August 23, 2010

Summer Segmentation: New Technology

In your data warehouse, create segmentation variables for any customer using any form of new technology.

Then take an old-school campaign ... like a postcard mailing, and overlay those who, for instance, those who have used an iPad to access your website and buy merchandise. You are likely to see that those who use new technology are less responsive to old technology (like a postcard).

Just like that, you have a suppression variable for subsequent old-school campaigns!

By the way, folks, say you are, oh, I don't know, maybe Gap. And maybe you have some trendy new promotion where you give up all of your gross margin in a way that drives a ton of sales and greatly benefits some new business model that needs you to give up gross margin to benefit their business model.

If you were in that situation, wouldn't it make sense to code the customers that took advantage of the new technology in your database, and then follow them for three months or a year to see if they ever interact with your brand again in a full-price, profitable manner?

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