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RFM has been the standard methodology of customer segmentation for decades but if this is the only segmentation, profit is not optimized.
Our consulting and analytics team optimizes profit by utilizing proven techniques to unlock profit potential based on different stages of the customer life cycle. Most direct marketers treat new customers the same as “best” customers, sending the same communication cadence warranted the highest value customers to “unproven” customers in the hope they become good customers. Many treat all their frequent buyers the same, instead of identifying the products they are most likely to buy and focusing offers accordingly. Others treat all aged customers the same, dropping communication to all customers that haven’t bought in the last X years as if the reasons they haven’t bought are all the same. It is necessary to differentiate between which might still have interest and which are no longer in business.
Assessing the interrelationships of the attributes in the customer file and enhancing it with external data can provide a wealth of information that transform customer circulation into a multi-faceted segmentation strategy, optimizing revenue and profit.
“MeritDirect is Lenovo’s strategic BtoB data partner. We leverage their OmniENGINE solution to drive demand generation, ABM nurture, and intelligent database growth. MeritDirect’s unparalleled quality, reach, intelligence, and performance make it an easy decision to justify on paper. Best in class service and collaboration is like a pound of bacon all to yourself.”