Reactivation Candidates Group Together Based On What They Purchased

In this Factor Analysis, each Merchandise Category (17 of them, labeled MR01 to MR17) is plotted in two reduced "factors". If there is little distance between categories, then customers view the categories in a similar manner and likely cross-shop the categories. If there is a lot of distance between categories, then customers do not cross-shop the categories.

Two categories stand out for this brand ... Category 02 and Category 17.

Let's go back to our 18 month 1x buyers who only bought one item in a first order. Let's select those who only bought from Category 02. Among the fraction that repurchase in the next year, what categories does the customer purchase from?

• 30% purchase from Category 02.
• 15% purchase from Category 17.
• 55% purchase from the other fifteen (15) categories.

How about Category 17?

• 7% purchase from Category 02.
• 47% purchase from Category 17.
• 46% purchase from the other fifteen (15) categories.

For the most part, the original purchase category strongly influences future purchase behavior. Knowing that, take advantage of it!! Why not leverage email marketing among lapsed buyers to feature the category of a first purchase, as well as adjacent categories? Give your customers a fighting chance to reactivate!!

We stacked another win onto our Reactivation Playbook.