The Catalogue Masterclass
… the Second Half
Customer File Analysis• Essential Analysis
• Data Hygiene• RFM • Statistical Analysis• Importance of Seasonality and Products
• Segmentation and Mailing Selection• Mailing Plan and Forecasts• Segmentation / Mailing Pack Allocation
• The Value of Data Cooperatives• Lifestyle Profiling• Data Appending• Prospect / Single Buyer / Inactive Modelling
Data Hygiene... …. Improve ROI, Increase Profit• Address Correction• Salutation Optimisation• Internal Duplication• Individuals – Households• Lower Mailing Costs• Higher Response RatesAND…• Delight Customers
Address Cleaning and Salutations
Over 40% No Titles !
BUT… 97% of Titles Discoverable !
Deduplication and Matching … PLUS … … Goneaways and Deceased
So… 124,400 Records In MINUS 14, 700 DUDS ( That’s 12% of the Mailing File)
How This All Translates In To Profit
Mailing Qty
Mailing Cost
Orders Response Net Margin / Order
Dirty File 124,400 £74,600* 12,000 9.7%
Clean File 109,700 £65,800 + £2,500 extra for cleaning
12,000 11.4% + £0.44
Clean File Total
£69,300
TOTAL SAVING
£5,300 = 7.1%
Response Up By 18%Response Mailing Down by 12%Mailed Quantity Down by 12%
Profit Up By £5K*Mailing Cost @ £600 /’000
RFM – Recency, Frequency, Monetary Value- And the most important = Recency and Frequency- Make no mistake, Monetary Value is a great discriminator
for refining selections – particularly for marginal mailing groups
- Monetary Value aids VIP and Loyalty Programmes too
RFM – Recency, Frequency, Monetary Value- And the most important = Recency and Frequency- Make no mistake, Monetary Value is a great discriminator for refining
selections – particularly for marginal mailing groups- Monetary Value aids VIP and Loyalty Programmes too
Then Start to Add Other Variables to Models – But WHICH?- Intuitive Analysis
- Product Group - Seasonality- Single Buyer Catalogue v Insert v Web- Value of Last / First Order- Email v Non-Email Subscribers
- CHAID – Easily Understood By Non- Statisticians
- Propensity Scoring / Modelling and Logistic Regression – Leave it to Experts
The RFM Analysis Summary ……Where We Want to End Up
MAILING March 2013 - My Catalogue CONVERSION MATRIX
Last Total Number of Orders >>>>>Ordered Total >5 5 4 3 2 1Q1,2013 11.9% 20.3% 13.7% 7.1% 7.8% 8.5% 2.4%Q4,2012 12.3% 22.5% 10.8% 10.4% 6.9% 5.0% 4.9%Q3,2012 9.6% 14.6% 6.7% 9.7% 5.7% 6.7% 3.0%Q2,2012 11.8% 16.2% 12.4% 9.5% 10.5% 8.5% 7.3%Q1,2012 11.8% 13.7% 10.6% 10.9% 9.3% 12.2% 5.9%Q4,2011 4.3% 5.2% 8.4% 9.8% 10.3% 2.2% 1.7%Q3,2011 1.7% 6.7% 6.0% 6.2% 3.8% 2.6% 1.0%Q2,2011 1.7% 7.3% 13.9% 3.0% 5.0% 1.7% 1.4%Q1,2011 3.1% 14.9% 2.0% 2.1% 2.2% 4.2% 2.3%Q4,2010 2.5% 3.6% ??? 2.0% 3.8% 2.2% 1.6%Q3,2010 1.8% 5.2% 2.5% 1.2% 2.0% 3.4% 1.4%Q2,2010 3.0% 2.9% 4.2% 3.3% 6.1% 3.8% 2.7%Q1,2010 4.1% 7.8% 18.5% 6.0% 3.5% 2.6% 1.6%Q4,2009 1.3% 2.8% 18.5% ??? 1.2% 1.3% 0.7%Q3, 2009 1.5% 11.9% ??? ??? 2.2% 2.1% 0.9%Q2, 2009 1.2% 6.6% 3.2% 1.0% 2.1% 2.2% 1.1%
???
