January 05, 2017

Where Are The Discount And Promotion Buyers?

Remember our customer file?



The best customers are yellow/white ... on the Southwest portion of the image.

Let's take a look at another attribute. This attribute is the percentage of demand that comes with a discount or a promotion. Same concept - yellow/white is hot, black is cold.

The Southwest portion of this customer file is heavily populated with customers with 40%+ of historical demand from discounts/promotions. Notice that this orb is directionally aligned with better customers.

The Northeast portion of this customer file aligns with < 20% of historical demand from discounts/promotions. This is the portion of the file that aligns with newer-to-file customers with only 1-2 purchases.

Clearly, this is a company that is offering discounts/promotions to better customers. Is that good? Is that bad? Don't know yet, do we? But we are clearly imprinting upon our little ducklings that the more you buy, the more discounts/promotions you get.

Up next - an evaluation of the Southwest portion of the image/customer-file.