Ok, we've talked about a lot of attributes that appear to make a difference when evaluating new customers who fail to purchase again. Let's be honest, you've found the content exhilarating.
Now you want to do something with it.
First, you're probably wondering which attributes are most important? If you could only act on two or three attributes, which ones should you focus on?
Good question.
To help, I created two models for the business I am analyzing. Logistic Regression models. One for customers who purchased just one time then lapsed (recency >= 13 months since purchase), one for customers who purchased two or more times then lapsed.
Here is the actual outcome of the Logistic Regression model for lapsed customers with just one life-to-date purchase.
And this is the outcome of the Logistic Regression model for lapsed customers with 2+ life-to-date purchases.
This is the point where many of you are now snoozing. WAKE UP!
Let's make this a bit more enjoyable.
Here is a Top 10 List of the Most Important Attributes for One-Time Lapsed Buyers (drum roll, please):
Number 10 = Purchased Merchandise Category #4.
Number 9 = Purchased Merchandise Category #13.
Number 8 = Purchased Merchandise Category #16.
Number 7 = Purchased Merchandise Category #17.
Number 6 = First Purchase via Email Marketing.
Number 5 = Winning Items are GOOD!
Number 4 = First Purchase via Call/Contact Center.
Number 3 = Number of Categories Purchased From.
Number 2 = Months Since First Purchase.
Number 1 = Amazon/Marketplace Orders (Highly Negative).
If you want to reactivate a customer (in this example), do not work hard to reactivate the Amazon/Marketplace customer. The customer said no to you for more than a year, and is very likely to continue to do so.
This brings up an interesting point.
If you want to reactivate a customer, you really have three choices.
- Spend Money.
- Experiment.
- Save Money.
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