September 22, 2010

Digital Profiles Part G: Profiles 13-16

It's time to describe the final four Digital Profiles!

Digital Profile #13 is called "Retail 1/2/3". 99% of these customers purchased in stores last year, and their merchandise preference was in merchandise divisions one, two, and three. These customers purchased 2.0 times last year, which isn't bad, but they are only expected to spend $144 in the next twelve months, considerably below the company average. These customers also seem to like merchandise division seven, they are more likely than average to live in retail trade areas, and they are more likely than average to be first-time buyers. As marketers, we should always pay attention to any Digital Profile that is comprised of first-time buyers.

Digital Profile #14 = "Retail Newbies Looking For Eight". These customers are more likely than average to be first-time buyers, with 96% shopping in stores, and 76% buying from merchandise division eight. These customers purchased 1.3 times last year, and are forecast to spend just $82 in the next twelve months, well below the company average. Obviously, the challenge is to somehow encourage these customers to experience more of the brand than just one merchandise division in just one channel across just one purchase ... and that's easier said than done! Sometimes, you simply have customers that are not going to be productive, end of story!

Digital Profile #15 = "Retail 1/2". Speaking of customers that are not going to be productive, "Retail 1/2" is a Digital Profile that isn't very productive!! In the next twelve months, these customers will only spend $83. 85% of this Digital Profile purchased in retail stores, with customers almost exclusively buying from merchandise divisions one and two. Thirty percent of these customers were first-time buyers last year. Interesting to note: 16% of these customers shopped via the telephone last year.

Digital Profile #16 = "Rotary Phone". This is a very interesting Digital Profile. 66% of the customers in this Digital Profile purchased last year via the telephone, placing only 1.1 orders last year. In the next twelve months, these customers are forecast to spend just $85. 72% of these customers purchased from merchandise division four ... so the marketer should be able to easily explain why customers shopping over the telephone are pre-disposed to purchases in just one merchandise division! A whopping 60% of customers in this Digital Profile do not live in a retail trade area, wow! Zip Code Forensics data strongly suggest that these customers live in traditional catalog-shopping zip codes, meaning that these are rural shoppers, and are probably in the top-half of the Baby Boomer generation. 32% of these customers were first time buyers, suggesting that the business used catalog marketing to acquire new customers via the telephone.

That's it!!! We've described each of the sixteen Digital Profiles. Up Next: A series of blog posts describing how we can use Digital Profiles to understand customer behavior in an actionable manner.

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