Do NOT Mail
Standard Recency / Frequency Audit
MAILING March 2013 - My Catalogue
Order Frequency
Mailing Volume % Conv Orders Demand
Ave Order Value
Sale per Cat
Net Margin / Order
Previous BuyersQ4,2011 5+ 2,558 20.3% 519 £20,677 £39.88 £8.08 £16.98Q3,2011 5+ 3,691 22.5% 830 £34,149 £41.17 £9.25 £17.91Q2,2011 5+ 9,745 14.6% 1,423 £65,207 £45.83 £6.69 £18.80Q1,2011 5+ 18,918 16.2% 3,063 £136,270 £44.49 £7.20 £18.54Q4,2010 5+ 2,376 13.7% 325 £12,915 £39.76 £5.44 £15.49Q3,2010 5+ 1,905 5.2% 99 £5,011 £50.52 £2.63 £13.74Q2,2010 5+ 1,365 6.7% 92 £3,717 £40.40 £2.72 £11.30Q1,2010 5+ 2,500 7.3% 182 £7,140 £39.23 £2.86 £11.37Q4,2009 5+ 210 14.9% 31 £1,144 £36.65 £5.46 £14.30Q3, 2009 5+ 751 3.6% 27 £811 £29.81 £1.08 -£1.67Q2, 2009 5+ 232 5.2% 12 £298 £24.84 £1.28 £0.82Q1, 2009 5+ 4,912 2.9% 140 £4,711 £33.65 £0.96 -£4.23Q4, 2008 5+ 216 7.8% 17 £548 £32.62 £2.54 £8.59Q3, 2008 5+ 292 2.8% 8 £508 £62.69 £1.74 £9.74Q2, 2008 5+ 20 11.9% 2 £49 £20.43 £2.43 £5.17Q1, 2008 5+ 231 6.6% 15 £548 £35.80 £2.37 £8.83FREQUENCY TOTAL 49,920 13.6% 6,785 £293,703 £43.29 £5.88 £17.23Q4,2011 5 551 13.7% 76 £2,238 £29.61 £4.06 £10.43Q3,2011 5 1,720 10.8% 186 £8,853 £47.60 £5.15 £18.25Q2,2011 5 1,872 6.7% 126 £5,128 £40.70 £2.74 £11.44Q1,2011 5 3,826 12.4% 476 £21,647 £45.48 £5.66 £17.92Q4,2010 5 635 10.6% 67 £3,103 £46.18 £4.89 £17.42Q3,2010 5 275 8.4% 23 £751 £32.66 £2.73 £9.16Q2,2010 5 364 6.0% 22 £799 £36.33 £2.20 £8.24Q1,2010 5 270 13.9% 38 £1,105 £29.30 £4.09 £10.35Q4,2009 5 335 2.0% 7 £209 £30.74 £0.62 -£14.21Q3, 2009 5 72 0.0% - £0Q2, 2009 5 320 2.5% 8 £404 £50.52 £1.26 £1.26Q1, 2009 5 353 4.2% 15 £1,204 £81.91 £3.41 £26.56Q4, 2008 5 87 18.5% 16 £666 £41.09 £7.61 £17.31Q3, 2008 5 13 18.5% 2 £51 £21.18 £3.92 £7.35Q2, 2008 5 14 0.0% - £0Q1, 2008 5 66 3.2% 2 £25 £11.85 £0.38 -£12.98FREQUENCY TOTAL 10,775 9.9% 1,064 £46,183 £43.42 £4.29 £15.63Q4,2011 4 1,317 7.1% 93 £2,988 £32.12 £2.27 £7.57Q3,2011 4 1,962 10.4% 204 £7,987 £39.15 £4.07 £13.81Q2,2011 4 2,368 9.7% 230 £10,136 £44.14 £4.28 £15.89Q1,2011 4 7,526 9.5% 717 £31,082 £43.36 £4.13 £15.38Q4,2010 4 571 10.9% 62 £2,621 £42.21 £4.59 £15.58Q3,2010 4 328 9.8% 32 £783 £24.46 £2.39 £6.08Q2,2010 4 252 6.2% 16 £695 £44.54 £2.76 £12.59Q1,2010 4 2,936 3.0% 88 £3,098 £35.05 £1.06 -£2.40Q4,2009 4 192 2.1% 4 £100 £24.95 £0.52 -£16.33Q3, 2009 4 800 2.0% 16 £359 £22.46 £0.45 -£18.77Q2, 2009 4 181 1.2% 2 £37 £17.61 £0.20 -£42.86Q1, 2009 4 897 3.3% 30 £993 £33.44 £1.11 -£1.40Q4, 2008 4 20 6.0% 1 £68 £56.90 £3.39 £18.37Q3, 2008 4 29 0.0% - £0Q2, 2008 4 49 0.0% - £0Q1, 2008 4 317 1.0% 3 £138 £44.65 £0.44 -£39.06FREQUENCY TOTAL 19,744 7.6% 1,498 £61,085 £40.79 £3.09 £12.48Q4,2011 3 1,503 7.8% 117 £4,279 £36.57 £2.85 £10.58Q3,2011 3 1,976 6.9% 137 £4,379 £31.92 £2.22 £7.32Q2,2011 3 5,151 5.7% 291 £11,845 £40.68 £2.30 £9.72Q1,2011 3 5,988 10.5% 628 £24,837 £39.56 £4.15 £14.06Q4,2010 3 516 9.3% 48 £1,798 £37.46 £3.48 £12.28Q3,2010 3 228 10.3% 23 £623 £26.62 £2.73 £7.46Q2,2010 3 3,283 3.8% 126 £7,295 £57.99 £2.22 £13.34Q1,2010 3 2,380 5.0% 120 £4,809 £40.07 £2.02 £8.14Q4,2009 3 1,424 2.2% 32 £953 £29.79 £0.67 -£11.80Q3, 2009 3 335 3.8% 13 £369 £29.26 £1.10 -£1.33Q2, 2009 3 671 2.0% 14 £843 £62.43 £1.26 £1.41Q1, 2009 3 452 6.1% 28 £874 £31.66 £1.93 £6.00Q4, 2008 3 147 3.5% 5 £216 £42.32 £1.46 £3.82Q3, 2008 3 181 1.2% 2 £82 £39.22 £0.46 -£32.05Q2, 2008 3 288 2.2% 6 £164 £26.38 £0.57 -£14.71Q1, 2008 3 567 2.1% 12 £231 £19.21 £0.41 -£18.74
