January 04, 2017

What Does The Yellow Sun Mean?

Look at the Western portion of this image. You see a bright orb ... sort of like the sun.

Look at the Northeastern portion of the image. You see black ... like nighttime skies, right?

The yellow/white area is where the most loyal customers are in the two-dimensional depiction of the customer file. These customers purchased 12+ times in the past three years ... more than once every three months.  These are great customers!

The black areas represent customers with < 1.5 purchases in the past three years (remember, I am only depicting the twelve-month buyer file).

So all of your great customers tend to be located in the Southwest portion of the customer file.

All of your newer-to-file customers tend to be located in the Northeast portion of the customer file.

This forms the basis of your twelve-month buyer file.

Tomorrow, we'll look at one of the key attributes of this customer file.

Profit per New Customer

It's common for folks to measure cost per new customer. Total Marketing Cost = $10,000. Total New Customers = 130. Cost per New C...