Marketing: speed can sometimes be more valuable than accuracy

By October 01, 2012
group of people gathered on a target

Canopy Labs is a San Francisco startup that does automated customer modeling and segments customer base in real-time. These rankings let brands customize offers or sales and increase revenue by building better lead lists.

It is hard to imagine any large-scale marketing operation without customer analytics. Canopy Labs has built campaigns and strategies for numerous companies and has concentrated its platform’s strengths around quick customer targeting, a simple user experience for its clients, and encouraging them to keeping their big picture (a specific end goal) in mind. The San Francisco-based startup’s platform hopes to set itself apart with this philosophy while giving brands and marketers the tools to automate customer modeling, build customer-level rankings and increase sales and revenue with higher conversions. The company’s product is still in private beta, but currently is targeting mid-sized businesses for its product, a category that formerly would pay to develop their own tools.

Real-time segmentation

The Canopy Labs platform aggregates data across sales channels, online services and internal databases. The system automates customer modeling and updates segments, rankings and scores in real-time in what they plan to be a scalable workflow. So far, the platform has analyzed over 3 million customers for their clients, providing segmentation to marketers that prioritizes customers based on their likelihood to engage or purchase. One of Canopy Labs’ clients reported a 25 percent increase in leads for specific offers after they segmented their email into three parts to cater different offers to their customer base.

Fast analysis and targeting can be valuable at the expense of accuracy 

While most tools value perfect accuracy, Canopy Labs identifies speed as a much more valuable marketing benefit; their tool prioritizes speed “when analyzing and targeting customers,” and not “miss opportunities.” A case study supports this theory of speed - one retail institution had a significant store of transactions and demographic data for each customer. By combining the data, Canopy Labs delivered a “holistic view of every customer,” built propensity model, and the lead list was delivered to their call center, where conversions were increased by 200 percenton the same day the list was used.

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