March 2013 Sample Catalogue Total
Order Frequency
Mailing Volume % Conv
Previous BuyersQ4,2011 5+ 2,558 20.3%Q3,2011 5+ 3,691 22.5%Q2,2011 5+ 9,745 14.6%Q1,2011 5+ 18,918 16.2%Q4,2010 5+ 2,376 13.7%Q3,2010 5+ 1,905 5.2%Q2,2010 5+ 1,365 6.7%Q1,2010 5+ 2,500 7.3%Q4,2009 5+ 210 14.9%Q3, 2009 5+ 751 3.6%
March 2013 Sample Catalogue Total
Recency – Analysed by Quarter or MonthFrequency – Analysed by 1,2,3,4,5,5+ purchases over lifetime OR specified period (eg 0-12, 0-24, 0-36 months)
MAILING March 2013 - My Catalogue
Order Frequency
Mailing Volume % Conv Orders Demand
Ave Order Value
Sale per Cat
Net Margin / Order
Previous BuyersQ4,2011 5+ 2,558 20.3% 519 £20,677 £39.88 £8.08 £16.98Q3,2011 5+ 3,691 22.5% 830 £34,149 £41.17 £9.25 £17.91Q2,2011 5+ 9,745 14.6% 1,423 £65,207 £45.83 £6.69 £18.80Q1,2011 5+ 18,918 16.2% 3,063 £136,270 £44.49 £7.20 £18.54Q4,2010 5+ 2,376 13.7% 325 £12,915 £39.76 £5.44 £15.49Q3,2010 5+ 1,905 5.2% 99 £5,011 £50.52 £2.63 £13.74Q2,2010 5+ 1,365 6.7% 92 £3,717 £40.40 £2.72 £11.30Q1,2010 5+ 2,500 7.3% 182 £7,140 £39.23 £2.86 £11.37Q4,2009 5+ 210 14.9% 31 £1,144 £36.65 £5.46 £14.30Q3, 2009 5+ 751 3.6% 27 £811 £29.81 £1.08 -£1.67Q2, 2009 5+ 232 5.2% 12 £298 £24.84 £1.28 £0.82Q1, 2009 5+ 4,912 2.9% 140 £4,711 £33.65 £0.96 -£4.23Q4, 2008 5+ 216 7.8% 17 £548 £32.62 £2.54 £8.59Q3, 2008 5+ 292 2.8% 8 £508 £62.69 £1.74 £9.74Q2, 2008 5+ 20 11.9% 2 £49 £20.43 £2.43 £5.17Q1, 2008 5+ 231 6.6% 15 £548 £35.80 £2.37 £8.83FREQUENCY TOTAL 49,920 13.6% 6,785 £293,703 £43.29 £5.88 £17.23Q4,2011 5 551 13.7% 76 £2,238 £29.61 £4.06 £10.43Q3,2011 5 1,720 10.8% 186 £8,853 £47.60 £5.15 £18.25Q2,2011 5 1,872 6.7% 126 £5,128 £40.70 £2.74 £11.44Q1,2011 5 3,826 12.4% 476 £21,647 £45.48 £5.66 £17.92Q4,2010 5 635 10.6% 67 £3,103 £46.18 £4.89 £17.42Q3,2010 5 275 8.4% 23 £751 £32.66 £2.73 £9.16Q2,2010 5 364 6.0% 22 £799 £36.33 £2.20 £8.24Q1,2010 5 270 13.9% 38 £1,105 £29.30 £4.09 £10.35Q4,2009 5 335 2.0% 7 £209 £30.74 £0.62 -£14.21Q3, 2009 5 72 0.0% - £0
March 2013 Sample Catalogue Total
TRACK - Month on Month RFM Movements
MARKETING DASHBOARD - DUMMY FIGURES
MONTH/SEGMENT TOTAL START
OF MONTH TOTAL END OF
MONTH %% TOTAL DEMAND
TOTAL START OF MONTH
TOTAL END OF MONTH %
% TOTAL DEMAND
JanuaryMulti Active 0-2 77,186 104,123 135% 56% 74,617 63,709 85% 51%
Multi Lapsed 3-4 56,186 42,332 75% 40% 49,827 59,710 120% 35%Multi Inactive 5-6 25,291 25,722 102% 32% 23,779 23,925 101% 27%Single Active 0-2 59,511 57,725 97% 56% 62,897 62,376 99% 54%
Single Lapsed 3-4 56,663 53,970 95% 56% 50,630 48,758 96% 42%Single Inactive 5-6 31,003 35,168 113% 56% 10,856 14,163 130% 45%
Dormant >6 163,785 168,336 103% 30% 203,998 206,692 101% 28%New buyers 62% 58%
TOTAL 469,625 487,376 104% 55% 476,603 479,334 101% 50%
FebruaryMulti Active 0-2 104,123 77,621 75% 45% 63,709 70,123 110% 67%
Multi Lapsed 3-4 42,332 58,786 139% 50% 59,710 55,516 93% 36%Multi Inactive 5-6 25,722 26,006 101% 43% 23,925 23,738 99% 31%Single Active 0-2 57,725 56,734 98% 60% 62,376 60,569 97% 58%
Single Lapsed 3-4 53,970 52,617 97% 63% 48,758 50,559 104% 54%Single Inactive 5-6 35,168 29,304 83% 61% 14,163 15,234 108% 49%
Dormant >6 168,336 229,779 137% 39% 206,692 227,098 110% 25%New buyers 63% 58%
TOTAL 487,376 530,847 109% 52% 479,334 502,837 105% 60%
ONLINEONLINE2013 2012
RFM – As a Matter of Course…… Track Customer Segment Monthly Changes
MARKETING DASHBOARD - DUMMY FIGURES
MONTH/SEGMENT TOTAL START
