June 03, 2020

The Deflationary Customer

During the past two months, we've talked about customers who warrant QuickScores.
  • Print-Centric customers who can warrant MORE mailings ... compared to the vast majority of your customer base who don't need any print whatsoever.
  • Email Clickers ... you have customers who click and don't purchase (bad), you have customers who click and buy stuff (the best), and you have the 90% of your email file who does nothing and needs to be experimented on.
  • High Returners ... DO NOT MARKET TO THESE CUSTOMERS ANYMORE, OK??? It's horrible for your p&l ... do not send Email Campaigns and/or Print Campaigns to these customers.
There's a fourth customer type we're going to spend the next few weeks talking about.

That customer?

The "deflationary customer".

In a perfect business, you want an "inflationary customer". You know ... the kind that Apple possesses. The Apple customer will spend $1,000 on a phone ... while the "deflationary customer" will buy a $199 Android phone. Which customer delivers more gross margin dollars to your p&l?

So we'll spend a few weeks talking about deflationary customers.

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