February 22, 2010

Digital Profiles: Online Marketing Simulations

I really enjoy using Digital Profiles in my Online Marketing Simulation algorithm!

Here's a five year simulation, illustrating customer counts by Digital Profile.

Remember, there are a handful of Digital Profiles that exhibit high performance, including Multichannel Men, Digital Dudes, Winter Wear, and Happy Holidays.

When we run all of our Digital Profiles through the simulation, we see trends that, in this case, are not necessarily favorable.

Multichannel Men are projected to decline from 5,075 to 2,880 over time.

Digital Dudes are hanging in there, from 5,104 to 4,843.

Winter Wear show a significant drop, from 5,262 to 4,289.

Happy Holidays, however, are on the increase, from 5,089 to 6,116.

Clearly, there is a trend away from Multichannel Men, and a growth area among the Happy Holidays segment. But overall, the best segments are losing customers, and that is never a good thing.

Which segments are increasing over time?

  • Happy Holidays
  • Tech Men
  • Last Minute Guy

You see a trend away from good customers, and you see increases in online Digital Profiles and Digital Profiles that represent customers shopping for a need during the Holiday Season.

In other words, Digital Profiles provide a way for the business leader to understand the psychographic trends that underlie the business.