Tag Archives: Customer State

Offline Engagement Modeling

DataBase Marketing, Driller Q & A, Measuring Engagement, Newsletters,

Jim answers questions from fellow Drillers
(More questions with answers here, Work Overview here, Index of concepts here)

Q: In our business (airline) – particularly on the loyalty side – we’ve been using both RFM as well as lifetime and current cumulative totals. For instance in our mileage program, we look at both lifetime miles earned and used as well as current balance.

Does that seem appropriate?

A: Well, I guess the question is appropriate for what purpose, what action are you driving to?

For example, if you were to divide metrics into “strategic” and “tactical”, meaning “for management / long-term planning” and “for campaigns / taking short-term action” then you get different answers.

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Marketing Bands: the Numbers

Analytical Culture, DataBase Marketing, Marketing thru Operations, Measuring Engagement,

(A post by post index of this Marketing Bands Series is here.)

Just wanted to add a quick piece about the results of Optimizing the Bands (see Band Model) – this is the Marketing Productivity Blog after all!  Thanks Moe for the reminder. 

As we Optimized, there were changes in budget allocation by Band, and as a result there was an increase in Net Customer Value – the goal of the Optimization program in the first place.  For those of you not following the whole story, the budget remained constant, we simply allocated it to the highest and best use through testing.

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Online Marketing Bands

DataBase Marketing, Measuring Engagement, Web Analytics, ,

So, we had some good “translation” discussions on the HSN Marketing process document, and the idea that there are a couple of ways to look at “Segments”. 

It’s my belief that if you start with Communication Segments (an idea we finally arrived at with the HSN Optimization in 1993) and then move to Visitor or Customer Segments, you will end up with a clearer, more actionable picture in the end. 

If each Band has a single Objective, and you Optimize to this single Objective, you will end up Optimizing the entire system because Visitors / Customers naturally flow down through the Bands as they pass through the LifeCycle.

There’s really no concrete benefit, on either side, to send the same message to all the folks in these different Bands.  That approach is inefficient at the least and irritating to the customer at the most!

Continue reading Online Marketing Bands →