Customer Segmentation and Customer Migration

19 Aug 09 - Mark Klein

There were a lot of “I told you so’s” going around our offices last week.
 
One of our clients has really been leveraging their segmentations, with different messaging and different mail frequency to the various groups in their customer base. From this activity our client generated some reports with concrete proof that their two middle tier segments, the Underperformers and the Faders, were the segments most susceptible to influence by their direct marketing campaigns. This result reinforced our hard-learned experience that these middle tier customers are the best candidates to move to higher ranking segments, and these mid-tier segments are the best places to find incremental revenue.
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