OF MONTH TOTAL END OF
MONTH % BUYERS DEMAND BUYERS DEMAND% TOTAL DEMAND
TOTAL START OF MONTH
TOTAL END OF MONTH % BUYERS DEMAND BUYERS DEMAND
% TOTAL DEMAND
JanuaryMulti Active 0-2 77,186 104,123 135% 10,261 £613,669 7,676 £341,221 56% 74,617 63,709 85% 10,230 £613,777 6,616 £314,391 51%
Multi Lapsed 3-4 56,186 42,332 75% 1,318 £46,881 510 £18,638 40% 49,827 59,710 120% 1,368 £54,094 446 £18,781 35%Multi Inactive 5-6 25,291 25,722 102% 493 £16,369 173 £5,241 32% 23,779 23,925 101% 522 £19,963 135 £5,387 27%Single Active 0-2 59,511 57,725 97% 2,698 £96,966 1,448 £54,153 56% 62,897 62,376 99% 2,620 £112,478 1,364 £61,229 54%
Single Lapsed 3-4 56,663 53,970 95% 710 £22,724 389 £12,834 56% 50,630 48,758 96% 853 £34,412 364 £14,593 42%Single Inactive 5-6 31,003 35,168 113% 222 £6,898 116 £3,849 56% 10,856 14,163 130% 132 £5,123 59 £2,326 45%
Dormant >6 163,785 168,336 103% 742 £22,161 215 £6,723 30% 203,998 206,692 101% 1,278 £47,101 319 £13,258 28%New buyers 5,711 £171,270 3,138 £106,078 62% 4,649 £182,137 2,621 £105,656 58%
TOTAL 469,625 487,376 104% 22,155 £996,936 13,665 £548,737 55% 476,603 479,334 101% 21,652 £1,069,085 11,923 £535,622 50%
FebruaryMulti Active 0-2 104,123 77,621 75% 9,849 £393,979 4,480 £178,448 45% 63,709 70,123 110% 5,732 £381,079 5,960 £255,938 67%
Multi Lapsed 3-4 42,332 58,786 139% 998 £34,588 463 £17,243 50% 59,710 55,516 93% 857 £33,367 301 £12,072 36%Multi Inactive 5-6 25,722 26,006 101% 388 £12,356 153 £5,309 43% 23,925 23,738 99% 288 £11,371 81 £3,473 31%Single Active 0-2 57,725 56,734 98% 2,193 £77,657 1,242 £46,931 60% 62,376 60,569 97% 1,641 £63,956 923 £37,271 58%
Single Lapsed 3-4 53,970 52,617 97% 537 £15,749 313 £9,859 63% 48,758 50,559 104% 495 £19,036 263 £10,245 54%Single Inactive 5-6 35,168 29,304 83% 217 £5,623 116 £3,407 61% 14,163 15,234 108% 115 £3,943 52 £1,925 49%
Dormant >6 168,336 229,779 137% 534 £14,437 169 £5,649 39% 206,692 227,098 110% 666 £23,672 163 £5,823 25%New buyers 6,559 £175,993 3,316 £110,019 63% 4,438 £155,705 2,451 £90,819 58%
TOTAL 487,376 530,847 109% 21,275 £730,382 10,252 £376,864 52% 479,334 502,837 105% 14,232 £692,127 10,195 £417,566 60%
TOTAL TOTAL ONLINEONLINE2013 2012
Constantly Track New Customer Conversion
RANGE 1 - New Customer LTV Trackler - Conversion
2013Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
NEW BUYERS 53,619 14,935 5,818 5,859 35,518 20,880 3,701 5,964 43,087 SAME QUARTER (excl 1st order) 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 3802 1017 395 162 1997 762 266 285 2460% 2nd Purchasers 7.1% 6.8% 6.8% 2.8% 5.6% 3.6% 7.2% 4.8% 5.7%
1st quarter forllowing acquisition 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 2473 523 385 1670 4055 821 353 1705% 2nd Purchasers 4.6% 3.5% 6.6% 28.5% 11.4% 3.9% 9.5% 28.6%
2nd quarter forllowing acquisition 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 1344 192 945 235 1363 821 1635% 2nd Purchasers 2.5% 1.3% 16.3% 4.0% 3.8% 3.9% 44.2%
3rd quarter forllowing acquisition 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 950 1182 305 259 1985 2011% 2nd Purchasers 1.8% 7.9% 5.2% 4.4% 5.6% 9.6%
4th quarter forllowing acquisition 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 8182 827 478 321 4969% 2nd Purchasers 15.3% 5.5% 8.2% 5.5% 14.0%
5th quarter forllowing acquisition 2012 Q2 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 1406 295 274 514% 2nd Purchasers 2.6% 2.0% 4.7% 8.8%
