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Dividing your customer database into a few segments based on some logical scheme and developing a marketing strategy for each segment. Always setting aside a control group in each segment that gets a generic marketing promotion (or none at all) so that you can measure the effectiveness of the promotions. Differentiating the promotions to each segment by personal data in the database. Since you bought the ski out t last October, you may want to consider a annel nightgown to wear on those cold evenings. Finding a way to collect the data on what happened after you sent the promotions. If you can t get the data, you may be wasting your money on the promotions.
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Creating more than eight or nine segments. Even the largest companies don t have the marketing staff to think up and implement unique marketing programs for lots of different segments. If you have divided your database into 10 or more segments, you have made a serious mistake. Forgetting to create and use control groups. An advertising agency created a frequent user segment with special bene ts for a client. The client spent more than a million dollars promoting to the segment, and it seemed to work. After 2 years, the client asked the agency to provide the value the client had received for the million dollars. Unfortunately, there was no control group, so the agency could not provide this information. The agency lost the account. Not revising your segments after each promotion. We are supposed to learn something from the segments. If you just promote and promote, and never revise, you may be wasting your money and not learning anything. Collecting a lot of data about customers that you never use for anything. Everything has a cost. Getting and updating data is expensive. Every time you add a piece of information to your database, ask, How are we going to use this to make money How can we use this right away to modify customer behavior If you haven t got a good answer to these questions, don t collect and store the data. Spending too much on building a data warehouse that will never pay its way in terms of increased sales through promotions based on the data in the warehouse. Creating segments that are self-ful lling or that do not allow your creative team to create a signi cant differentiation.
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1. Why do most marketers choose segment marketing over one-toone marketing a. One-to-one marketing does not work.
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Segments are easy to create. They don t know how to do one-to-one marketing. Segments cost less but produce similar results. One-to-one marketing produces a much higher lift in sales. Which of the following are not considered demographic data a. Age b. Preferences c. Ethnicity d. Income e. Value of home What technique does iDine use that most marketers are not using today a. Creating customer segments b. Credit card matching c. Air miles as a reward d. Cash as a reward e. Transactions viewed on the Web Which is not listed as a feature of the Australian National Leads program a. Web customer response b. Customer segmentation c. Nightly trawling of the data warehouse d. Prediction of customer propensity to purchase e. Offers based on transactions What is the best strategy for Quadrant 3 the low lows a. Retention b. Expansion c. Ignoring them d. Repricing their services e. Rewards for good behavior Which was not a result of the Kmart mothers-to-be program a. Hispanic baby product sales were up 25 percent. b. Cross shopping was reduced by 35 percent. c. Twenty-one percent of top-decile shoppers increased their spending by 40 percent.
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