See our complete guide: [How predictive lead scoring works — and why it outperforms traditional methods](/blog/predictive-lead-scoring-b2c)

To salespeople and marketers, Salesforce is a very well-known commodity. Not only is it a CRM, but it has a suite of convenient addons and features for practically every use case under the sun, from forecasting to predictive lead scoring. Since these are addons and features directly within Salesforce, and they’re easy to integrate into the Salesforce part of your workflows.

In this article, we’re going to walk through the drawbacks of Einstein lead scoring (especially for B2C companies), and how Faraday’s approach to [B2C lead scoring](/blog/predictive-lead-scoring-b2c) offers faster, more versatile, and more holistic predictive lead scores that make use of all your data, not just what you have in your Salesforce account.

## Einstein lead scoring doesn’t quite cut it for B2C companies

While the seemingly just-add-it-on implementation of Einstein lead scoring is without a doubt eye-catching, the drawbacks that come with simple addons are inevitable when compared to feature-complete products that are built to accomplish the same task. The shortcut is rarely worth the time and effort invested when the results are often lackluster. Einstein lead scoring falls short for a few different reasons:

- **The cold start problem**: Einstein can’t make predictions on net new leads. It requires time for data to be collected on the individual before a score can be assigned. This leaves you either sitting on your hands while the lead is looking around at your competitors.
- **Limited data**: Data is the foundation of any effective revenue-driving strategy. With Einstein, only your first-party data is able to be used. For leads that you already have data on, you’ll have a rough idea of how they’ve interacted with your brand, but you won’t know what kind of person they are, how they shop, or what makes them tick.
- **Labor-intensive**: If you have non-sales data in disparate systems, like product data in Amplitude or Mixpanel, you’ll need to spend a significant amount of time manually plugging in your key metrics & data points to map out how leads should be scored.

## What’s the best B2C lead scoring software for Salesforce?

Here's the thing: the best lead scoring software is purpose-built, like Faraday, not an add-on, like Einstein. If you take the shortcut, it’ll show signs of rust quickly, leaving you scrambling for an alternative and wondering why you ever bothered in the first place. The good news is that Faraday offers a suite of customer predictions for every stage of the customer journey - one of which is lead scoring.

### Solving the cold start problem

Like I mentioned earlier, Einstein lead scoring leaves your reps sitting on their hands as new leads come in. You have no data on them, so you don’t know how to engage with them–or if they’re worth engaging at all. This delay leaves your leads plenty of time to check out your competitors’ offers, and to bite at the [personalized direct mail](/blog/personalized-direct-mail-strategy) postcard they just got in the mail.

Using Faraday, you can solve the [cold start problem](https://blog.hive.co/solving-the-problem-of-cold-start-ecommerce-product-recommendations/#) by scoring leads with propensity models for their likelihood to convert as soon as they come in, enabling your reps to act with them immediately. Whether it’s to prioritize the lead because their predictive lead score is high, or to disregard because it’s low, your reps’ time–their most valuable asset–is being used effectively. Lead prioritization is clear from the minute the lead first interacts with your brand, made possible by unifying your data with Faraday’s.

### Built-in consumer data

Your first-party data alone isn’t enough to not only solve the cold start problem, but also give you clear indicators for how to engage leads you already know about. You’re unlikely to know what the leads’ shopping preferences are, what kind of home they have, or their annual household income. With Faraday’s hundreds of [built-in, cookieless consumer attributes](/features/data), including demographics, psychographics, financials, property information, and more, every interaction you have with your best-scoring leads can be tailored just right.

Using this data in conjunction with your own lead data, you can even [personalize your outreach](/blog/predictive-personalization-machine-learning) with copy & creative that’s resonant with each individual, leaving you with campaigns that are both highly targeted to your best leads, and highly personalized for maximum impact. Use predictive personas to enable talk track alignment so that all of your reps hit the same key notes on every lead where it’s relevant. Similarly, you might find certain reps more effective than others with certain personas, leaving clear coaching opportunities to bring others into the fold. goals, it’s worth the effort to retain them.

### Sits anywhere in your stack

While Einstein lead scoring involves pulling your disparate data into Salesforce from various pieces of software, Faraday sits [anywhere in your stack](/integrations) that you need it to. Your data’s easily ingested from any software you use, used to make accurate, impactful customer predictions, and deployed back to [Salesforce](/predict/pipelines/lead_scores_in_salesforce) just as easily.

## How to implement lead scoring in Salesforce with Faraday

With Faraday, you can implement predictive lead scoring in Salesforce in a day, including scoring brand new leads in real-time as they come in–something Einstein lead scoring can’t do–regardless of where your data is. Here’s how it works.

### Upload your lead and customer data from Salesforce

To start, you plug in your data by mapping your data fields to Faraday properties. You’ll match customer & lead data like names, emails, and addresses to match their identities into Faraday.

[![Faraday dataset](/images/blog/einstein_lead_scoring/einstein-lead-scoring-dataset.png)](/images/blog/einstein_lead_scoring/einstein-lead-scoring-dataset.png)

Then, in cohorts, you’ll utilize both your data and Faraday’s built-in consumer data to group your data into interesting groups of people, which in this case are your [customers](/docs/cohorts/customers_from_salesforce) and [leads](/docs/cohorts/leads_from_salesforce).

[![Faraday leads cohort](/images/blog/einstein_lead_scoring/einstein-lead-scoring-cohort.png)](/images/blog/einstein_lead_scoring/einstein-lead-scoring-cohort.png)

### Predict personas to reveal rich insights

If you really want to make your brand’s engagement stand out to your leads, you can predict personas to reveal who your leads are as people and as consumers. Through trait breakdowns like age, gender, household income, hobbies, shopping styles, and more, you can turn your newest lead, Jane Doe, whom you know nothing about, into Jane Doe, married mother of 3, Amazon-centric shopper, and dog mom with a household income of \$200k.

Your talk tracks & creative couldn’t be easier & more resonant.

[![Faraday customer personas](/images/blog/einstein_lead_scoring/einstein-lead-scoring-personas.png)](/images/blog/einstein_lead_scoring/einstein-lead-scoring-personas.png)

### Build a predictive outcome to score leads in Salesforce

Next, you’ll build your predictive outcome by defining your attainment cohort as your **customers**, as that’s your prediction’s finish line–you want more people like your customers. Here, you’re defining the propensity to convert, or the likelihood that a lead is going to convert, so you’ll choose your **leads** as your eligibility cohort.

