Differential Marketing for Direct Mail Retention
If a customer from the New Suburbia Families segment has purchased an item from a particular product category for the very first time, you could examine the purchase behaviors of other customers within this peer group to develop an offer for a complimentary item that has been shown to have wide appeal within the peer group.
This would be similar to building a recommendation engine. If at the same time you notice that the time gap since this customer's most recent purchase has been exceedingly long, you could craft the offer with a redemption date that provides an immediate incentive for this customer to make a subsequent purchase within a shorter period of time.
Other design elements in the mail piece could take advantage of the fact that this customer is likely to be relatively affluent, married and have pre-school aged children.
This is important because, with differential marketing, a you can take a proactive stance for developing product offers and related marketing communications. It provides a valuable framework for getting the most out of your customer retention marketing initiatives.
When thinking about your current customer retention strategy, where does the concept of differential marketing fit into the mix?