February 22, 2010

Digital Profiles: Online Marketing Simulations

I really enjoy using Digital Profiles in my Online Marketing Simulation algorithm!

Here's a five year simulation, illustrating customer counts by Digital Profile.

Remember, there are a handful of Digital Profiles that exhibit high performance, including Multichannel Men, Digital Dudes, Winter Wear, and Happy Holidays.

When we run all of our Digital Profiles through the simulation, we see trends that, in this case, are not necessarily favorable.

Multichannel Men are projected to decline from 5,075 to 2,880 over time.

Digital Dudes are hanging in there, from 5,104 to 4,843.

Winter Wear show a significant drop, from 5,262 to 4,289.

Happy Holidays, however, are on the increase, from 5,089 to 6,116.

Clearly, there is a trend away from Multichannel Men, and a growth area among the Happy Holidays segment. But overall, the best segments are losing customers, and that is never a good thing.

Which segments are increasing over time?

  • Happy Holidays
  • Tech Men
  • Last Minute Guy

You see a trend away from good customers, and you see increases in online Digital Profiles and Digital Profiles that represent customers shopping for a need during the Holiday Season.

In other words, Digital Profiles provide a way for the business leader to understand the psychographic trends that underlie the business.


  1. I have been reading the Digital Profiles series and I think that it was interesting that you mentioned in the series that you like to use 16 profiles. What is interesting about it is, Meyers & Briggs have a psychological theory on personality that has 16 profiles as well. If you could take your digital profiles and identify which of the personality profiles each fall into, that could provide some really interesting insights in the values for each customer segment that drive their behavior and purchasing decisions. That would also tell us how to tailor creative and our messaging to increase the conversion rates. That may be a way to stop the flight from high LTV customer to low ones. Take more time to understand the key segments at a deeper level and speak to their specific values. So the magic tactic to increase the conversion rate is really simple: Understand Thy Customer. (But hard to actually do)

  2. How 'bout the dumb luck on matching up with Meyers & Briggs on 16 profiles?!

    Good thoughts!

  3. I never ceased to be amazed by these profiles. I think it is so great that you are able to run these profiles through your system and see their reaction. Crazy. keep up the good work, it is helping us out.


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