Peter Fader

About Peter Fader

Peter Fader is the world’s thought leader in customer lifetime value and a co-founder of Zodiac. His research and mathematical models are valued by start-ups and Fortune 500 companies alike. He is a graduate of MIT, professor at the Wharton School, and has more than 25 years’ experience as a consultant to many of the world’s leading brands.

Fixing the In-Store Retail Experience: It’s all about AEIOU

For the past few years the retail industry has seen store after store shuttered as shoppers increasingly prefer the convenience of making purchases from their phones and laptops to the in-store retail experience. This recent Capgemini report found that 32% of people surveyed would rather wash dishes than go shopping in a physical retail location, [...]

By | February 23rd, 2017|

How to Become a Data-Driven Marketer in 2017

This post originally appeared on LinkedIn Pulse. As with any new year, there have been several articles posted about resolutions going into 2017. Most of the lists for marketers include a move towards more data-driven methods. However, like many resolutions, a lot of the prescriptions toward this end are vague and treated as afterthoughts, or [...]

By | January 25th, 2017|

Ditch the Product-Centric Mindset in Three Steps

In my latest for Advertising Age, I argue that a customer-centric marketing mindset is the only way forward. I even offer 3 tips on how to start: "The marker of success for any product launch seems obvious: "How much did we spend to promote this thing, and how many units did we sell?" Nike, which has [...]

By | January 5th, 2017|Tags: , |

Is Black Friday the Best Day to Meet Your Worst Customers?

Why do retailers spend so much precious energy, time, and money to court their worst customers on Black Friday? (You know, the once-a-year cherry-pickers who are only after a good deal.) If I had a magic wand that could measure the true value of each customer lined up outside Macy’s at 5AM on Black Friday, [...]

By | November 28th, 2016|

Brands, Please Stop Marketing to Millennials Already

Every day there are more stories about how brands are marketing to Millennials, using supposedly universal characteristics to describe their habits and behaviors: “Millennials want to be able to do everything on their mobile phones.” “Millennials are price-sensitive and like to comparison shop.” “Millennials want to connect with brands through social media.” Do these statements [...]

By | November 10th, 2016|

In the Future, We’ll All Have Customer Scores

HOW VALUABLE ARE YOU TO YOUR FAVORITE BRANDS? GET READY TO BE SIZED UP. In my latest for Inc, I explore a future where “customer scores” are the norm: “We're All Going to Have Customer Scores.” What’s a customer score, you ask? Well, forget loyalty cards. Forget using things like credit scores to gauge a [...]

By | October 20th, 2016|

The 1 Major Problem with Regression Analysis

The Problem with Regression Analysis Today, we know that there are real limits to what demographic data (and other non-behavioral measures) can tell you with any accuracy. But that hasn't stopped countless companies from selling the idea that the right arrangement of data points can predict almost anything you want to know about your customers. [...]

By | September 22nd, 2016|

How To Calculate CLV For Your Non-Contractual Customers

Contractual vs. Non-Contractual: Why There is No Such Thing as a One-Size-Fits-All CLV Formula It really bothers me when some self-professed expert says "Here is the definitive formula for determining customer lifetime value." It doesn't matter if it's coming from another academic, a practitioner, or if it's just some copy on the website of a [...]

By | September 15th, 2016|

Customer Triage: Why Only the ‘Right’ Customers Are Right

Not Every Customer is Worth Dropping Everything For In a hospital emergency room, patients understand the concept of triage. If you’ve got a less life-threatening injury than the guy who came in after you, you know you’re just going to have to wait. It's a completely different story on a brand’s Twitter account. In this [...]

By | September 9th, 2016|

You’re Predicting Customer Behavior Wrong – Here’s Why

Customer Behavior Is Not Linear One of the core propositions of predictive analytics is that the past is always an imperfect guide to the future. There's no place where this is more true than when looking at customer behavior. You can't look at someone who has made three purchases in the past year and say [...]

By | September 1st, 2016|