Drilling Down Home Page Turning Customer Data
into Profits with a Spreadsheet
The Guide to Maximizing Customer Marketing ROI The Guide to Maximizing Customer Marketing ROI

Site Map


Book Includes all tutorials and examples from this web site
.

Get the book!

Purchase Drilling Down Book

Customers Speak Up on Book & Site


About the Author

Workshops, Project Work: Retail Metrics & Reporting, High ROI
Customer Marketing

Marketing Productivity Blog

8 Customer
Promotion Tips

Relationship
Marketing

Customer Retention

Customer Loyalty

High ROI Customer Marketing: 3 Key Success Components

LifeTime Value and
True ROI of Ad Spend

Customer Profiling

Intro to Customer
Behavior Modeling

Customer Model:
Frequency

Customer Model:
Recency

Customer Model:
Recent Repeaters

Customer Model:
RFM

Customer LifeCycles

LifeTime Value

Calculating ROI

Mapping Visitor
Conversion

Measuring Retention
in Online Retailing

Measuring CRM ROI

CRM Analytics:
Micro vs. Macro

Pre-CRM Testing for
Marketing ROI

Customer
Behavior Profiling

See Customer
Behavior Maps


Favorite Drilling
Down Web Sites

About the Author

Book Contents

 What is in the book?
 Productivity Blog
 CRM   
  Simple CRM
 Customer Retention
 Relationship Marketing
 Customer Loyalty
 Retail Optimization
 Telco/Utility/Services
  Visitor Conversion
  Visitor Quality
  Guide to E-Metrics
  Customer Profiles
  Customer LifeCycles
  LifeTime Value
  Calculating ROI

  Workshops/Services
  Recent Repeaters
  RFM
  Retail Promotion
  Pre-CRM ROI Test
  Tracking CRM ROI
 
Tutorial: Latency
  Tutorial: Recency
  Scoring Software
  About Jim
  Consulting
  Praise
  Contact
  FAQ
  Search
 
Downloads
  Privacy

Eight Tips for Customer-Focused
Marketing Promotions

Jim's Intro: These are patterns of behavior seen repeatedly in customer marketing, and can be used to increase profits.

1. Always advertise where the behavior you want to create is.  If you want clicks, advertise where people are clicking.  If you want buyers, advertise where people buy.

2. The media and method used to acquire a customer has a very large effect on the potential value of the customer.  Customers from search engines will have different buying patterns and potential values than customers from banner ads.  Measure these differences.

3. 50 percent to 60 percent of your customer base will be one-time buyers or visitors.  Accept it.   You'll waste a ton of money trying to change it, and it's not going to change.   One-time buyers who bought multiple items on the first purchase are a possible exception.  Try them first.  Then try one-time buyers with the highest order value.  If these don't bite, none of the one-time buyers will.

4. The only chance you have at getting a first-time buyer to purchase again is to contact them quickly after the first purchase.

5. One-time buyers who return their only purchase CAN be better marketing targets than those who don't return their purchase - IF the customer service experience they have in dealing with the return is outstanding.

6. Customers on average will buy down in price over their LifeCycle; unless you take specific action to influence this behavior, the average order price falls over time.  For this reason, buyers who "go cheap" on the first purchase usually have lousy future value.

7. One $50 1st purchase customer is worth more than two $25 1st purchase customers.  See #6 above for the reason.

8. Resend a promotion to the same people.  You can often get 50% of the first response rate if the original promotion was a targeted one.  It's OK to send exactly the same promotion, can be better to send slightly different copy, like "2nd chance!"
--------------------------------------------------
This ends the tutorial, which is based on some of the concepts outlined in my book:
Drilling Down - Turning Customer Data into Profits with A Spreadsheet.

Congratulations!  You know the techniques used to predict the potential value of customer groups based on their Recency.  I encourage you to do a simple Recency study on any customer group you have the data for.  You will be amazed at what you see, I guarantee it.  You will find out at least 30% of your "best customers" are no longer customers, because it has been a long time since they have interacted at all with you.  You have to catch these people with some kind of "early warning system" before they defect, because once it happens, they're gone.

If you don't know you have a problem, you can't begin to fix it, and that's exactly what these Recency studies are intended to do - identify customer potential value problems and allow you to track them.

If you want to learn how to profitably address these problems, identify best customers who are about to leave you, maximize promotion response while minimizing discounts, and design profitable best customer promotions, my book tells you how to do it, step by step, just like this tutorial.  

Look, I can't just give the information in the book away.  I make my living teaching companies and service agencies these methods, and I have responsibilities to take care of.  But there's a lot of smaller businesses out there who need this information to get profitable, and that is why I wrote the book.

I think I've been pretty fair here on the site - I've given away a ton of valuable information on one aspect of the Drilling Down approach - comparing the potential value of customer groups so you can make the right choices in marketing and site design.  You have seen how I write, the teaching style, and the kinds of examples you will find in the book.  You can go ahead and test this information with your own data - I've explained to you how to do it.  

How many other authors are confident enough to give you this kind of information and methods you can use to "try before you buy"?  How many marketing books have you bought that promise "how to" information, but give you only theory?  Have you read the customer testimonials on my book?

If you want to learn the rest of the story - how to create likelihood to respond and potential value scores for individual customers, and how to use these scores to make more money marketing to customers, you'll have to get the book.  Or book some time with me.

Hey, do me a favor, will you?  If you thought the tutorial was valuable, please send a link to somebody who needs this info to start making more money with customer marketing.  The URL for the start of the tutorial is:

http://www.jimnovo.com/Recency-Model.htm

I run through customer marketing methods like this tutorial each month in my newsletter; you might consider subscribing.

Thanks for stopping by.  Good luck out there, I mean it, and look to customer behavior to guide decision making.  Behavior shows you the path, as actions speak louder than words.

Get the book with Free customer scoring software from the publisher (Booklocker)

View a list of articles for advanced users

 

 
    Home Page


Thanks for visiting the original Drilling Down web site!

The advice and discussion continue on the Marketing Productivity Blog
and
Twitter: @jimnovo

Read the first 9 chapters of the Drilling Down book: download PDF

Purchase Book

Consulting

 

Slow connection?  Same content, less graphics, think Jakob Nielsen in Arial - Go to faster loading website

Contact me (Jim Novo) for questions or problems with anything on this web site.  

 
The Drilling Down Project.  All rights reserved, all media.

 

 

 

 

 

 

You're at the end of a short tutorial on comparing the potential value of customer groups.
If you would like to take the tutorial from the beginning, click here.

  You're at the end of a short tutorial on comparing the potential value of customer groups.
If you would like to take the tutorial from the beginning, click here.

Sample of Book &
Software ReadMe

 Site Contact Info