[![Faraday lead conversion outcome](/images/blog/einstein_lead_scoring/einstein-lead-scoring-outcome.png)](/images/blog/einstein_lead_scoring/einstein-lead-scoring-outcome.png)

With your lead scoring prediction defined, create a pipeline to make it actionable by choosing your **likelihood to convert** outcome and (optionally) your **persona set** as your payload, and your **leads** cohort as your population to include.

[![Faraday lead scoring pipeline](/images/blog/einstein_lead_scoring/einstein-lead-scoring-pipeline.png)](/images/blog/einstein_lead_scoring/einstein-lead-scoring-pipeline.png)

Next, Faraday’s machine learning algorithms then get to work predicting how likely people in your leads cohort are to convert and become customers, then they’re assigned scores on an individual basis that you can filter & activate on.

### Deploy predictive lead scores back into your Salesforce instance

With your predictions made, deploy your predictive lead scores to your Salesforce account so that each lead is enriched with their predictive lead score–and optionally, their predictive persona–so that, at-a-glance, your reps know exactly how and when to engage for the highest impact in order to drive revenue through conversions.

[![Faraday lead scores in Salesforce](/images/blog/einstein_lead_scoring/einstein-lead-scoring-salesforce.png)](/images/blog/einstein_lead_scoring/einstein-lead-scoring-salesforce.png)

**Ready to try it out? [Create a free account](https://faraday.ai/signup).**

Salesforce’s Einstein lead scoring addon is more attractive on paper than in practice. Learn how an alternative enables you to incorporate more than just lead data, while also scoring net new leads.

An Einstein lead scoring alternative for B2C companies on Salesforce

**See our complete guide:** [Personalization tactics that actually drive conversions](/blog/personalization-tactics-that-drive-conversions).

---

## What is predictive personalization?

Many brands are familiar with personalization, and the positive impact it can have on your marketing strategy. In recent years, advancements in machine learning and data activation have opened the door for more [authentic personalization at scale](/blog/unlocking-authentic-personalization-at-scale).

Predictive personalization is a term that involves using various machine learning predictions to create customized, personalized experiences for customers, leads, prospects, or any other interesting group of people. It enhances [personalization strategies across the entire customer journey](/blog/personalization-strategies-across-buyers-journey). Whether you’re focusing on–or looking to incorporate–product recommendations, lead scoring, churn prevention, repeat purchasers, or something else altogether, predictive personalization strengthens those strategies and provides clear indicators for how to engage so that every interaction your customers have with your brand is a delight.

## Benefits of using predictive personalization for personalization at scale

On its own, creating personalized content that’s relevant to each individual customer is a long, data-hungry process. Using machine learning for predictive personalization, however, simplifies the process and provides an array of benefits that enable you to achieve personalization at scale.

### Enhanced insights through vivid consumer data

Your first-party customer data includes key data points that describe your people your brand is interested in–your customers, leads, prospects, and more–through their interactions with your brand. This can help you identify the products & services that they’re interested in, so that you can create offers that are relevant to them.

Predictive personalization involves the unification of your first-party customer data with [rich, third-party, cookieless consumer data](/features/data)–after all, your customers exist outside of interactions with your brand. The end-result is a clear 360º view of your customers, leads, prospects, and any other group of people you’re interested in that gives you a firm understanding of who your customers are and what they’re like. [Insights](/blog/how-to-create-a-customer-insight-strategy) via demographics, psychographics, financials, hobbies, and more give you easy guidance for how to personalize your engagement in a highly resonant way.

### Proactive engagement

Regardless of the interaction in question, it’s always better, if given the option, to be proactive rather than reactive. Predictive personalization gives you the ability to personalize your content & creative before you’ve even interacted. You’ll find insights like how likely they are to churn and how much they’re likely to spend via their predicted LTV, so that you’re always one step ahead of the next action your customers are going to take.

[![Predictive personalization mock](/images/blog/predictive-personalization-mock.png)](/images/blog/predictive-personalization-mock.png)

### Personalization at scale

By using machine learning for predictive personalization, the effort involved in scaling personalization across your entire customer base–past, present, and future–isn’t as herculean as it sounds. Machine learning algorithms can segment your customers into bespoke, cohesive personas that you can deploy [anywhere in your stack](/integrations), allowing you to create individualized, personalized campaigns for any given subgroup of people you’re interested in.

### Internal talk track alignment

While the benefits of predictive personalization on external-facing engagement are clear–[see how Sealed did it](/blog/sealed-lead-optimization)–there’s an additional benefit that’s equally as impactful: internal alignment of understanding who your customers are, and what makes them tick. Personas enable you to craft clear talk tracks on a persona-level basis so that, regardless of salesperson, prospects and leads will receive content that highlights the same resonant features. Predictive personalization can also help identify which of your salespeople are best at speaking to specific personas so that you can set priorities and internal coaching appropriately.

## Implementing predictive personalization with Faraday

Customer prediction platforms like Faraday allow you to implement predictive personalization with ease–without a data science degree, and without a single line of code. Let’s dive into Faraday to see just how easy it is.

### Connect data and define customers

First, you’ll map your customer data to the matching Faraday properties. Then, in cohorts, you’ll build a cohort for your [current customers](/docs/cohorts/customers_from_hosted_csv) by defining the event that makes them a customer, such as a purchase.

[![Predictive personalization customers cohort](/images/blog/predictive-personalization-cohort.png)](/images/blog/predictive-personalization-cohort.png)

### Build personas to reveal rich insights to enable predictive personalization

Predict personas with the help of Faraday’s rich, cookieless, opt-in consumer data on top of your own first-party customer data. Discover trait breakdowns like hobbies, shopping styles, gender, household income, and more to understand the nuances of how different portions of your customer base stand apart from each other. These breakdowns give you crystal-clear guidance on how to speak to your customers in a way that makes them feel understood.