6th quarter forllowing acquisition 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 507 168 1155% 2nd Purchasers 0.9% 1.1% 19.9%
7th quarter forllowing acquisition 2012 Q4 2013 Q1
2nd Purchasers 338 25% 2nd Purchasers 0.6% 0.2%
TOTAL2nd Purchasers 19,001 4,227 3,937 3,161 14,370 4,415 2,254 1,990 2,460 % 2nd Purchasers 35.4% 28.3% 67.7% 54.0% 40.5% 21.1% 60.9% 33.4% 5.7%
2011 2012
Track New Customer Conversion - 2
RANGE 1 - New Customer LTV Trackler - Conversion
Q1 Q2 Q3 Q4 Q1 Q2
NEW BUYERS 53,619 14,935 5,818 5,859 35,518 20,880 SAME QUARTER (excl 1st order) 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2
2nd Purchasers 3802 1017 395 162 1997 762% 2nd Purchasers 7.1% 6.8% 6.8% 2.8% 5.6% 3.6%
1st quarter following acquisition 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3
2nd Purchasers 2473 523 385 1670 4055 821% 2nd Purchasers 4.6% 3.5% 6.6% 28.5% 11.4% 3.9%
2nd quarter following acquisition 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4
2nd Purchasers 1344 192 945 235 1363 821% 2nd Purchasers 2.5% 1.3% 16.3% 4.0% 3.8% 3.9%
3rd quarter following acquisition 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 950 1182 305 259 1985 2011% 2nd Purchasers 1.8% 7.9% 5.2% 4.4% 5.6% 9.6%
4th quarter following acquisition 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 8182 827 478 321 4969% 2nd Purchasers 15.3% 5.5% 8.2% 5.5% 14.0%
2011 2012
News Customers Each Quarter
(or month, etc)
Same Qtr1 Year Later
New Customer Year on Year Conversion
Track New Customer Conversion - 3
RANGE 1 - New Customer LTV Trackler - Conversion
Q1 Q2 Q3 Q4 Q1 Q2 Q3
NEW BUYERS 53,619 14,935 5,818 5,859 35,518 20,880 3,701 SAME QUARTER (excl 1st order) 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3
2nd Purchasers 3802 1017 395 162 1997 762 266% 2nd Purchasers 7.1% 6.8% 6.8% 2.8% 5.6% 3.6% 7.2%
1st quarter following acquisition 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4
2nd Purchasers 2473 523 385 1670 4055 821 353% 2nd Purchasers 4.6% 3.5% 6.6% 28.5% 11.4% 3.9% 9.5%
2nd quarter following acquisition 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 1344 192 945 235 1363 821 1635% 2nd Purchasers 2.5% 1.3% 16.3% 4.0% 3.8% 3.9% 44.2%
Quarters 3 to 5 NOT SHOWN6th quarter following acquisition 2012 Q3 2012 Q4 2013 Q1
2nd Purchasers 507 168 1155% 2nd Purchasers 0.9% 1.1% 19.9%
7th quarter following acquisition 2012 Q4 2013 Q1
2nd Purchasers 338 25% 2nd Purchasers 0.6% 0.2%
TOTAL2nd Purchasers 19,001 4,227 3,937 3,161 14,370 4,415 2,254 % 2nd Purchasers 35.4% 28.3% 67.7% 54.0% 40.5% 21.1% 60.9%
2011 2012
New Customer Year on Year Conversion
Going Beyond RFM – CHAID(Chi-square Automatic Interaction Detection or
Classification Tree)
CHAID Gains Chart Improving Performance of Marginal Data
Predicted Response / Profit Gain for Each Segment
(476 = + 376% over average)
100 = Effect of Mailing All Cells – ie 100% of AVERAGE (Normal) Response
This group is expected to achieve only 31% response of average for ALL groups.
Segmentation – ROI ObjectivesRecruitment and Reactivation – At What Cost?
• 1 - Lifetime Value is a Direct Function of Recruitment Cost• 2 – IF YOU Allow Marketers to Recruit / Reactivate at a Cost
• - That’s What They’ll Do
• 3 – Think CASH MARGIN - AVOID Complex Accounting Concepts• 4 – Reactivated Customers (Generally) Behave Just Like New
Customers
Segmentation – ROI ObjectivesRecruitment and Reactivation – At What Cost?
