September 20, 2010

Digital Profiles Part E: Profiles 5-8

Let's take a look at Digital Profiles five through eight.

Digital Profile #5 = "Shop Online, Buy In Store". Oh, isn't this one just plain dreamy? Marketers love the concept of a customer browsing online and then buying something in a store, and it turns out that there is a profile that represents this behavior. These customers sure are valuable, spending $317 in the next twelve months. Now, what do you see when you look down this column? First of all, these customers buy expensive items, $72 each. Maybe the customer needs to touch/feel expensive merchandise before buying it, who knows? Notice that all online channels except for social are above-average ... these customers want to transact online! Then notice that more than half of these customers buy merchandise in stores as well. Also notice that merchandise divisions one, two, three, eight, and nine are above average ... we haven't seen this combination yet, so there is something about this type of merchandise that warrants an online shopper who might want to buy in stores as well. 55% of these customers are the fabled "multi-channel" shopper that marketers love to talk about, and these customers do live in online-responsive zip codes.

Digital Profile #6 = "Direct Newbies Looking For Eight". The "eight" represents merchandise division #8, which is about all these customers want to purchase. Look at the price points as well, at $147 per item, it's the most expensive of all price points in this analysis. These customers tend to buy online and via search at an above-average rate, suggesting that these customers are searching online for this merchandise. These customers are only worth $135 next year, in the lower half of all segments for future value. Many customers were first-time buyers, suggesting search might play a role in recruiting newbies, or that newbies like merchandise division #7?

Digital Profile #7 = "Online One-Twos". These customers purchase via the website, do purchase via search, and like buying from merchandise division one and two. These customers do tend to live in retail trade areas, and tend to live in areas where catalogs are traditionally responsive. These customers are similar to "Direct Newbies Looking For Eight", except that they prefer merchandise divisions one and two instead. They are also worth $135 next year. Again, many customers were first-time buyers.

Digital Profile #8 = "Ship It To Me". They are worth only $103 in the next twelve months. They buy expensive items via online/search, they like merchandise division #7, and they are second-most likely to not live in a retail trade area, living instead in areas traditionally served by catalog marketing. An above-average number of these customers are first-time buyers.

Ok, we're half-way home. Up next ... profiles nine through twelve.