April 24, 2019

Hillstrom's Targeting: Welcome Program Segmentation

Let's think about it this way ... the first-time buyer is part of a Welcome Program if Recency = 0/1/2/3 months old. It's the prime development period in the life-cycle of the customer. This is it!!

Because the customer is new, the customer ranks "low" in the quality segment. Here's what it looks like for the business we're analyzing.
  • "A" customers = 0.08% are in a Welcome Program.
  • "B" customers = 0.5% are in a Welcome Program.
  • "C" customers = 2.6% are in a Welcome Program.
  • "D" customers = 8.9% are in a Welcome Program.
  • "F" customers = 23.6% are in a Welcome Program.
In other words, this is the place where you move a customer "up the ladder", if you will.

Make sure that Merchandise Preference is adequately incorporated into your email marketing program, especially when it comes to your Welcome Program.

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