[![Predictive personalization customer personas](/images/blog/predictive-personalization-personas.png)](/images/blog/predictive-personalization-personas.png)

### Use customer predictions to create proactive, relevant campaigns

Take predictive personalization to the next level by predicting likelihood to churn, repeat purchase, and more so that your content is not only personalized to match who your customers are, but that it’s also attuned to how they’ve interacted with–or _will_ interact with–your brand, and at any scale you need, wherever in your stack you need.

**Ready to try predictive personalization out? [Create a free account](https://faraday.ai/signup).**

Explore the benefits of predictive personalization & the impact it can have on your marketing strategy through rich, effective customer insights.

Predictive personalization: Using machine learning to personalize customer experiences

## What is direct mail marketing?

Direct mail marketing is the act of a brand engaging with its customers and prospects through physical mail. It can come in various forms, from postcards, to letters, to branded water bottles, and everything in between. The most effective direct mail campaigns are highly personalized to resonate with a brand’s customers. Before email and digital engagement became the norm, direct mail was one of the best ways to reach your customers. While digital has since pushed direct mail marketing to the side, it’s had a resurgence in recent years because, in the age of digital media, personalized direct mail _stands out_–assuming you’ve done your due diligence and personalized it appropriately to match your customers’ wants and needs. Take [PostcardMania](https://www.postcardmania.com/blog/direct-mail-statistics-2023) for example, who has seen their revenue grow 17.56% each year post-pandemic in comparison to 4.67% pre-pandemic.

## Benefits of personalized direct mail

Personalized direct mail has a variety of benefits over digital to prove that it’s a great supplement to your engagement strategy. To start, the response rate of direct mail marketing is 9%, in [comparison](https://www.postgrid.com/direct-mail-statistics/) to the 1% of email, paid search, and social media. Additionally, it has a 29% ROI compared to 23% for paid search and 16% for online display. The benefits of personalized direct mail stem from two key features:

The first is that personalized direct mail can be tailored to a greater extent than its alternatives. Say that you know a group of your customers are avid runners that regularly buy running gear from your store. A digitally-focused brand might launch a campaign between major purchases for that group of people, where they want to offer them a free water bottle for being a loyal customer. An email offering the freebie will look a lot like other emails they receive, so it’ll likely be discarded, even if it’s genuine. With a brand savvy in personalized direct mail, the water bottle could be at their doorstep–delivered in a box personalized with running-focused creative–then in their hands as it becomes their daily drinker that they freely advertise for you.

The second is that, in the digital age, people are used to receiving all manner of marketing emails, to the point that it’s almost second nature to mark something as spam, or delete it. Personalized direct mail is more distinctive, and is much more likely to be seen by your customers. After all, 77% of people sort their physical mail immediately [according](https://www.pb.com/docs/US/pdf/Microsite/Nonprofit/ed_np_getyourmailopened_05MailMoment.pdf) to the USPS. With a chance that high for your mail to be seen, making use of personalized direct mail that resonates with your customers is the key to standing out.

## How can direct mail be personalized?

Personalized direct mail can be accomplished through several different means that utilize your first-party data, such as merge tags and creative variations. With machine learning and third-party consumer data on top of your first-party data, you can accomplish it more effectively, and at scale.

### Leverage data and machine learning for insights to guide personalization

To start, your customer data needs basic identifiers, like name and address, so that you know where to send your personalized direct mail. On top of that, you need to leverage all of your first-party engagement data, like products purchased, abandoned carts, subscriptions, and so on, to ensure any offers you make are relevant. You wouldn’t want to find a postcard with a discount in your mailbox for cat food when you don’t own a cat, would you?

Regardless of how strong your first-party data is, it provides limited insight into who your customers are beyond their interactions with your brand. With [rich, third-party consumer data](https://faraday.ai/features/data) that includes demographics, psychographics, lifestyle, financials, and more, you can take your segmentation to the next level, enabling you to customize your copy & creative so that it resonates.

In addition to leveraging both first-and-third-party data, using machine learning to identify distinct groups–personas–allows you to create personalized direct mail at scale, with each group can be targeted with its own resonant, relevant engagement.

### Use insights to inform your personalization

A uniquely powerful way to personalize direct mail is to make use of merge tags. With merge tags, you can personalize on an individualized basis so that any data you have that’s relevant to your customers can be utilized. This way, beneath the persona-level segmentation, your personalized direct mail is dynamic enough to include data points like, say, someone’s name, subscription level, or the city they live in. On top of that, if you have physical locations, merge tags can be used to point customers to your nearest storefront.

Personas also enable distinct creative variations that are relevant to each persona. For your Exercise Guru Elayne persona, you could include imagery of women running alongside a dog and while pushing a stroller, because the majority of the persona are dog owners and have children in the household.

Take your personalized direct mail even further by adding customized product offers and discount codes that are relevant to each persona. Maybe, utilizing your customer data, you know that a specific group of your customers have already purchased a pair of running shoes. You know they won’t need another pair for a while, so a promo for that will bounce off. An offer for a pair of running socks or shorts, on the other hand, is more likely to catch their attention.

![Postcard with personalized discount](/images/blog/direct-mail-discount.png)

_Image via [TheMailShark](https://www.themailshark.com/product-samples/postcards/)._

## Pillars of a personalized direct mail strategy

There are three pillars to a successful personalized direct mail strategy.

- **Insights**: Identify distinct customer segments and their related insights by generating [AI-powered personas](https://faraday.ai/predict/category/persona_assignments). Through these insights, you have clear indicators for how to engage your customers and leads in ways that are highly resonant with their lifestyles.
- **Customization**: Determine how you’ll customize direct mailers based on your insights, data, and promotions. The most impactful personalized direct mail campaigns will include a mix of products, imagery, discounts, and merge tags, ensuring you’re including the right content. Brands that offer personalized direct mail services, provide a range of these types of services.
- **Targeting**: The cost of direct mail can add up–especially if you’re not targeting the best fits. Predict for likelihood to [buy](https://faraday.ai/predict/category/likely_buyers), [convert](https://faraday.ai/predict/category/lead_scores), [repeat purchase](https://faraday.ai/predict/category/repeat_purchasers), [churn](https://faraday.ai/predict/category/churn_scores), or any other relevant data point so that you’re spending your time and money where they matter most.

