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Part 1. Strategy Segmentation:
Reveals the behavior we want to change for each customer
which, in turn, identifies a "mission to be accomplished".
The strategy for entrenching a new customer into your
business is different from the strategy applied to an
existing customer which, in turn, is different from the
strategy applied to a past customer.
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Part 2. Purchase Propensity Forecasts:
Guides the specifics about how to capture the revenue opportunity that exists for each customer. Customers are scored according to their likelihood to behave in a given way. For example, Jack may need to be recaptured through a focus on promoting product X instead of product Y. Although you are losing his business in both areas, Y more than X, his behavioral pattern would suggest that your greatest chance of success with a "win-back" promotion would be to promote Product X. Propensity Modeling is predominately pro-active in nature. When combined with Strategy Segments, propensity models tell you what your marketing goal should be for each customer AND how to achieve it.
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