The "bribe rate" is one of the most important metrics you can track.
The "bribe rate", of course, is the percentage of orders during any period of time that include a discount, a promotion, or at least one sale item. The bribe rate is often inversely correlated with brand loyalty.
If you think this metric needs to be on every single performance dashboard, you are right.
If you think this metric makes for a perfect segmentation variable, you are right!
Segment your customer base into high, average, and low bribe rates. It matters!
Subscribe to:
Post Comments (Atom)
Seasonality is Amplified
Back to our table from yesterday, reviewing customers with two life-to-date purchases, measuring how they perform in the next month based on...
-
It is time to find a few smart individuals in the world of e-mail analytics and data mining! And honestly, what follows is a dataset that y...
-
It's the story of 2015 among catalogers. "Our housefile performance is reasonable, but our co-op customer acquisition efforts ar...
-
This is where we're headed: Let's say you want to invest an additional $100,000 in paid search. You should be able to see a p&l,...
Great summer segment! Do you also take into account the number of visitors who were exposed to, but didn't take the bribe? I am just thinking that the bribe rate is dependent on the type and magnitude of the bribe, so would you have to keep the bribe constant over a period of time to get meaningful trends?
ReplyDeleteMany thanks,
Michael
Yours is a hypothesis that can be tested, so test it!
ReplyDeleteIt has been my experience that the type and magnitude of the promotion are largely irrelevant --- you simply record in a database when customers respond to a promotion/discount, and then measure their subsequent performance to see if bribing the customer is a bad thing.