In the past three years, the simulations all show the same story ... the very best "catalog" customers are not being contacted enough.
Look at the data in this graph ... going from left to right we have increasing 12-month buyer customer quality (i.e. best customers are on the right).
The very best customers (big blue arrow) are worth an order of magnitude more than the next-best customer segment. They get just one more catalog, but are worth SIXTY (60) additional dollars of profit.
These customers should get more catalogs. Period.
Not just one or two ... quite possibly twenty (20) more catalogs per year.
It requires a complete re-thinking about how you construct a contact strategy.
It requires a complete re-thinking about how you score your customer base so that only the best "catalog" customers are treated this way.
It requires that you or your favorite agency (Cohere One, Belardi/Wong etc.) create a simulation environment so that you can plainly see how this is happening.
It requires your printer to help you develop 16-32 page dynamic catalog content (DCC) mailings with a personalized merchandise assortment.
It requires you to mail all of the remaining customers FEWER catalogs.
In other words, the process of Bifurcation is tearing the traditional 9-18 contacts per year strategy apart.
- Old thinking = 9-18 contacts per year, with various segmentation strategies to "target" various customers.
- Modern thinking = 30-45ish contacts per year for a small number of customers, 0-4 contacts for nearly everybody else.
I've got the data.
I've built the sims.
This is where things are headed.
I'm telling you this ... for free.
Go do something with the information, ok??