Segmentation

Profile Data
•Provided by subscriber during registration
•Provided as result of surveys
•Offline data you maintain or overlay

Response Data
•Email click-throughs
•Post-click info collected on site
•Abandoned purchases
•Amount spent

Benefits
•Identify most valuable customers
•Learn about user behavior and activity
•Develop additional business from customer groups
•Identify under performing groups
•Position products/services to meet
•specific needs

Determining segments
Marketers create powerful selects when
they combine profile data and response
data

Examples:
•Show me all femalesbetween the ages of 25 -45who clicked in the last 3 monthsand purchased
•Show me allmalesinCaliforniawhoclicked on Offer A,went to the website,but did not purchase.

Good tools make this easy to accomplish

Identified 3 segments:
1.Browsed site
2.Added an item to the shopping cart
3.Did nothing

Sent follow up email
•19x lift in revenue per email for those who put item in shopping cart
•Browsers had a 10x lift

Effective Segmentation – Quill
•Segment by 3 business sectors (content)
  •Government, education, business
•Segment by customer activity (offers & strategy)
  •Web-reactivation, Quill reactivation, channelmigration, retention
•25 –40 versions each week
  •If in “retention”group, strategy is to increase average ordersize
Results:
 Clickthroughs: 2% -10% Conversions: over 30%!!!
  •E-mail assisted sales have gone from $1 million to $9 million
   per month. Cost is about 1% of sales
  •Cross-channel customers –spend 7xmore than single channel customers!