Mailing Selections and Segmentation
STEP 1 - File Analysis Leads on to Creating the Mailing PlanSTEP 2 – Sales ForecastsSTEP 3 – Mailing Pack Selection and Source Code AllocationSTEP 4 – Outsourced Marginal Customer Group Optimisation
STEP 1 – Historic Analysis Leads and Mailing Plan
Order Frequency % Conv
Previous BuyersQ4,2011 4 7.1%Q3,2011 4 10.4%Q2,2011 4 9.7%Q1,2011 4 9.5%Q4,2010 4 10.9%Q3,2010 4 9.8%Q2,2010 4 6.2%Q1,2010 4 3.0%Q4,2009 4 2.1%Q3, 2009 4 2.0%Q2, 2009 4 1.2%Q1, 2009 4 3.3%Q4, 2008 4 6.0%Q3, 2008 4 0.0%Q2, 2008 4 0.0%Q1, 2008 4 1.0%FREQUENCY TOTAL 7.6%
LAST YEAR'S EQUIVALENT DATA or AVERAGED DATA
For Each RFM Segment define –- Conversion Rate- Forecast £ Order Value
( Use Previous Year’s Equivalent Data OR Use Averages For Similar Programmes)
Next ….
Overlay NEW Database Counts for Each Segment
STEP 1 – continued
TODAY'S COUNTS
QUANTITY to SELECT FORECAST
Order Frequency % Conv
DATA FROM
Mailing Volume Buyers Orders
Previous BuyersQ4,2011 4 7.1% Q4,2012 2,372 2,372 168 Q3,2011 4 10.4% Q3,2012 13,472 13,472 1,401 Q2,2011 4 9.7% Q2,2012 4,339 4,339 421 Q1,2011 4 9.5% Q1,2012 16,935 16,935 1,613 Q4,2010 4 10.9% Q4,2011 564 564 61 Q3,2010 4 9.8% Q3,2011 1,136 1,136 111 Q2,2010 4 6.2% Q2,2011 2,143 2,143 133 Q1,2010 4 3.0% Q1,2011 9,158 5,000 151 Q4,2009 4 2.1% Q4,2010 2,376 Q3, 2009 4 2.0% Q3,2010 2,007 Q2, 2009 4 1.2% Q2,2010 2,478 Q1, 2009 4 3.3% Q1,2010 4,153 4,153 138 Q4, 2008 4 6.0% Q4,2009 720 720 43 Q3, 2008 4 0.0% Q3, 2009 - Q2, 2008 4 0.0% Q2, 2009 - Q1, 2008 4 1.0% Q1, 2009 2,332 FREQUENCY TOTAL 7.6% 83,341 51,226 4,238
LAST YEAR'S EQUIVALENT DATA or AVERAGED DATA
STEP 2 - Mailing Segment Sales Forecast
TODAY'S COUNTS
QUANTITY to SELECT FORECAST
DATA FROM
Order Frequency % Conv
Mailing Volume Buyers Orders
£ Order Value
Forecast Sales
Q4,2012 4 7.1% 2,372 2,372 168 £39.88 £6,682Q3,2012 4 10.4% 13,472 13,472 1,401 £41.17 £57,667Q2,2012 4 9.7% 4,339 4,339 421 £45.83 £19,284Q1,2012 4 9.5% 16,935 16,935 1,613 £44.49 £71,753Q4,2011 4 10.9% 564 564 61 £39.76 £2,440Q3,2011 4 9.8% 1,136 1,136 111 £50.52 £5,598Q2,2011 4 6.2% 2,143 2,143 133 £40.40 £5,364Q1,2011 4 3.0% 9,158 5,000 151 £39.23 £5,906Q4,2010 4 2.1% 2,376 Q3,2010 4 2.0% 2,007 Q2,2010 4 1.2% 2,478 Q1,2010 4 3.3% 4,153 4,153 138 £33.65 £4,628Q4,2009 4 6.0% 720 720 43 £32.62 £1,398Q3, 2009 4 0.0% - Q2, 2009 4 0.0% - Q1, 2009 4 1.0% 2,332 TOTAL 4 8.3% 61,854 50,834 4,238 £180,719
STEP 3 – Mailing Pack Selection
TODAY'S COUNTS
QUANTITY to SELECT
DATA FROM
Order Frequency % Conv
Mailing Volume Buyers Qty Code Qty Code Qty Code Qty
Code Qty Code
Q4,2012 4 7.1% 2,372 2,372 2,372 V1Q3,2012 4 10.4% 13,472 13,472 7,472 V2 2,000 T12 2,000 T22 2,000 C2Q2,2012 4 9.7% 4,339 4,339 4,339 V3Q1,2012 4 9.5% 16,935 16,935 7,935 V4 3,000 T14 3,000 T24 3,000 C4Q4,2011 4 10.9% 564 564 564 L1Q3,2011 4 9.8% 1,136 1,136 1,136 L2Q2,2011 4 6.2% 2,143 2,143 2,143 L3Q1,2011 4 3.0% 9,158 5,000 5,000 L4Q4,2010 4 2.1% 2,376 Q3,2010 4 2.0% 2,007 Q2,2010 4 1.2% 2,478 Q1,2010 4 3.3% 4,153 4,153 4,153 L5Q4,2009 4 6.0% 720 720 720 L6Q3, 2009 4 0.0% - Q2, 2009 4 0.0% - Q1, 2009 4 1.0% 2,332 TOTAL 4 8.3% 61,854 50,834 22,118 13,716 5,000 5,000 5,000
Check 50,834
Mailing Pack 1VIP CUSTOMERS
Mailing Pack 2LAPSED
CUSTOMERS
Mailing Pack 3TEST FREE P&p
Mailing Pack 4TEST £5 LOYALTY
Mailing Pack 1VIP CUSTOMERS
CONTROL
What makes a control cell ?
