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How Diapers.com Profiles Customers

Collecting such data as location-based info and product choice of an initial purchase, the predictive analytics at Quidsi, the parent company of Diapers.com, can calculate precisely just how much people will spend over the course of their tenure as Diapers.com customers.

The company's business is built upon getting moms and dads hooked on cheaper buys (rash ointment, formula) to build customer rapport that could translate to purchases of higher end goods (car seats, baby swings), conveniently shipped in the same box. This strategy has been working  -- by its fourth year, revenue at Diapers.com had grown to $181 million.

Read the whole story at Forbes.com »

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