Based on this type of setup, you should be able to evaluate performance of one segment versus the next using your existing RFM protocol and determine what effect distance from store has on the overall response. In peak seasons you may very well see 20.01+ mile Segment 1 names perform just as strong as the 0-5 mile Segment 5 names. In non-peak seasons though, it's just as likely you'll find 0-5 mile Segment 5 names outperforming 10.01-15 mile Segment 1 or Segment 2 names. The test will highlight findings for a retest and, if executed and applied correctly, rollout should yield improved response.
Distance from the store plays an undeniable role for multichannel marketers that make attempts to drive retail traffic. Being able to capture, analyze and apply accurate data is the key to finding out just how far your marketing dollars can go.
Steve Trollinger is vice president of client marketing, J. Schmid & Associates. He can be reached at (913) 236-8988 or via e-mail at email@example.com.