Here's a customer who just purchased for the fifth time ... via models, the customer is expected to become less responsive with each month that passes.
In my projects, I leverage "Action Segment Levels" to dictate when Action Streams are implemented. Among twelve-month buyers?
- 75% Annual Rebuy Rate = Elite Customers.
- 60% Annual Rebuy Rate = Loyal Customers.
- 40% Annual Rebuy Rate = Quality Customers.
- 20% Annual Rebuy Rate = Average Customers.
- 1%+ Annual Rebuy Rate = Struggling Customers.
Among lapsed buyers?
- 15% = Lapsed Spend Money
- 5% = Lapsed Experiment
- < 5% = Lapsed Save Money
Looking at the graph above, there are several places where Action Streams make sense.
- Month 4 when the customer is about to drop out of Loyal status.
- Month 8 when the customer is about to drop out of Quality status.
- Month 11 when the customer becomes responsive due to an Anniversary event.
- Month 17 when the customer is about to drop out of Lapsed Spend Money status.
- Month 23 when the customer becomes responsive due to an Anniversary event.
- Month 33 when the customer is about to drop out of Lapsed Experiment status.
In those months, you work outside of your normal email/sms program, kicking off automated campaigns designed to keep the customer at the higher level of responsiveness. Most email service providers have these capabilities, they're just waiting for you to use them! Hire me to perform the research, we'll have your ESP implement my equations and we're off and running!
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