February 16, 2010

Digital Profiles: Performance Analysis

Digital Profiles have value if and only if they do a credible job of describing customer behavior.

Here is a case where our Digital Profiles make a difference. We're analyzing customer behavior during January 2010, based on the Digital Profile the customer had as of the end of December 2009.

Which segments perform the best?

Winter Wear is the segment that performed the best, and for good reason, given that January is smack-dab in the middle of winter!

Notice that Multichannel Men perform well, too.

The bottom of the Digital Profile list didn't perform well. These tend to be sale customers who like to shop during the Holiday season.

How about by channel? Look at phone orders:
  • Winter Wear
  • Multichannel Men
  • Happy Halloween

How about online orders?

  • Digital Dudes
  • Happy Holidays (these must be good, cross-channel buyers).
  • Winter Wear

And then there's e-mail:

  • Happy Holidays
  • Digital Dudes
  • Multichannel Mavens

Last, we look at search:

  • Multichannel Men
  • Happy Holidays
  • Digital Dudes

We repeatedly see the same Digital Profiles performing well in January. This will happen, over and over and over again. There will be maybe four Digital Profiles that consistently outperform all others. These are your "best" customers, and the labels associated with the Digital Profiles tell you who your best customers are.

For this brand, the Digital Profiles that perform well are:

  • Winter Wear
  • Multichannel Men
  • Happy Holidays
  • Digital Dudes

These are the Digital Profiles to pay attention to. If the business is going to be successful, then these Digital Profiles need to grow, not contract.

We will look at this issue in our next edition of Digital Profiles, next week.