STEP 4 – Optimising Marginal Groups…… using data coops
Experience of One Fashion Brand•Targetted 3 separate parts of the “fashion brand’s” database
•24+ month buyers•13+ month enquirers•“low” score customers – 0-24 month, 1 purchase, low AOV
•Aggregate response•24+ month buyers: 3.22% •13+ month enquirers: 0.43%•“low” score optimisation: 4.93%
• Now Provides approximately 120,000 additional customers to mail
Data Supplied by -
CRITIQUES PART 1 – ORDERING A CATALOGUE
RNLI
Very quick and easy....
With branded follow up email
DOGALOGUE• Good position but
a little small• Like the bone• And offer of
braille, print or CD
Stronger links from charity site?
SEASALT
•Hard to find
•But easy once we did
DANBURY MINT
• Request button was hidden (bottom left) • But easy to order• Nice thank you message
Nice on-screen messageBut the email jarred....
ACTION ON HEARING LOSS
Tiny line at the bottom of the page
Confused thank you message
HOTEL CHOCOLATHidden – but easy to order once found...
BAKER ROSS
• Good to ask for relevant information (Who are you ordering for?)
But unfriendly error messages...
FORCE4 CHANDLERY
• Good home page promotion
It autofilled, then told me off for its own mistake....
HOUSE OF BATH
• Or House of Horrors?
• 6 unfriendly steps for a simple catalogue request.
Unfriendly emails too...
LEGO
• Another click-intensive catalogue request process
You want my date of birth?
• But Lego, I want a catalogue, not your emails....
At last
TTS
SAVILLE ROW COMPANY
I have to wait a month!!!!
• In a nutshell the Lifetime Value of a customer is… • The average purchase value, multiplied by the number of times they
buy from • you in a year, multiplied by the number of years they remain your
customer.• Once you know this... • …you’ll know what you can afford to spend in order to get new
customers.
Catalogue Critiques
LAKELAND
Excellent envelope
Selling from the start....
...whichever side it lands on the mat
LAKELAND
• Subheads to help differentiate ie:• Light weight, value, deluxe feature
packed
• Or to flag benefits eg: • Protect your china
LAKELAND
• Separate leaflet – got rather lost in the pack• Refer to it in the letter?• Is it a welcome first time offer? Or
for everyone? • Make threshold line larger and
word as:WHEN YOU SPEND £60 or more•Add web address
SEASALT
• Full of charm – but frightened to sell
• Needs web and phone on the front. These say ‘Here are things for sale’ rather than ‘Here are things to look at
SEASALT
• P2 - Doesn’t say strongly enough that ALL Seasalt coats are waterproof.
• Too much irrelevant detail – eg Different weights some with quilted lining some without
• Guarantee?
• P3 wasted opportunity to sell
• Possibly put price last• Sidebar looks like navigation not
product name• Indoor photograph – so needs to
communicate ‘Waterproof’. • Use copy to explain things that are
not obvious from the photo such as warmth, weight, feel• ‘Details’ list is a long block of text.
Possibly make it more scannable with sub-heads, different fonts or different bullet styles eg: one for style details another for functional details, another for care & fabric content details• Phone and web address?
SEASALT
SEASALT
• Waste of prime selling space in centre pages
• Catalogue too small to need an index
• Might be useful as a comparison chart, but needs more info for each coat
HOTEL CHOCOLAT
• 3 arrived in one day• Plain envelope, no return
address, no letter• Excellent branding • Beautiful product shots –
but no enjoyment shots
HOTEL CHOCOLAT
• Happiness Guarantee – don’t hide it away• Delivery information (how
protected in transit?• Confusing delivery costs• Why 5% and not free delivery?
HOTEL CHOCOLAT
• Chic and beautiful on gorgeous paper
– but hard to read
• To drive traffic to website needs stronger call to action
ACTION ON HEARING LOSS
• Expensive flap
ACTION ON HEARING LOSS
• Icons better below not above product• Bestseller should be a flash not an
icon• Smaller text – larger photos• Try different fonts, sizes, tints• One column of copy if poss
ACTION ON HEARING LOSS
• Consider sub-heads with benefits eg:• Get alerts when your phone rings• Know when your baby is crying
• Or to differentiate similar products• Start copy with active words
rather than ‘The’ or ‘This’.
LEGO
• Strong superman image –but brave to go for an all-illustration cover with no photo of a smiling, engrossed child
• FREE DELIVERY and FREE GIFT – somewhat lost on a busy cover
• Plain graphics like on page 2 would help it stand out
• Ordering info could also be stronger
LEGO
• VIP programme – a huge missed opportunity
• White text on blue impossible to read
LEGO
• Improve signposting of age range
• Put no of pieces at the bottom near price – to add value to the cost.
• Place choking disclaimer in a less prominent position. Do you need the warning triangle?
• Beef up footers – it’s hard to find web address
• Remind of free delivery, with a strong, plain graphic.
DIABETES UK
• Aim for one big picture not lots of little ones
• Font sizes hierarchy: Autumn/Winter not important but web address is.
