This report provides a snapshot of the customer base using six analytical techniques: profiles, locations, products purchased, transactions, attrition, and acquisition targets. It analyzes sectors, company sizes, geographic locations, purchasing histories, spending behaviors, and which customers were lost in the last year. The goal is to give the business insights into who their best prospects are to help improve targeting, sales distribution, and prevent customer churn.

1. Customer
Intelligence Report

2. Report Contents
LBM’s Customer Intelligence report is intended to provide you with a
snapshot of your current customer base. This snapshot utilises six different
analytical techniques to provide your business with a brief yet informative
overview of your customers.
The contents of the report are summarised below
Profile Page 3
This section examines your relative penetration in different sectors and companies
to outline who your best acquisition targets are.
Location Page 4
This part of the report illustrates the location of your customers, and has many
applications including sales force distribution, targeted regional marketing or
customer service activity.
Product Page 5
Product analysis examines what your customers are buying from you. Insight
gleamed from this will help your business target customers based on what they are
most likely to buy.
Transactional Page 6
This part examines how much, how recently and how often your customers spend
with you, and will help you identify and target your customers by these metrics.
Attrition Page 7
How many customers have you lost in the last twelve months ? This section will tell
you, allowing you to asses which sectors you need to target to prevent that churn
from happening
2

3. Better Acquisition – Profile Analysis
LBM Sector Description UK Market Customers Index
Agriculture, Hunting and Forestry 131,436 1,208 178
Hotels & Restaurants 288,111 2,460 166 The Index score is a
Wholesale & Retail 766,960 6,378 161 measure of the
Fishing 2,165 17 152 relative success in
Mining & Quarrying 4,212 25 115 each category.
Manufacturing 394,215 2,267 112
Construction 346,498 1,979 111
As an example, you
Transport, Storage and Communication 190,094 1,076 110 would expect a
Electricity, Gas and Water Supply 5,346 28 102 record in a category
Other Community, Social and Personal Service Activities 472,858 2,048 84 with an Index score
Public Admin and Defence; Compulsory Social Security 34,560 136 76 of 200 to be twice as
Education 129,336 343 51 receptive as those in
Real Estate, Renting and Business Services 712,618 1,455 40 a category with an
Health & Social Work 257,259 394 30 Index score of 100
Financial Intermediation 97,080 108 22
Unknown 32,330 31 19
Private Households Employing Staff 3,544 1 5
Extra-Territorial Organisation and Bodies 693 0 0
Total 3,869,315 19,954
Sector based analysis can be utilised for targeting prospect activity,
and combined with other relevant variables to create an effective
market segmentation.
Turnover Band UK Market Customers Index
<£50k 288,045 1,218 82
£50k - £100k 339,498 1,762 101 Predictive models can help to build a
£100k - £250k 1,043,033 5,015 93
picture of your ideal customer.
£250k - £500k 594,185 2,833 92
£500k - £1M 608,617 2,730 87 Turnover is just one of many
£1M - £5M 577,249 3,829 129 different modelled business
£5M - £10M 68,232 773 220
variables LBM can utilise to build
£10M - £20M 30,148 463 298
£20M - £50M 18,857 353 363 that picture.
£50M+ 10,248 236 447
Total 3,869,315 19,954 0
Employee Band UK Market Customers Index
The smaller end of the market 1 to 5 2,545,437 11,333 86
typically contains the most 6 to 10 500,038 2,964 115
11 to 19 228,152 1,482 126
businesses, but is that your ideal 20 to 49 242,365 1,925 154
target market? LBM’s Profile 50 to 99 70,858 850 233
Analysis can give you the ability to 100 to 199 32,511 491 293
200+ 32,028 624 378
identify your best prospects. Unknown 217,926 285 25
Total 3,869,315 19,954 0
3

4. Improved targeting and efficiency – Location Analysis
The ability to see where your
customers are located enables
your business to focus sales
activity on the areas of highest
need. Conversely, being able to
illustrate where your prospects
are located, allows your sales
function to efficiently service
that requirement.
Maps can be adapted to not
only illustrate the location
of customers or prospects,
but also to inform strategic
sales activity by creating
bespoke sales territories.
Customised maps can be created
that function from a UK wide
level all the way down to Street
level.
4

