October 25, 2010

Digital Profiles: Best Customers Downgrade Their Loyalty

One of my favorite ways to use Digital Profiles is to analyze where a customer moves from year to year. We talked about this topic previously, but it is an interesting and important topic, so we'll re-visit it today.

Take the "Gold Mine" profile from our analysis.

Let's look at all of last year's "Gold Mine" customers, and see what Digital Profile they migrated to this year, if the customer purchased something.
  • "Gold Mine" = 2,913.
  • "Multi-Channel Mavens" = 746.
  • "The Digerati" = 353.
  • "A Long Drive" = 359.
  • "Shop Online, Buy In Store" = 401.
  • "Direct Newbies Looking For Eight" = 136.
  • "Online One/Twos" = 231.
  • "Ship It To Me" = 108.
  • "Retail Fanatics" = 748.
  • "Retail 4/5/6" = 387.
  • "Retail 1/2/4" = 258.
  • "In And Out" = 278.
  • "Retail 1/2/3" = 240.
  • "Retail Newbies Looking For Eight" = 92.
  • "Retail 1/2" = 173.
  • "Rotary Phone" = 19.
Notice that a large chunk of customers stayed in the most productive Digital Profile (Gold Mine).

Notice that a much larger chunk of customers who purchased "downgraded" to lower-quality Digital Profiles.

You'll see this over and over again. Best customers seldom stay as "best customers". Customers evolve and change over time. Our job is to constantly refresh our pool of best customers with new customers from new sources.

Use your Digital Profiles to understand how customers migrate in and out of your best segments!

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