
SWITCHABLE CONSUMER MODEL
How can I market efficiently with more deliberate targeting?
Our switchable consumer model identifies those customers who prefer a competing brand but are open to switching to your brand. It also identifies At-Risk customers: those customers who prefer your brand but are open to switching to a competing brand.
From a marketing perspective, targeting the switchable and at-risk customers is much more efficient than targeting everybody.
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​We start with a brand choice model. Typically, brand preference or choice is modeled as a function of brand perceptions. Once we have this model, we calculate for each respondent individual-level brand choice probabilities. The latter are used to determine which customers have similar probabilities for two or more brands. These constitute the switchable and at-risk customers.
Check out our paper:
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Integrated competition & customer analysis in Applied Marketing Analytics, 2015, Authors: Vriens, M. & Martin Alves, A.
