January 28, 2009

Co-Ops And Long-Term Value

You may have heard me be critical of the co-ops.

One place where co-ops deserve praise is in the targeting and modeling they've done over the past two years. Long-term value of customers acquired via co-ops have consistently been above-average, after seeing very different results in the past. Whether competition or better algorithms or better data capture, the result is highly positive.

Often, subsequent merchandise purchased by co-op customers is different, and subsequent channels purchased from by the customer are different than the merchandise/channels purchased by online customers using algorithms like Google.

Also pay attention to Zip Code Forensics --- a few of the larger co-ops skew heavily toward Catalog Crazies & Catalog Fans, not good, not bad, just means they are going after the rural catalog customer, directly or indirectly. Conversely --- Google --- those customers skew to the Online Bliss and Online Spend segments in Zip Code Forensics.

Page Counts When Bifurcation Hurts All Other Customers

Yesterday we talked about the fact that best catalog customers (a minority of your file) deserve MANY catalogs that are merchandised with...