How Plow & Hearth Uses Analytics to Determine Contact Strategies

Key segmentation variables that Plow & Hearth tracks within its customer database (and that Kwiatkowski advised the audience to do as well) include the following:

• How did they come to your website?
• Did they receive a catalog?
• What was the initial first order profit?
• What's the expected rebuy rate?
• What can you afford on subsequent contacts?

Incorporate segment knowledge (e.g., the answers to questions such as the ones above) into your profile rankings, Kwiatkowski said. Plow & Hearth is willing to prospect below breakeven based on expected 12-month spend, which is driven in large part by profile rankings. The retailer has a 12-month goal on how it manages/contacts each customer.