## How to implement a personalized direct mail strategy with Faraday

With a customer prediction platform like Faraday, you can identify personas to gain rich insights and predict behaviors so that you can deliver resonant, personalized direct mail to likely-to-act audiences. All it takes is some historical data about your customers. Here’s how it works.

### Connect data and define customers

To start, you plug in your data by mapping your data fields to Faraday properties.

[![Direct mail dataset](/images/blog/direct-mail-dataset.png)](/images/blog/direct-mail-dataset.png)

Then, in cohorts, you’ll utilize both your customer data and Faraday’s rich, built-in consumer data to build the exact [cohort](https://faraday.ai/docs/cohorts/customers_from_hosted_csv)–or interesting group of people–you want. In Faraday, you’ll create a cohort for your customers so that you can find more people like them, and you’ll also build a cohort of people with mailable addresses, so that you’re also targeting unknown audiences. You'll do this by choosing the following traits when building a cohort:

- **Record quality code**: one of: mailable

[![Faraday direct mail cohort traits](/images/blog/direct_mail_guide/direct-mail-guide-cohort-traits.png)](/images/blog/direct_mail_guide/direct-mail-guide-cohort-traits.png)

### Predict personas to reveal rich insights

While you likely have customer data that indicates, in some ways, who your customers might be, predicting personas tells you who they really are, and what makes them tick. Dive into trait breakdowns like age, gender, household income, hobbies, and more–each one guiding you toward engaging with the right messaging.

[![Direct mail persona set](/images/blog/direct-mail-personas.png)](/images/blog/direct-mail-personas.png)

### Predict propensity to buy to target best fits

Next, you’ll build your predictive outcome by defining your attainment cohort as your customers, as that’s your prediction’s finish line–you want more people like your customers. In this example, we’re defining the propensity to buy, or the likelihood that anyone in the U.S. is going to become a customer by making a purchase, but you can predict for virtually any action that someone is likely to take, such as a conversion, repeat purchase, or churn.

[![Direct mail outcome](/images/blog/direct-mail-outcome.png)](/images/blog/direct-mail-outcome.png)

With your prediction defined, create a pipeline to make them actionable by choosing your **likely buyers outcome**, your **persona set**, and your **mailable cohort**.

[![Direct mail pipeline](/images/blog/direct-mail-pipeline.png)](/images/blog/direct-mail-pipeline.png)

Faraday’s machine learning algorithms then predict how likely people are throughout the U.S. to buy your product, while also revealing which people belong to what persona on an individual basis.

### Deploy personalized direct mail predictions to your stack

Likely buyer scores revealing your best fits across the country? Check. AI-generated personas providing clear guidance for personalization? Check. With these insights in-hand, deploy them anywhere in your stack you need them–for example, to a direct mail provider–then, design your copy & creative so that it caters to the personas you’re engaging with.

**Ready to try it out? [Create a free account](https://faraday.ai/signup).**

Learn the benefits of personalized direct mail marketing, how to personalize your direct mail campaigns, and how to use predictive analytics to maximize impact.

Personalized direct mail: How can direct mail be personalized at scale?

Imagine you’re leading a growing retail business with 25 thriving locations. Now, it’s time to decide where to open the next five. Do you expand into an emerging market where demand is heating up, or double down on your presence in regions where your brand is already well known? Is there some other critical factor you haven’t considered? The stakes are high, and even seasoned executives can fall prey to personal biases.

Take, for example, a story we recently heard from a client about an experienced restaurant CEO who was set on opening a location in his beloved hometown—a move driven by emotion rather than data. Fortunately, his team knew to assess the market, which revealed the location wasn’t actually viable. While this upended their original plan, it ultimately saved them the effort and cost of opening a doomed restaurant. This story highlights how critical these decisions are for sustained growth and why relying on data-driven insights (from the beginning) is essential to avoid costly missteps and make confident, strategic choices.

At Faraday, we understand the challenges businesses face when it comes to making strategic growth decisions. That’s why we offer **market opportunity analysis (MOA)**, a powerful tool that helps you confidently identify actionable opportunities that are backed up by data.

## What is market opportunity analysis?

MOA equips your team with a clear understanding of your current market reach and untapped potential. By analyzing your existing customer data and comparing those data points to the population at large, we can help you pinpoint exactly where the next big opportunities lie. Whether you're looking to expand geographically, target new customers, or optimize product offerings, our approach ensures your growth is backed by solid insights.

## How it works at Faraday

MOA provides your team with a data-driven roadmap to your most valuable and actionable growth opportunities, but how does it actually work? Here's how we approach it:

![](/images/blog/moa_analysis_diagram.png)

First, we conduct a detailed assessment of your current market penetration. By analyzing your existing customer base, we identify key traits such as purchasing behaviors, regional preferences, and lifetime value to create an ideal customer profile. Then, leveraging data from the [Faraday Identity Graph (FIG)](https://faraday.ai/features/faraday-identity-graph), we develop a tailored predictive model to evaluate the broader U.S. market and identify prospective customers who closely match your existing audience. This allows us to quantify the untapped potential within the customer segments most likely to drive growth.

Once we’ve identified the high-potential customer segments, we dig deeper into the specific opportunities within those groups. This involves determining which product or service offerings are best suited to each persona to maximize their lifetime value. We also take a close look at geographic trends, mapping out areas where your target customers are most concentrated from the regional level all the way down to zip code, metro area, or even postal route. This data empowers businesses to strategically allocate resources with significantly more confidence and precision than before.

## Unleashing the power of the Faraday Identity Graph (FIG)

A comprehensive MOA requires access to a detailed dataset of the broader population to serve as a benchmark for comparison. Fortunately, Faraday’s **Faraday Identity Graph (FIG)** provides exactly that, and much more. With rich data on nearly all American adults, the FIG offers a robust and comprehensive view of the population, significantly enhancing the reach and depth of our MOA.

The FIG goes beyond basic demographic information, offering nuanced insights into consumer behaviors, preferences, and buying patterns. By tapping into these granular details, businesses can understand their target market in a way that’s far more accurate and actionable than with competing data sources.

## Ready to explore what's next?

MOA can greatly benefit businesses by identifying high-potential customer segments and emerging market trends. By understanding where the highest-value opportunities lie, companies can optimize their marketing strategies and resources, focusing on areas with the highest growth potential. This leads to more targeted and personalized campaigns, which can improve conversion rates, enhance customer engagement, and increase profitability. MOA additionally provides companies with the confidence to know that their strategies are backed by data.

