Deal With a Customer Segment
Disassemble your customer segment into customers who share similar tastes and buying habits. In profiling start with the premise that you don’t would like to deal with a client segment, but instead an individual client. Then apply demographic and behavioral information to create a useful snapshot of the client.
Apply all this information to break your clients into clusters that share purchasing traits. Start out to cumulate this information from your existing client database noting such things as frequency of purchases, buying habits, reactions to marketing proposes, and repeat purchases. Then start up with your perceived prospects applying alternate sources of data from bought sources.
You may wonder why you should not just follow the old technique of “regency-frequency-monetary” (RFM) analysis. Manifestly, profiling and modeling add to the cost of your mailing project. The understanding is that for RFM to work effectively you need information on the customers purchasing habits, and that’s the scratch! It only works because your existing client and is of no use in bumping potential customers.
