Friday, June 19, 2009

3 outcome metrics to track effectiveness of segment specific actions

How does one track effectiveness of a segmentation strategy . The best way to do this is to quantify metrics before and after a customer segmentation strategy was put in place
Here are 3 outcome metrics to assess the effectiveness of the segmentation framework
1) % increase in revenue from customers who have not shopped in last 6 months
2) % increase in breadth of categories shopped
3) Measures which track intensity of shopping behavior – average basket size change and changes in purchase frequency

No comments: