March 02, 2010

Digital Profiles: E-Mail Targeting And Predicting Demand

Digital Profiles aren't some geeky, theoretical methodology. They are a way to better understand your business, a way to predict future demand.

Take this example. I took our example, and created a simple regression model (ignore the fact that many variables aren't significant, I'm doing this to prove a point) that predicts future e-mail demand, based on last year's demand and last year's Digital Profile.

There are several Digital Profiles that are big predictors of future e-mail demand. Digital Dudes (men who shop on the internet) and Happy Holidays (customers who purchase in Nov/Dec) are the "most valuable" to the e-mail marketing program.

Now, if you know that Digital Dudes are the most valuable Digital Profile, might you create a version of your e-mail campaigns specifically for this Digital Profile?

And if you know that Summer Ladies are an unproductive Digital Profile, might you sometimes elect to not send them an e-mail campaign, just to test how that customer would perform without e-mail marketing ... or might you send that customer e-mail campaigns during May/June/July, when that customer is most likely to shop?

Use Digital Profiles to "amp" your e-mail marketing program. Get to know your customers, and then use the data to make actionable marketing decisions that improve sales and profit!

MLV

Y'all have heard of Customer Lifetime Value (called CLV or LTV), right? Another 10% of you calculate the metric and know what the rig...