5. Sell More to Customers – Product Analysis
Customer Product 1 Product 2 Product 3 Product 4 Product 5 Product 6
998180 0 1 1 1 1 1
998180 0 1 1 1 1 1
15998075 0 0 1 1 1 0
1714764 0 0 1 1 1 0
40762572 0 0 0 0 0 1
40615420 0 0 1 1 0 0
4195151 1 1 1 1 1 0
Customer baskets tell you what products are bought together. This can be
used to score customers with the additional product they are most likely to
buy. This can be used to optimise cross-sell and POP marketing.
Totals Count
Customers who have only
Number of records 5
bought one product can be
Number of baskets 10 targeted for cross-sell activity.
Average number of items per basket 5 Customers who buy multiple
products can be identified and
Total Number of products sold 15
targeted with specific offers.
Number of different Products sold 7
Product Combinations Count
No products 2,000
Product 1; Product 2; Product 3 3,000
Analysing what
Product 4; Product 5; Product 6; Product 7 50
products combinations
Product 2; Product 9; Product 10 20
are bought together
Product 11; Product 18 5
allows your business to
Product 13; Product 4; Product 52 5 create tailored, product
Product 16; Product 1; Product 36; Product 19 5 driven marketing.
Product 2; Product 6 5
Product 99; Product 50 2
Product 21; Product 76 1
5

6. Improving Marketing ROI – Transactional Analysis
Recency Score
3,500 Target customers for reactivation
Number of Customers
3,000 activity or for that all important
2,500 repeat purchase. Using Recency, you
2,000
can identify customers who bought
1,500
from you last month, and also those
1,000
500
whose last purchase was 6, 9 or 12
- months ago.
Least Recent 2 3 4 Most Recent
Frequency Score
5,000
Having the ability to identify and
Number of Customers
4,000
target customers based on how many
times they have purchased from you, 3,000
enables your marketing to reflect 2,000
customer behaviour. Combine with 1,000
Recency for real targeting power. -
Least Freq 2 3 4 Most Freq
Monetary Score
2,600
Utilising Monetary segments, you can
Number of Customers
2,550
identify and target customers based
2,500 on spend levels over time. Combine
with Frequency for a true average
2,450
spend, and? Recency for absolute
or
2,400 targeting power.
Least Spend 2 3 4 Most Spend
Recency Score
Monetary Frequency Score
Grand Total
With combined RFM scores you
Score Least Freq Most Freq can target customers based on
Least Spend 2,769 776 3,545 how many times someone has
Least Recent
Most Spend 1,367 1,427 2,794
purchased within a certain period
Least Spend 1,733 1,017 2,750
Most Recent of time, split by the amount of
Most Spend 1,206 2,294 3,500
Total 7,075 5,514 12,589 money they spent.
This allows your business to target customers for winback campaigns using
Recency flags, welcome campaigns using Frequency flags, or development
campaigns using Monetary scores. Combining RFM scores allows you to drill
down further into your customer base to create a comprehensive and
segmented view of customer behaviour
6

7. Preventing Customer Loss – Churn Analysis
Customer Type Count %
Existing 18,451 63.42%
Identifying how many customers you
have lost in the last 12 months allows
Lapsed 797 2.74%
your business to act on attrition with
New 9,845 33.84%
a pro-active marketing strategy
Grand Total 29,093 100%
designed to reduce churn, and
increase retention.
Churn Rate 2.90%
Acquisition rate 34.79%
Acquisition and churn of Customers
Extra-Territorial Organisation and Bodies
Private Households Employing Staff
Other Community, Social and Personal Service Activities
Health & Social Work
Education
Public Admin and Defence; Compulsory Social Security
Real Estate, Renting and Business Services
Financial Intermediation
Transport, Storage and Communication
Hotels & Restaurants
Wholesale & Retail
Construction
Electricity, Gas and Water Supply
Manufacturing
Acquisition
Mining & Quarrying
Churn
Fishing
Agriculture, Hunting and Forestry
0% 10% 20% 30% 40% 50%
By using tailored churn analysis and modelling, your business can identify which customers in
which areas require your attention, allowing you to focus your customer targeting where it
can be most effective.
7

8. Why LBM ?
LBM offer a wide range of lifecycle customer solutions, all designed to get the
best results and highest possible return on investment. From Customer
Intelligence to bespoke contact centre campaigns, LBM’s approach to
Intelligent Contact will ensure the success of your next marketing campaign.
Customer Intelligence is an essential element in any successful organisation.
Knowing more about your customers and potential customers gives your
organisation the edge in what is becoming a more complex and confusing
marketplace.
To find out more about LBM, email us at intelligentcontact@lbm.co.uk or visit
www.lbm.co.uk. If you would like to discuss the content of this report, please
contact the Analytics Team on 0161 616 0631.
8