complaints about particular phone number, but also just because the phone number is doing a lot of dials very fast.
We slow dial the leads, just once for each record, at the best possible moment to maximize contact rates, which never gives the carriers a reason to suppress or label our calls. Where you might be currently calling a lead anywhere from five to fifty times, we call each number just once to achieve the same or better results.
We can even just call the leads that are likely to buy that you have given up on, and still deliver excellent contact rates.
Based on the information we have in our database of over a trillion data points, we can not only predict who is most likely to become a buyer and the relative chances of them buying, we can predict when those future buyers are most likely to answer the phone at the individual level. We know that Bob Smith at 1123 West Cherry Street is most likely to answer the phone at 10am next Thursday, and we provide that information on every prospect in your database.
We can then simply provide you with that information so you can manually call them, we can pop them into your dialer at just the right moment so you call them when they are most likely to answer the phone or we can actually make those dials for you and transfer the live calls directly to your salespeople. This further increases your contact rate because the carriers are being very aggressive about not only displaying Spam Likely when they have complaints about particular phone number, but also just because the phone number is doing a lot of dials very fast.
We slow dial the leads, just once for each record, at the best possible moment to maximize contact rates, which never gives the carriers a reason to suppress or label our calls. Where you might be currently calling a lead anywhere from five to fifty times, we call each number just once to achieve the same or better results.
We can even just call the leads that are likely to buy that you have given up on, and still deliver excellent contact rates.
How do I know it is a good idea
to use Look Alike Modeling?
You can’t screw this up. We are going to interview you and make sure this is a good fit. Once we verify that this is a good fit, we aren’t going to ask you for a penny to try this, and we aren’t going to ask for any commitment; this is on us, not on you. We will use your own data, your sales and your existing leads and your past leads combined with a database of over a trillion data points on consumer households and a proven Artificial Intelligence system to build a model of your best leads. Then we will let you experience the improved results; the increase in contact rate, higher close rates and increased profits, then and only then will we work with you to put together a no-lose scenario for you that creates an ongoing process that continues to give you an increase in profits with less labor required to make the sales. You can’t lose.
This sounds amazing but I’m a small business,
I probably don’t qualify for such a sweet deal, right?
Look, of course we want to work with bigger companies, everyone does. But we don’t wake up in the morning thinking about how to make billionaires into multibillionaires. If you have at least 10,000 leads from the past six months with the outcomes that we can work our magic on, that’s enough to start, although of course more is always better. Even if you don’t have 10,000 or more leads available we may be able to help you, depending on your situation. For now, just fill out the form below or call us at 618-589-3886 and let’s talk about your situation and how we can help you grow your business.