Growth doesn't happen by chance. With Faraday's MOA, you can take the guesswork out of targeting strategy and focus on results. Contact us today to discover how we can help unlock your business's full potential.

MOA empowers businesses to make strategic growth decisions by uncovering untapped potential and high-value opportunities in their market.

Unlocking growth with market opportunity analysis (MOA)

Faraday’s data science team has made significant improvements to the accuracy and interpretability of customer predictions within the platform; we’re going to give you a peek under the hood at how Faraday predictions are made.

The data science team introduced a process called **model calibration**, which measures how well the model's predictions match the actual outcomes. This method of calibration results in **probability scores**; predictions that are even more accurate and easier to interpret. Let’s take a look at a model report to break down the changes.

## Lift and precision before model calibration

In the below **pre-calibration** graphic, note the large dip in the lift curve (red arrow). With this lift curve, the top deciles of propensity scores, or the people you’d generally be targeting with a marketing campaign based on these results, have lower lift in the population (green square), indicating that there’s room for improvement.

A lift curve with strong predictability should show a more gradual dip than you see below. Similarly, the positive attainment cohort _home and living_ (blue square)–or the outcome you want to predict for–is very close to 50%, which could also be improved through model calibration. This would result in pipeline deployments having, say, a Jane Doe with a 0.8 score that could be interpreted as _pretty likely_ to achieve the outcome.

[![Image of Faraday model report lift table pre-calibration](/images/blog/probability-pre-calibration.png)](/images/blog/probability-pre-calibration.png)

_The above graphic displays a predictive [model report](/blog/faraday-model-reports) pre-calibration. Model reports can be found in an outcome's analysis view_.

Because Faraday uses multiple predictive models to create an outcome, it makes more sense to compare scores across models rather than treat scores from different models equivalently.

## Lift and precision with model calibration

Now, with model calibration implemented in the below graphic, the lift curve’s dip (red arrow) is much less significant for the top deciles, resulting in an outcome that has a higher positive attainment (blue square) in _home and living_.

[![Image of Faraday model report lift table post-calibration](/images/blog/probability-post-calibration.png)](/images/blog/probability-post-calibration.png)

_The above graphic displays a predictive [model report](/blog/faraday-model-reports) post-calibration. Model reports can be found in an outcome's analysis view._

So what does this mean? With probability scores, the groups of your prediction’s population–the deciles–are ranked in decreasing lift values, resulting in higher lift in your top attainers, or the people most likely to achieve the outcome.

With this update, Faraday’s predictions give you probability scores that are directly correlated to the probability of an individual achieving your outcome. If Jane Doe in your population has a 0.8 probability score, there’s an 80% chance that she will achieve the outcome.

Marketing campaigns have never been so predictable.

**[Create a free Faraday account](https://faraday.ai/signup) today.**

How model calibration helps Faraday improve customer prediction accuracy through probability scores.

Faraday probability scores: Improving prediction accuracy through model calibration

## What is market sizing?

Market sizing is a method of calculating a company’s revenue potential in a geographic market, which can provide crucial insights for competitive brands to be aware of when looking to expand, otherwise resources are likely to be wasted.

Market sizing is not a new concept, but more recent innovations in data collection and predictive analytics solutions have opened the door for more accurate market size calculations, enabling brands to make better go-to-market decisions and expand with more confidence and direction than before.

## Top down vs bottom up market sizing analysis

There are two methods of market sizing analysis: **top down**, and **bottom up**. In this article, we’ll look at both, and then explore how using predictive analytics for bottom up market sizing can provide you more accurate estimates while drastically expediting the analysis process, and give you actionable insight into where you’re most likely to have success penetrating.

### Top down market sizing

When using top down market sizing to calculate your market potential, you start at the highest level of the market that you’re in, where you find the largest possible size of the market you could acquire, then multiply it by the percent of the market that your product fits in.

For example, say you’re a brand that sells humidifiers, and you’re planning to launch a new humidifier that’s perfect for maintaining moisture levels in a newborn’s nursery. With the top down approach, your research shows you that the US market for humidifiers is \$700 million, and 65% of humidifiers sold annually are single-room, like your new product.

> **\$700m X 65% = \$455m**

Since, for the most part, the numbers that are relevant to your company and industry are likely already published elsewhere, this approach involves doing some research to find the populations and market values you need rather than calculating them yourself.

**Pros**:

- **It’s fast**. The research involved and the calculation are both straightforward and quick, so there’s not much time investment in a top-level market size estimate.
- **Accessible data**. Regardless of the outlet you want to source your data from, people have been publishing industry reports and analyses for years, so the data you need can easily be found via some time on Google.
- **Helpful at-a-glance**. Since top down market sizing looks at broad trends and market-wide data, it’s useful to be able to know, at a glance, if the space you’re looking to go-to-market in is worth the investment you’d have to make.

**Cons**:

- **It’s very broad**. As mentioned above, it’s useful to run a top down market size analysis for an initial glance at the market, but it’s unlikely to be specific enough for your company’s needs.

### Bottom up market sizing

Bottom up market sizing starts on the opposite end in that it begins with your niche. Using the same humidifier example, you’ll likely want to find people with children in the household to target since your new humidifier is for nurseries.

Through extensive research, data collection, and surveys, you find that there are 4 million people in this target group. To calculate the bottom up market size, you’d then multiply the number of people by the annual revenue you’d expect from them for the product–your customers are unlikely to buy more than one humidifier in a year, and its cost is \$100 per unit, so we’ll use \$100.

> **4 million people X \$100 = \$400m**

So what’s the verdict? Top down or bottom up market sizing? Since it uses data that’s relevant to your company, bottom up market sizing provides a more accurate estimate of your potential market–if your company has the bandwidth to put in the time. Fortunately, predictive analytics can help cut down that long timeline dramatically while providing you with geographies where your most likely buyers live.

**Pros**:

- **Backed by your data**. Since bottom up market sizing uses your own data & analytics through your customers, product, and cost data, results are much more tailored to your company, and they’re more realistic to boot.
- **As niche as you want it**. Rather than relying on industry-wide assumptions, this strategy begins and ends with your company’s niche.