• Red colour doesn’t reflect the brand
DIABETES UK
• Expensive order form• Folded • Perforated• Gummed• Lots of space
• Write in a suggested donation amount
DIABETES UK
• Lots of wasted space in prime hotspot
• Hard to read welcome letter
ACTION ON HEARING LOSS
• Expensive flap
ACTION ON HEARING LOSS
• Icons better below not above product• Bestseller should be a flash not an
icon• Smaller text – larger photos• Try different fonts, sizes, tints• One column of copy if poss
ACTION ON HEARING LOSS
• Consider sub-heads with benefits eg:• Get alerts when your phone rings• Know when your baby is crying
• Or to differentiate similar products• Start copy with active words
rather than ‘The’ or ‘This’.
LEGO
• Strong superman image –but brave to go for an all-illustration cover with no photo of a smiling, engrossed child
• FREE DELIVERY and FREE GIFT – somewhat lost on a busy cover
• Plain graphics like on page 2 would help it stand out
• Ordering info could also be stronger
LEGO
• VIP programme – a huge missed opportunity
• White text on blue impossible to read
LEGO
• Improve signposting of age range
• Put no of pieces at the bottom near price – to add value to the cost.
• Place choking disclaimer in a less prominent position. Do you need the warning triangle?
• Beef up footers – it’s hard to find web address
• Remind of free delivery, with a strong, plain graphic.
DIABETES UK
• Aim for one big picture not lots of little ones
• Font sizes hierarchy: Autumn/Winter not important but web address is.
• Red colour doesn’t reflect the brand
DIABETES UK
• Expensive order form• Folded • Perforated• Gummed• Lots of space
• Write in a suggested donation amount
DIABETES UK
• Lots of wasted space in prime hotspot
• Hard to read welcome letter
FORCE 4 CHANDLERY
• Keep web and phone together
• Don’t need towns on the front cover
• Strapline unique to the brand
FORCE 4 CHANDLERY
• Product categories at top, order information at bottom
• Repeating product name top and bottom wastes space.
• Dark blue product name floats – doesn’t relate to product.
• Generally more personality
TTS• Ok – So everything was in a
thick polylope – but this is a multi catalogue company.• 156 page Specialist Teachers’
Maths Catalogue• Perfect Bound covered Annual
Reference• Robust UV varnished cover
TTS
• Personalised Letter• Call to action flyer – reverse was
plain … when you have so much to say• £25 off £100 order on flyer • FREE delivery too in letter – but
on flyer
TTS
• Clear Signposting on page 2 and 3
• Perhaps a Guarantee • Classic position for
contents
TTS
• Clear section planning through use of tints• Each section with its own
contents listing• It’s hard to fault this catalogue
DOGALOGUE• Sticker on polylope – no return
address• Size & 40 pages = expensive
• Good to have Free p&p on front cover – but place bottom right • Mention Free gift too• Make gifts time limited?
• Insets good – but add in page numbers
DOGALOGUE
• P2 – summarise order information to make shorter • Add short contents
DOGALOGUE• Best-sellers label• OUR BESTSELLING CARDS
• Bows– photograph them out of the pack
• FREE GIFT (worth £2.99) when you buy 4 packs of cards• Blank parcel graphic wastes a valuable
hotspot
DOGALOGUE
Introduce hero shots?
BAKER ROSS
• Arrived within 1 day• Only one to arrive in less than 7
days• Nice envelope
BAKER ROSS
• Good hardworking catalogue
• Make better use of hot spot bottom right
BAKER ROSS
• Editorial – consider making separate leaflet – or offer as a free gift with purchase
• Also use as web pages or downloads on website
• Toys – consider renaming stocking fillers
BAKER ROSS
• Footers – alternate with web and phone on right hand page
• Buy with confidence – not Buy in confidence
DANBURY MINT
• Arrived in plain C4 envelope (catalogue 165 x 240 format).• Re-writing the letter copuld do
wonders• Inviting cover – good shop
window• Only Martin received a
catalogue • Classic design for this older
collectors’ audience… BUT how does the Brand move on
DANBURY MINT
• Great Use of Panels to Highlight Products• Classic design for this older
collectors’ audience… BUT how does the Brand move on• Excellent order form, with inline
finished envelope
HOUSE OF BATH
• Great cover – fresh, inviting• Large lifestyle photo • Headline contains brand
proposition, benefit and seasonality• Clear offer bottom right• Prominent web & phone
HOUSE OF BATH
Good letter Well presented Smart use of paper
Mrs Mel Henson?
HOUSE OF BATH
Second letter – different signature?
Icons don’t need to be shown – or link to offer eg: 10% OFF – on top of these great offers
Guarantee looks like legal disclaimer, not a trusted benefit
HOUSE OF BATH Good use of paper – lasered address? Die cut window in catalogue?• Phone number & web address
should be larger
? Needs a line for customer to deduct 10%
HOUSE OF BATH• Tint panels easy to navigate• Well designed ‘New’ and ‘Great
Value’ Flashes• Call-outs• Insets• Bullets• HYS (Have you seen?)
HOUSE OF BATH
Great sale pricing layout• Time consuming to
work out• Fiddly to layout• A pain to proof read• But so effective
Questions?