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From the Little Stream Software blog
When you start sending incentives to customer segments, there's one segment you should be cautious with:
Recent customers.
Recent customers are a great segment but for other purpose. Not for incentivized sales.
In RFM recent customers are customers with a high R value (5). In other models they might be ones who bought this week or this month.
Whenever you're using incentives, be careful putting incentives in front of these customers.
- They might be sensitive to being "forced" to buy so soon after their last order.
- They might see an incentive as being a better deal and try to return and re-buy with the incentive.
Instead, use content around your product line or ideas on how to benefit/use your products. Basically, build up their trust and get them primed to buy again soon.
Repeat Customer Insights will automatically segment your entire customer base for you based on the data you already have. Ranging from 5 to 30 to over 125+ different segments using RFM and other models, you can pick how much power you want to harness.
Eric Davis
