As Internet sales become a larger part of total sales and as more Web pure-plays enter into the catalog business, it becomes increasingly important to understand the differences between buyers across these channels. Changes to house file segmentation can help shed some light on how Internet and catalog buyers behave and how often they should or should not be mailed a catalog. Depending on results, these changes can cut down on catalog production costs.
Most catalogers use a standard house file segmentation consisting of RFM only. Some catalogers have added new house file segmentation consisting of purchase channel and RFM. We propose – if your database and order entry system allow – layering in advanced house file segmentation that goes a step further and consists of original source channel and purchase channel and RFM. Here’s an example:
Several of our clients are testing this advanced segmentation right now. We are looking forward to reading results and testing mail strategies over the months and years to come.
Anna-Lisa Ulbrich is circulation and marketing manager for San Rafael, CA-based consultancy Lenser.