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Using a purchase recency/frequency framework to monitor the health of your customer file, gauge your customer acquisition and retention programs, and target email campaigns.
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2. Recency& Frequency classifications are powerful because they can serve as surrogates for determining level of customer engagment 3.
Your customer file Lets put it in perspective... 4. know your brand been to your site "universe" customers 5. know your brand been to your site "universe" customers customer acquisition 6. know your brand been to your site "universe" email subscribers customers retention 7. In Summary The R/F Model 8.
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11. Sub Title Building the Framework 12.
Season 1 Season 2 Season 3 Jan Apr Jul 13. 0 - 3 months 3 - 6 months 6 - 9 months 9+ months
Recency Groups: Season 1 Season 2 Season 3 Jan Apr Jul 3 months 14. 0 - 3 months 3 - 6 months 6 - 9 months 9+ months
Recency Groups: Season 1 Season 2 Season 3 Jan Apr Jul 3 months 15. 0 - 3 months 3 - 6 months 6 - 9 months 9+ months
Season 5 Season 6 Season 7 Jan Apr Jul b/i = 1000 16. 0 - 3 months 3 - 6 months 6 - 9 months 9+ months
Season 5 Season 6 Season 7 Jan Apr Jul 3 months $ #buyers = 230 17. 0 - 3 months 3 - 6 months 6 - 9 months 9+ months buyer rate=#buyers/b/i Season 5 Season 6 Season 7 Jan Apr Jul $ #buyers = 230 =230 /1000 =23% b/i = 1000 calculate the group'sbuyer rate $ 18. Title Calculate buyer rates for each recency group 19.
Seasonal buyer rates 20. Consider what happens in Season 6 to a customer's recency classification... The Evolution of your R/F customer file 21. 0 - 3 months
Season 5 Season 6 Season 7 Jan Apr Jul = "buyer" 22. The R/F purchasing model Framework is easy 0 - 3 months 3 - 6 months 6 - 9 months 9+ months
Season 5 Season 6 Season 7 Jan Apr Jul = "non-buyer" 23. 0 - 3 months 3 - 6 months 6 - 9 months 9+ months
Season 5 Season 6 Season 7 Jan Apr Jul 24. Sub Title Lets take the example to Season 1 - your first season in business... 25. New Buyer Season 1 0 - 3 months 3 - 6 months 6 - 9 months 9+ months Recency Group Season 2 Season 3 Season 4 Season 5 Season 6 Season 7 26. New Buyer Season 1 0 - 3 months 3 - 6 months 6 - 9 months 9+ months Recency Group Season 2 Season 3 Season 4 Season 5 Season 6 Season 7 ? 27. New Buyer Season 1 0 - 3 months 3 - 6 months 6 - 9 months 9+ months Recency Group Season 2 Season 3 Season 4 $ Which outcome would you prefer? $ Future Value 28. New Buyer Season 1 0 - 3 months 3 - 6 months 6 - 9 months 9+ months Recency Group Season 2 Season 3 Season 4 Season 5 Season 6 Season 7 ? 0 0 1 1 1 1 0 29. Sub Title Over the years your customer database evolves.The more successful you are at keeping customers RECENT, or keeping them active, the more value you will extract from your acquired customers over time 30. New Buyers Season 1 0 - 3 months 3 - 6 months 6 - 9 months 9+ months Recency Group Season 2 Season 3 Season 5 Season 6 Season 7 Season 4 31. Sub Title In closing... 32.
The RF customer file model... 33.
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Extentions of the idea... 35. "If you're not segmenting your data in some business-savvy way, if you're still talking about averages, you're making gross errors in your analysis -me