Database Special Report: Beyond the Black Box
With no other changes, the number of buyers that made three or more purchases doubled in less than a year. Repeat purchases soared, and lifetime value jumped dramatically.
The segmentation analysis did not only change the tactics of who gets mailed when; it changed the cataloger’s strategy. Before, it thought of itself as a holiday/seasonal business, driven mainly by gift giving. Now, it knows its best customers buy again—often for themselves. If the cataloger doesn’t contact its customers often enough, it will lose them. This new strategy is changing the tone of the offers and influencing a change in the creative message.
Segment by Understanding
Marketing is communication, and proper communication requires understanding. Someone once said, “Never tell a story without making a point, and never make a point without telling a story.”
The point of effective segmentation modeling is that you can select, or de-select, names very efficiently. But you have to know the story to develop the right creative and build the best offers. As marketers, you should demand that regardless of how effectively a segmentation technique makes a point, it must also tell a story.
The story is the explanation, and you must understand it to fully implement the lessons it has to offer.
Alan Weber is president of Marketing Analytics Group, a direct marketing consultancy based in Cleveland, Mo. He can be reached at (816) 618-3338, or by e-mail at: firstname.lastname@example.org.