How to Identify Right Shopper for Promotions / How to Categorize Shoppers based on Loyalty

Identify Profitable Shoppers using Statistical Modeling

Not all shoppers are profitable - the statement sounds bit confusing. But a careful analysis shows that there are some who buy only during Mark Downs, select low margin products in discounts etc. In the previous posts What are the steps in NBO (Next Best Offer) to give Personalized Promotion and Find Right Channel we get an idea of how to select a right product for promotion and what would be the appropriate time for sending the promotion/offer

Well before attaching an offer to the customer, one needs to select if the customer is profitable for the loyalty program

There are many methods to check if the customer is profitable. This is is based on the past transaction history and applying methods / models on them

CLV and NPV are some techniques to use in the current scenario. Segmentation of customers based on the above would provide a good insights

This is a challenge for many US Retailers whose customers enroll in multiple loyalty programs (Average US household enrolls to 23 loyalty programs) and hip hop to other retailer based on Sale/Discount. Price plays an important role in this

According to a study by +McKinsey on Marketing & Sales targeting High Value customers is one of the way to improve the Basket Size (both items and Value). One of every retailer's goal should be to Increase the Basket Size by appropriate promotions

Payment Marketing Analytics - Something to Watchout in 2013

How to Push Messages Real-Time at Point-of-Sale or Payment

Payment Marketing is catching up now. This provides the Bank / Retailer to push messages / offers on real-time to their customers.

What is Payment Marketing?

Payment marketing is a mode of marketing using the Customer's payment card information and provide the customers with relevant offers / promotions etc. with the help of a layer built on top of the existing POS Terminals.

We have already seen the importance of Payment card companies in the field of marketing. This is another layer of it

How it Works?

The lifecycle of Payment Marketing revolves around understanding the customer through analytics. Swipely, a Payment marketing technology integrates with the payment network and collects data whenever the payment is made. The data is analysed and the insights are fed back to the marketing
system, which can be used to

• Send Personalized Messages (Thank you message etc)
• Cross-Sell products/Services
• Inform corrective actions

The above can be expanded based on NBA strategy. The advantages of Swipely is the ease of upgrading - no hardware / software is required and no changes in customer's payment m

echanism

DriveItNow uses the Credit, Criteria and Collateral to provide real payments

Widely used Segmentation Products / Solutions

Free Segmentation Frameworks / Products

We had an indepth analysis of various segmentation frameworks for profiling customers in Segmentation Standards / Framework. Here we will look in more detail on some readily available Segmentation products that will accelerate segmentation/clustering.



Prizm's market segmentation comes-up with beautiful segments for a particular Zipcode. If you want to open a Store in the locality ZIP Code 65231, Auxvasse, MO. Here are the results from the search (http://www.claritas.com/MyBestSegments/Default.jsp?ID=20#)

PersonicX is a household-level segmentation system including 70 clusters and 21 life stages. The PersonicX suite helps to know and anticipate customers’ demographics and buying behaviors, conduct market analysis, plan customer acquisition strategies, and create cross-sell, up-sell and retention campaigns that are truly targeted, personalized and powerful.





Forrester's Social Technographics data classifies consumers into seven overlapping levels of social technology participation. Based on their proprietary Consumer Technographics survey data, they can
share with how social participation varies among your consumers globally and help plan a targeted social technology strategy.

+Monetate's LivePredict is an automated segment discovery product that automatically identifies valuable customer segments and the attributes that define them. This gives marketers the ability to
instantly take action by targeting offers and content specifically to those segments

+OfficeMax is using LivePredict to identify highest and lowest performing segments at both brand and campaign levels