Promotion Segmentation

Customer List Segmentation

In Promotion, or Customer List Segmentation, the goal is to use predictive statistical methods to identify names in a particular file that have the highest propensity to take a specific action or match a specific profile. For example:

Respond to a promotion
Convert from qualified lead to established customer
Become a multi-buyer
Purchase from a specific product category
Shift into inactive status
Place a high value order
Have a high long term value
Have a high profit margin

List segmentation is more of a tactical tool used to implement specific promotions that were developed around the company’s strategic goals.

In the past, list segmentation was based on assignment rules (such as R,F,M breakdowns). Current best practices for implementing list selection methodologies involve the use of one or more predictive statistical models. Each model is calibrated to use the most relevant available data and calculate the probability that each customer will take the desired action (respond, make a high value purchase, develop into a good long term customer, etc.).