Demand Ranking™ – When and Where to Sleuth

Posted by: Mark Upson

So when and where should you do the deep dive? Demand Rating™ and Demand Ranking™ offer insights to determine when and where analysis is warranted.

Evaluating the range on Demand Ratings, the difference between the high and low, provides a uniformity measure of subscriber loyalty. In general, the tighter the range, the more uniform the subscriber loyalty is, and the more uniform the loyalty the less time should be spent comparing subscribers to each other.

Outliers, however, can throw a wrench into the works by creating a big range and potentially raising unnecessary analysis. Demand Rankings increase the accuracy of a range by filtering which Demand Ratings should be included. Within a subscriber segment, the Demand Rating with a rank of 1.0 should be the high, and the Demand Rating with a rank of -1.0 should be the low. Using these two ratings to create a calibrated range eliminates the outliers that are not representative of the subscriber base in general. The calibrated range can be assessed on uniformity and the need for further analysis.

So what do you do with the outliers? As you can imagine, outliers prove to be an important source of clues to loyalty drivers. Much like the previously mentioned cluster analysis for high ranking and low ranking subscribers, outliers can be compared to the segment in general to identify additional loyalty drivers.

Demand Ranking extends the power of Demand Ratings. Whereas Demand Rating gives you a measure of subscriber loyalty, Demand Ranking lets you understand the drivers behind subscriber loyalty.

Closing out the series on Demand Rating and Rankings it is important to underscore the importance of firmographics. Firmographics provide the basis for tracking behavior needed in ratings and for segmentation needed by rankings. In the next blog series, Pete will examine the challenges and strategies to accurate firmographics.