September 15, 2010

Digital Profiles Part D: The First Four Digital Profiles

Let's take a look at the first four digital profiles in our sample dataset.

The first digital profile is called "Gold Mine", and for good reason! There are 8,600+ customers in this digital profile, and these customers can be expected to spend $841 per customer in the next twelve months!

Look at the attributes that comprise this segment, the attributes that are shaded. These customers purchase many items per order, they buy from the retail channel, and they buy from all online channels. Notice that these customers buy from all merchandise divisions as well ... we so often talk about customers being "multi-channel", but so much more often, it is critical to have a diverse customer base willing to buy from all merchandise divisions. That being said, 73% of this audience buys from at least two of the following physical channels ... phone, online, and stores.

In other words, this segment is a "Gold Mine", they do everything you could possibly want!!

The second Digital Profile is called "Multi-Channel Mavens". These customers are not as valuable as are "Gold Mine" customers, spending $503 in the next twelve months. These customers do shop from all online channels, and do purchase from retail stores. However, these customers fail to shop merchandise divisions one, two, three, and nine ... this dropoff in merchandise preference yields a customer that is simply less valuable.

The third Digital Profile is called "The Digerati". These buyers will spend $291 in the next twelve months, so clearly, these buyers are not as valuable as prior Digital Profiles. These customers purchase more items per order than any other Digital Profile. These customers are unlikely to shop in stores, and have yet to adopt the Mobile channel. Still, these customers focus purchases in all remaining online channels. Notice that these customers prefer merchandise divisions one, two, four, and five ... a subset of the entire merchandise assortment ... this is a problem that multi-channel brands have, a problem where the online audience skews to a merchandise assortment that is not representative of the total business.

The fourth Digital Profile is titled “A Long Drive”. Customers in this profile will spend $211 in the next twelve months, a bit below the overall average in this analysis. These customers have a very specific merchandise preference, in divisions four and five. These customers generally live outside of retail trade areas, and are skewed a bit to very traditional zip codes. Online, these customers are skewed to web purchases, e-mail purchases, and search purchases, and are not pre-disposed to purchase via mobile or social channels. We might infer that these customers live in rural areas, not near retail stores, given what the data indicates. Given the dramatic skew to merchandise divisions four and five, one might infer that there are many opportunities to personalize the website experience and to work on targeting strategies for this unique audience.

Four Digital Profiles are in the books, twelve to go. Hint: We've covered many of the high-value profiles already!


  1. Hi Kevin,

    I am loving this series and look forward to the rest. From a curiosity standpoint how different would the above table look if it highlighted values greater than one standard deviation above the mean (as opposed to only greater than the mean).

  2. For any of the percentages, you can calculate the metric yourself!

    Yes, it will look a bit different, no doubt about that.


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