**Cons**:

- **Time-intensive**. Performing the data collection required to accurately run a bottom up market sizing analysis is a long process in that, whether you’re conducting interviews or surveys, you’ll need to wait for results to come in.
- **Resource-intensive**. Assigning teams to create surveys, conduct interviews, act on their results, and so on can occupy a significant portion of their time.

## Calculating market size with predictive analytics

In the end, bottom up market sizing wins out as a more effective approach to calculate market potential. The downsides, of course, are the longer timeline and additional resources required to do it effectively.

This is where predictive analytics comes in–leveraging machine learning to predict individuals’ propensity to buy your products or services. With machine learning, your time-to-value in performing a bottom up market sizing analysis is dramatically reduced because it eliminates the need to design surveys and conduct interviews, conduct research, and wait for results.

Better yet, rather than spending extra time using your analysis to plan where you _think_ your campaigns will have the most impact, likely buyer scores show you _exactly_ where your high-intent buyers are at any geographic zoom that suits your needs.

### Traditional approach to bottom up market sizing

As we reviewed earlier, the typical traditional approach involves multiplying the number of people in the segment by the annual cost of your humidifier, which is simple enough math once you’ve done the required research to find the number of people in the segment.

At the end of the day, there’s still a lot of guesswork involved. In your research, you uncovered the raw number of potential buyers in your market, but the only direction you might have as for where to direct your campaign are surveys, which are unlikely to have reliable penetration for guidance, and assumptions–maybe the 5 driest states in the U.S. are the best bets to market your humidifier?

### Predictive approach to bottom up market sizing

With the predictive approach, you’ll take the segment you created above, then use AI to predict the propensity to buy for everyone in the segment based on real historical data. Machine learning algorithms surface patterns in the data to calculate just how likely each individual in this segment is to buy the product in likely buyer scores, and their forecasted spend over their lifetime as a customer of yours.

These likely buyer scores can be filtered by county, state, city, or metro, so that you have crystal clear indicators where your high-intent buyers are. You can even use your own points-of-interest, like brick and mortar locations, to perform radius-based likely buyer targeting for pin-point accuracy.

With Faraday, the predictive approach can be done in just a few clicks, saving you a significant amount of time and resources, providing more accurate results, and helping align your strategy through clear indicators for the locations you’ll have the highest likelihood of penetration in.

## How to do bottom up market sizing with Faraday

Using Faraday, the predictive approach for bottom up market sizing can be embedded wherever in your stack you need it in less than a day. No developers, no data scientists, and no long research timeline required.

### Connect data and define customers

To start, you plug in your data by mapping your data fields to Faraday properties.

![Image of Faraday dataset](/images/blog/market-sizing-dataset.png)

Then, in cohorts, you’ll utilize both your customer data and Faraday’s built-in consumer data to build the [exact cohort](https://faraday.ai/docs/cohorts/customers_from_hosted_csv)–or interesting group of people–you want. To continue with the nursery humidifier example, you’ll define a cohort for your customers, and a cohort using the trait for _children in household_, sourced from Faraday’s [rich, cookieless, opt-in consumer data](https://faraday.ai/features/data), to target with your propensity to buy predictions.

![Image of Faraday cohort](/images/blog/market-sizing-cohort.png)

### Predict propensity to buy to hone in on likely buyers

With your cohorts defined, build your predictive outcome by choosing your attainment, or your customers. Here, you’re defining your propensity to buy, or the likelihood that anyone in the U.S. is going to become a customer by making a purchase.

![Image of Faraday outcome](/images/blog/market-sizing-outcome.png)

Now that your predictions are defined, create a pipeline to make them actionable by choosing your **likely buyers outcome** and your **children in household** cohort.

![Image of Faraday pipeline](/images/blog/market-sizing-pipeline.png)

Machine learning algorithms then get to work predicting how likely people across the country with children in the household are to buy your new nursery humidifier. You can even further your bottom up market sizing analysis by generating customer personas and their predicted lifetime value with your brand.

### Deploy likely buyer scores to your analysis tools

Finally, deploy your likely buyer predictions back to your stack, via CSV file for versatility, or right back into your database or data warehouse for analysis in your BI tools. When deploying, filter to whatever aggregation level makes the most sense for your strategy: county, state, city, or metro. In this example, perhaps choosing state will reveal that the driest states in the country have the highest propensity to buy individuals.

![Image of Faraday pipeline](/images/blog/market-sizing-deployment.png)

With the predictive approach to bottom up market sizing, you have access to likely buyer scores anywhere in your stack in just a few clicks, providing insight into what geographic locations your company has the most high-intent buyers in so that your market size is more than just a rough estimate–it’s actionable and data-backed.

**Ready to try it out? [Create a free account](https://faraday.ai/signup).**

What is bottom up market sizing? What are its benefits? How can B2C brands accurately analyze markets without investing vast resources?

Bottom up market sizing: how to calculate market size using predictive analytics

**See our complete guide:** [Predictive AI for insurance brands](/blog/insurance-complete-context-guide).

---

If you’re a marketer in the finance industry, you know you have some heavy regulations to work with on [Google](https://support.google.com/adspolicy/answer/9917652?hl=en), [Facebook](https://www.facebook.com/business/help/2408667629202904), and other platforms, where consumer protections are put in place to help prevent discrimination. These regulations can make it difficult to reach your ideal customers when targeting new audiences, which likely means that you’re spending more than you need to on inefficient acquisition.

Complying with financial advertising regulations doesn’t mean you need to throw in the towel and accept worse performance. You can respect your customers’ privacy and be smart with your marketing strategy at the same time–you just need to think out of the box. That’s where built-in [third-party consumer data](https://faraday.ai/features/data) and [responsible AI](https://faraday.ai/features/responsible-ai) come in.

The data you have on your customers might be good, but purchases, adoptions, and clickstreams aren’t robust enough to give you a true leg up on your competitors, nor is it enough to ensure you’re not unknowingly discriminating against protected classes. Third-party data, when unified with your first-party customer data, can give you a 360º view of your customers, leads, and virtually any other group of people your business cares about.

