December 18, 2012

Triggers: Weighting Transactions

From time to time, I work on projects where the goal is to set up various triggers.  This can be a complicated problem, because customers might perform competing activities.

I run regressions against various purchase, visitation, and social activities.  My goal is to identify when an activity should trigger a marketing tactic.  You learn some interesting things when you do this (your mileage will vary):
  1. Old-School Catalog orders have a half-life of maybe 24 months.
  2. E-Commerce orders have a half-life of maybe 20 months.
  3. In-Store retail purchases have a half-life of maybe 16 months.
  4. A click through an email campaign may have a half-life of 2 months.
  5. A visit to a website may have a half-life of 2 weeks.
  6. A social media action may have a half-life of 2 days.
Again, your mileage will vary.  But it's your job to know the half-life of all activities!  If a customer visits your website on December 13, but purchased in a retail store on December 1, it is quite likely that the retail transaction will carry more weight ... any triggers you plan are focused more on the retail transaction than the website visit.

Know the half-life of all customer activities.