Dig for Gold in Your Housefile

Tip #1: Consider your segmentation criteria and methodology each time you mail.

In cataloging it’s common to see the same segmentation strategy followed every year. Marketers may update transactional activity after each mailing, which changes the values for RFM and product purchase information. But how often do you revisit the stratification capability of the variables used in segmentation? Is the top-to-bottom-segment ratio still as great as it was on last season’s campaign? Should new behavioral characteristics that would help differentiate between good- and poor-performing groups of names be considered?