With this breadth and depth of data in your pocket, you can then use AI to optimize your ad spend by surfacing your most likely-to-buy customers while remaining compliant by:

- Excluding protected classes from your predictions to ensure no unintended bias
- Targeting at the right aggregation level for your industry (counties, rather than zip codes, for example)
- Removing both human bias and error from the equation by using AI
- Monitoring and minimizing bias in predictive models through bias reporting

Faraday enables you to do all of these things–without a data science degree or programming knowledge–and in under 15 minutes. Here’s how.

## Connect your customer data to combine it with third-party attributes

To start, you plug in last quarter’s adoption data in by [mapping the data in Datasets](https://faraday.ai/docs/cohorts/customers_from_hosted_csv#option-a-each-row-represents-a-transaction-event).

![Image of identity set definition](/images/blog/finance-identity-set-definition.png)

Next, you use this new data to define a cohort–a group of people you’re interested in–of these new adopters.

![Image of cohort definition](/images/blog/finance-cohort-definition-booked-date.png)

## Build a predictive outcome to identify likely buyers

Now it’s time to predict which leads are most likely to convert. To do that, you’ll define an outcome using your _customers_ as your attainment cohort because that’s your end-goal–you want people to become customers and enter your _customers_ cohort.

Faraday makes this easy with step-by-step guides for [connecting to Google Ads](https://faraday.ai/docs/how-to/connections/google-ads) and setting up a [likelihood-to-convert prediction](https://faraday.ai/docs/how-to/predictions/likelihood-to-convert). Once your outcome is defined, Faraday will generate scores that tell you which individuals or locations are most likely to become customers.

![Image of new outcome screen](/images/blog/finance-new-outcome.png)

## Exclude protected classes with trait blocking

When describing your outcome, you choose _trait blocking_ to remove protected class traits. This ensures you’re not only complying with financial fair lending regulations, but are also using AI responsibly.

![Image of trait blocking checkbox](/images/blog/finance-trait-blocking.png)

## Choose the right aggregation level for your likely buyer predictions

Once your predictions are ready, set your aggregation level based on how high you’d like to zoom out of a location–such as by _county_ to remain compliant with Google’s restrictions on zip code targeting.

![Image of pipeline aggregation level](/images/blog/finance-pipeline-aggregation-level.png)

## Push high-scoring locations to your ad platform

With your highest-scoring locations in-hand, you plug them into your Google Ads campaign:

![Image of Google Ads campaign location upload](/images/blog/finance-google-ads-campaign-locations.png)

And your Facebook campaign:

![Image of Facebook campaign location upload](/images/blog/finance-facebook-campaign-locations.png)

That’s it! Your best-bet locations are plugged into Google and Facebook, and fewer than 15 minutes were spent making your predictions.

## Real results from a customer in the financial services space

A Faraday client in finance recently followed these exact steps to kick off a new acquisition campaign for an underperforming insurance plan, and they’re expecting a **3.2x lift in conversion rate** in the top 10% of individuals alone.

![Image of Faraday lift table](/images/blog/finance-lift-table.png)

Next up for them is adding direct mail into the mix, but the possibilities are endless.

[Sign up](https://faraday.ai/signup) free today.

In finance, remaining compliant to fair lending regulations doesn’t mean you need to accept worse acquisition performance. Learn how to use AI and third-party data to optimize ad spend by surfacing  your most likely-to-buy customers in under 15 minutes, while ensuring you're compliant to any relevant regulations.

How to optimize ad targeting and comply with financial advertising regulations

Predictions are complex, and consumer predictions for marketing aren’t an exception. In many cases, you might find yourself given the green or red light to go after a lead, prevent a churn, or approach a customer in another way that’s specific to a business goal your org has. Having access to that knowledge is great, but it’s a black box–simply knowing whether or not a lead will bite isn’t enough if you want to truly understand your customers and the actions they take.

In Faraday, every predictive model you create for your business is scored based on how well you can expect the model to perform, and includes a full technical report describing how the model was built. While the full technical report includes a swathe of info for data science-minded users, for the sake of this guide we’re going to take a look at how **features of importance** and **directionality** impact a sample **lead conversion** model, which you can find in every outcome and recommender.

## Features of importance

![Image of features of importance in a Faraday outcome](/images/blog/product/feature-importance.png)

In each outcome and recommender, you’ll find a **data** section describing the top features of importance for that model broken down into tenures, or how long an individual existed within the eligibility cohort before entering the attainment cohort. The features that had the most impact in creating the model are listed in the chart, sorted by the level of impact. In the above image, you can see that features such as high ticket home decor quintile, activity, total online dollars quintile, and household income had a major impact on the model. This means that when thinking about who you’re targeting with these predictions, you can tailor creative and messaging appropriately–but that still feels a little broad. Let’s take a look at directionality to see exactly how these features of importance break down.

## Directionality

![Image of directionality in model report](/images/blog/product/feature-directionality.png)

When you take a deeper look at a feature of importance in feature directionality, you’ll find it broken down into ranges if the feature is numeric, or selections if not. In the above example, green indicates positive, and red negative. For **household income** (HHI), it’s clear that consumers with an HHI of over 75k rank higher on average (green), whereas all HHI ranges lower than 75k rank lower (red). For **shopping styles**, _luxury offline_ and _prefers online_ shoppers rank higher, while _retail therapy_ shoppers rank lower.

That’s cool and all, but what’s the takeaway?

In short, these breakdowns tell you that in this lead conversion model, the people that are most likely to convert are largely making more than 75k/yr, and prefer to shop online unless it's for luxury items. Using this info, your marketing to them can confidently personalize toward the positive features so that your content is relevant.

Learn how to analyze your predictive models to deeper understand your customer base.

Faraday model reports: Understanding feature importance and directionality

While data security has always been an important part of doing business, in recent years it’s become an increasingly urgent consideration. Public scandals, like those of [Facebook and Cambridge Analytica](https://www.wired.com/story/cambridge-analytica-facebook-privacy-awakening/), and growing government regulations, to the tune of GDPR and CCPA, have consumers on high alert about how their data is being used.

If you find yourself among the many brands looking for ways to build trust with your audience, you’ll need to consider not only how you manage data security at your organization, but also how you communicate with your clients. Transparency is an important part of security—clients and collaborators alike should be able to quickly and easily understand what you’re doing to protect their data. The more effectively you achieve that, the more trust you’ll be able to build.

