Transformational customers have different interests than do Traditional customers, the customers that generated billions in profit for the catalog industry.
Take a look at the Transformational section of the table. When you don't mail customers to these customers, you still maintain 76.6% of demand. In other words, these customers shop you for reasons other than catalog marketing. Traditionals must be mailed catalogs. Transformationals practically ignore them.
We do Transformationals a disservice with our matchback analytics. As you can see, matchbacks would tell us that the customer generates $5.94 demand, while testing suggests that the customer spends $1.39 because the catalog was mailed. This customer shops for reasons other than catalog marketing.
So why mail this customer? You lost $0.24 profit.
Now, granted, instead of 21 mailings a year, maybe you can get away with four or five or six. Save some money!
It's not hard to score your file into Traditionals, Transitionals, and Transformationals. Contact me (click here) and we'll get you set up!!
Helping CEOs Understand How Customers Interact With Advertising, Products, Brands, and Channels
December 12, 2011
Transformationals and Tests
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