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Waterfall Prediction Model Reveals How to Maximize Mobile Marketing Customer Retention by Controlling Unsubscribe Rates

Companies mentioned in this article: Waterfall Mobile

SAN FRANCISCO, CA -- (Marketwired) -- 04/01/14 -- Waterfall, a mobile and social marketing platform provider, released today its findings on the factors that affect mobile marketing unsubscribe rates. Waterfall's research explains how marketers can maximize mobile customer loyalty using a proprietary model to predict, compare and understand retention before even sending out content and calls to action. Waterfall analyzed all relevant trends and factors affecting mobile messaging, including industry, time of day and message content.

Like all direct marketing channels, unsubscribe rate is one of the most meaningful KPIs in mobile marketing. Lower unsubscribe rates deliver higher customer retention and, as a result, greater customer lifetime value. A one percent increase in customer opt-out rate can cause marketers to lose hundreds of thousands of dollars over a month's time. In addition, marketers also have to consider unsubscribe rate's impact on re-marketing versus new acquisition costs. Given that remarketing remains significantly less expensive than acquisition marketing (no matter what industry), unsubscribe rate has an even more pronounced impact on bottom line profit.

"Waterfall first started tracking mobile marketing content in 2005," said Matt Silk, co-founder and CMO of Waterfall. "With nearly 10 years of data, we took the initiative to analyze the characteristics that impact unsubscribe rates, and to what degree. Running the data through our proprietary mathematical model, marketers now have specific instructions on how to alter the various factors under their control to maximize customer retention."

Key insights from the Unsubscribe Predictor white paper include:

  • Retail subscriber lists are less prone to decay over time and the largest unsubscribe events come as a result of delivering less than optimal content. In addition, the follow-up directly after an acquisition campaign has a significant impact on the degree to which retail marketers can positively impact customer lifetime value.

  • Content containing URLʼs, phone numbers and email addresses increase the likelihood of unsubscribes. Waterfall's research concludes that customers across all verticals look for calls to action that are creative and self- contained. Unsubscribes come as a result of customers feeling like brands try to use mobile to forward them through to another channel.

  • The QSR industry is most prone to unsubscribes. Due to a lower cost of acquisition, QSR customers' allegiance to a brand is less firm. As a result, QSR marketers should execute in the face of competition, as customers seems to be more willing to switch brands.

Waterfall used various mathematical methods to conduct its research, including multinomial mixture models, topic models, lasso logistic regression and random forests. Across all models, the success rate averaged 85 percent, which demonstrates the power and accuracy of Waterfall's predictive analytics.

To download the free white paper with detailed findings, please go to choose.waterfall.com/unsubscribe-predictor.

Resources:

Follow @Waterfall on Twitter to join the mobile marketing conversation.

About Waterfall
Waterfall enables brands, agencies and technology providers to personally engage customers across SMS, MMS, Passbook, Facebook, Twitter, 2D Codes, IVR, mobile wallets, mobile coupons and push notifications. The company's mobile and social marketing platform allows clients to acquire more customers and drive repeat visits with higher purchase values using intuitive tools for interactive customer dialogues, progressive profiling and targeting, cross platform integrations and precise ROI measurement. Clients include 7-Eleven, Anheuser-Busch, Constant Contact, Electronic Arts, Merkle, NASA, Southwest Airlines, the U.S. Army and Yum! Brands. Founded in 2005 and backed by Vista Equity Partners, Waterfall is headquartered in SOMA, San Francisco, with regional offices in Downtown Austin. For more information, please visit waterfall.com.

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