March 02, 2010

Digital Profiles: E-Mail Targeting And Predicting Demand

Digital Profiles aren't some geeky, theoretical methodology. They are a way to better understand your business, a way to predict future demand.

Take this example. I took our example, and created a simple regression model (ignore the fact that many variables aren't significant, I'm doing this to prove a point) that predicts future e-mail demand, based on last year's demand and last year's Digital Profile.

There are several Digital Profiles that are big predictors of future e-mail demand. Digital Dudes (men who shop on the internet) and Happy Holidays (customers who purchase in Nov/Dec) are the "most valuable" to the e-mail marketing program.

Now, if you know that Digital Dudes are the most valuable Digital Profile, might you create a version of your e-mail campaigns specifically for this Digital Profile?

And if you know that Summer Ladies are an unproductive Digital Profile, might you sometimes elect to not send them an e-mail campaign, just to test how that customer would perform without e-mail marketing ... or might you send that customer e-mail campaigns during May/June/July, when that customer is most likely to shop?

Use Digital Profiles to "amp" your e-mail marketing program. Get to know your customers, and then use the data to make actionable marketing decisions that improve sales and profit!

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