1. KEEPall channel and primary source data that lets you segment deeper than recency, frequency, monetary. RFM segmentation is no longer enough when mailing your housefile.
2. CAPTUREthe original source for Web buyers whenever possible because you’ll want to segment by it. Price-comparison, shopping-engine buyers may respond differently than affiliate buyers, paid and organic natural search buyers, or Web buyers driven by your catalog.
3. DIVIDEyour buyers by purchase channel. Segment traditional telemarketing buyers, Web buyers who purchased after receiving a catalog and Web buyers who’ve never received a catalog. Tag each order by purchase channel so you can identify multichannel buyers.
4. FLAGWeb-driven buyers in your database. Define those Web buyers not identified as catalog Web buyers in your matchback as pure Web buyers.
5. CAPTUREall list hygiene for address changes and corrections back to your database so you’re always mailing the freshest, most complete address.
6. USEadvanced list hygiene services like AEC, AEC II and Cognitive Data’s Intellidress to flag the 15 percent of U.S. households that move every year.
7.SEGMENTyour housefile into many small segments. You’ll see segments to suppress and segments to mail more frequently.
8. MAINTAINall purchase data at the order level so you can segment and model customers based on what they’ve purchased.
9. SEGMENT AND MEASUREthe value of customers by merchandise type and look at the response rates and lifetime value of different types of customers. Catalogers always combine different types of merchandise in a single catalog.
10. KEEPyour promotional history of every single contact so you know how much you’ve spent and how much response you’ve gotten from individual customers.
11. SEGMENTone time Web “triers” to see if they’re profitable.
12. TESTa co-op database’s overlay of your house database to reactivate or suppress marginal buyers. Keep each customer’s score within your database.