Commentary

Predictive Technology: Going Beyond CPA

Speaking at the OMMA LA conference, Sujay Kar, head of data science of TechStyle Fashion Group, says predictive technology is a key for the marketing efforts of its fashion business -- even allowing it to spend more on advertising.

The group, whose brands include Fabletics, JustFab, ShoeDazzle and FabKids, has 4 million VIP members, 80% repeat consumers, and 65 million products shipped.

TechStyle spends close to $180 million in advertising -- with 24,000 active creatives on Facebook, 36 unique TV commercials (150 iterations that are tested), and 3,300 email creatives.

Kar says the company can predict consumer behavior and its value over a number of years.

“It has been harder to optimize on CPA [cost per acquisition/action]; CPAs are going up,” he says. But Kar says the company uses other measures, such as lifetime value of the customer, to allow it to shift advertising. Some of this comes from third party data providers.

As a result, he says “we can spend 20% more in a particular channel.” He says these predictive measures go beyond cost per action.

 
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