February 07, 2012

How Do I Decide Who Is Judy, Jennifer, And Jasmine?

There are two key issues to consider, when deciding how to segment Judy, Jennifer, and Jasmine.

Issue #1 = Weighting Dollars:  A telephone order in 2002 is virtually meaningless.  An online order in 2008 has some meaning.  A mobile order in 2012 means a lot.  I like to use the following weighting of historical orders/dollars (these weights are company-dependent ... more Judy-type customers usually causes the weights to be greater ... more Jasmine-type customers usually yields smaller weights).
  • Orders 0-12 Months Ago = Weight of 1.00.
  • Orders 13-24 Months Ago = Weight of 0.50.
  • Orders 25-36 Months Ago = Weight of 0.25.
  • Orders 37-48 Months Ago = Weight of 0.15.
  • Orders 49-60 Months Ago = Weight of 0.10.
  • Orders 61+ Months Ago = Weight of 0.05.
Issue #2 = Weighting Channels:  This one, of course, is important.  Each advertising channel gets a weight.  Now, we can debate the weights until the cows come home, and there isn't a right or wrong answer here, so pick up a broom and do some work.  Here's a starting point for some of you ... my weights are client specific, of course.
  • Mail Orders = Weight of 0.00.
  • Telephone Orders = Weight of 0.15.
  • Online Orders Matched Back to a Catalog = Weight of 0.30.
  • Search Orders Matched Back to a Catalog = Weight of 0.40.
  • Email Orders Matched Back to a Catalog = Weight of 0.50.
  • Pure Search Orders = Weight of 0.60.
  • Pure Email Orders = Weight of 0.70.
  • Online Advertising Orders, No Offline Interaction = Weight of 0.75.
  • Pure Online Orders = Weight of 0.80.
  • Mobile, Social, Flash Sales Orders = Weight of 1.00.
  • Tablet Orders:  Right now, I don't evaluate these different than online orders, we need proof that these orders lead to different subsequent behavior, different than classic e-commerce.
Tomorrow, I'll show you a series of examples of how to calculate Judy, Jennifer, and Jasmine.

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