October 03, 2018

Response Grid

You create Response Grids, right? RIGHT??

I ran twelve queries to create this table. For each month for the past year, I segmented 1-48 month buyers and measured their response in the next month. Then I averaged the results of all twelve months, and here we go, we have the table!!

Each color band represents customer segments with "comparable" monthly response rates. Look at the red numbers ... those are the most "loyal" buyers ... with monthly response rates greater than 20% ... heck, these customers have at least a 1-in-5 chance of buying next month. Wow! Notice that they're at 11+ life-to-date orders and they generally last purchased 1-3 months ago. They are the best customers.

In fact, in the table any customer with a monthly response rate >= 10% is likely to be considered "loyal". This is the audience that the CRM industry lusts over. This is the audience that you read about in trade journals.

Tomorrow I'm going to share with you an interesting tidbit about this audience, ok?

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