By
Jim Coogan
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Beyond Square-inch Analysis
Databases contain distinct subgroups of different types of merchandise buyers. Buyers of one type of merchandise may be high-profit repeat customers; buyers of another type of product may have a much lower lifetime value.
Refine your buyer groupings and realize significant opportunities. Segmenting buyers into merchandise groups will show you how to optimize the frequency and seasonality of mailing different types of merchandise buyers. Extract the best merchandise buyers and suppress less profitable merchandise buyers. Then model the best buyers at the cooperative databases. Models built on tightly defined buyer groups deliver better response and get you the higher value customers.
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Jim Coogan
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