Read on to explore the three most common questions our customers ask us (and might ask you!) about data security, and how we answer them. Feel free to use these as a blueprint to guide your own practices, though the particulars will vary from industry to industry.

## “How is your company audited for data security?”

_Our answer: Check out our [SOC 2 audit](/security)!_

If you offer a cloud-based product or service, and want potential customers and collaborators to see you as a trusted partner, a clean SOC 2 audit should be your gold standard. SOC 2 audits are exhaustive reviews performed by certified public accountants to ensure that SaaS companies meet strict security requirements and provide a safe operating environment for managing sensitive data. In order to retain a clean SOC 2 audit, companies must renew their audit annually.

The existence of SOC 2 as a process reassures clients, but it also benefits the company. As Seamus Abshere, Faraday co-founder and Chief Technology Officer, puts it, “SOC 2 audits provide a chain of trust going from the client all the way to Faraday and to our vendors (like cloud hosting providers). At every level, auditors are involved to ensure that policies and procedures are followed.”

## “How is my data transferred and stored?”

_Our answer: All data is stored with trusted cloud vendors (Amazon, Google Cloud), encrypted in transit and at rest, and access is controlled using multifactor authentication._

Simply put, encryption is a no-brainer. When customers share data with brands, they’re trusting them to protect it from bad actors, and encryption is the standard practice for doing so. “At this point, using unencrypted data is like a surgeon not washing their hands before surgery,” asserts Abshere. “If you are not encrypting everything, it's just malpractice.”

It's standard practice for clients and vendors to ask about encryption, but at this point, the answer should always be "yes."

## “What data do you actually use, and how?”

_Our answer: We live by the *[*“If we don’t need it, we don’t collect, store, or transmit it”*](https://faraday.ai/blog/using-ethical-data/)* mentality._

It’s essential for brands to understand what data they have access to in order for them to put the proper safeguards in place. Here at Faraday, where we handle the data of hundreds of leading brands, we’re extremely clear with clients about what we use—and what we don’t.

**“We don’t want your account numbers, social security numbers, health records — any of that,” Abshere says.  “All we need are known identifiers (like billing information) and transaction information. We do not require or accept account numbers, so we don't affect our client's PCI DSS scope.”** In our case, we leverage this personally identifiable information (PII) to match consumers with our identity graph and train machine learning algorithms to make predictions about a brand’s current or potential customers.

Another important step is to prevent any co-mingling of your clients’ data, particularly if your clients are competitors. At Faraday, we understand this is a serious concern, and we’re careful to prevent it. “Data is logically separated, and everyone’s predictions are based only on their own data plus Faraday's identity graph,” explains Abshere. "Mixing client data would be a huge risk."

## Security is always a priority

No matter your role at a given company, you’re always a steward of your customers’ data. Various teams, from security to engineering to marketing, may operate on very different datasets and roadmaps, but it’s crucial that everyone contributes to a trusted relationship with clients and collaborators, working together to efficiently and transparently implement best practices.

Transparency is an important part of your security practices—clients and collaborators alike should be able to quickly and easily understand what you’re doing to protect their data.

Building trust: How brands can answer common data security questions

Headlines abound on the [opportunities](https://www.techrepublic.com/article/companies-are-doubling-down-on-artificial-intelligence-and-machine-learning-due-to-pandemic/) and [dangers](https://www.propublica.org/article/machine-bias-risk-assessments-in-criminal-sentencing) of machine learning. Now armed with [plenty](https://www.propublica.org/article/breaking-the-black-box-when-algorithms-decide-what-you-pay) of [examples](https://www.nytimes.com/2019/08/20/upshot/housing-discrimination-algorithms-hud.html), the Data Science community is at least aware that our data lakes and algorithms can make life more difficult for real people if not properly used. But the root problem can be summed up in pretty simple terms:

> An algorithm contains the biases of its builder.

Examples of bias include:

- **Reporting bias** _(at the source)_ — Maybe the folks who filled out your online survey were mostly young, male, and computer-literate.
- **Implicit bias** _(the call is coming from inside the building)_ — Perhaps your image of an ideal job candidate fits into a mental archetype of which you're only semi-aware, and that image excludes those who don't match the archetype.

At Faraday, we have a handful of approaches we use to minimize these effects.

## Data sourcing

It's possible to get your hands on a pretty broad range of data points these days. Everything from the basics of home value, age, and income to the more esoteric pet ownership and liklihood to buy high-end men's apparel. **Faraday actively excludes data points relating to protected classes**. Race, ethnicity, primary language, and religion are excised from our database entirely and therefore excluded from our predictive models and audience definitions.

Of course, seemingly-harmless demographic variables can often act as proxies for these features, but our stance begins with the most effective levers we have available to pull. And further on in the pipeline we do check _results_ against features like race, but we do it at an aggregated level using standardized census data (more on that below).

## Model priors

We investigate the examples in our training data before they become machine-actionable profiles. In particular, we look at how well they're balanced by age, gender, and geography against the population at large. If there's a significant skew versus the baseline, we know there's a chance the resulting predictive model will show bias, so we rework the inputs.

## Model predictions

When a predictive model is fully-built and ready to be put into action, we typically assign a predictive score to everyone in the country as a matter of efficiency. But this also allows us to check whole populations against statistics that reflect the inclusion or exclusion of protected groups at a census block group level.

If we see - for example - that the lowest scores are concentrated in the block groups with the highest proportions of particular racial or ethnic groups, we'll know that _some_ bias has made it into the model, and we'll revise it.

The bottom line is that these strategies are only a start, and **the best defense against unfair algorithms is multi-pronged and in for the long haul.** If you have questions about how your own applications might be veering away from fairness, I suggest checking out:

- Google's [Marketers' guide to ML fairness](https://www.thinkwithgoogle.com/feature/ml-fairness-for-marketers) or [ML bias crash course](https://developers.google.com/machine-learning/crash-course/fairness/video-lecture)
- ["Abolish big data"](https://d4bl.org/videos/19-abolish-big-data) from [Data for Black Lives](https://d4bl.org/)
- The machine bias case studies at [diversity.ai](http://diversity.ai/#case)

How to reduce the effects of implicit bias in machine learning, from data sourcing to model predictions.

Product