Clarifying the Customer Grid
I’ve already received several requests for clarification on the customer grid from my Chief Marketer column. Once you have chosen two criteria for segmenting customers, imagine a grid with each criterion on one axis. Each combination of criterion values represents a segment to be investigated.
So if a hypothetical sporting goods store was set up where Criterion A is Private Label Credit Card Holder = {Y,N} and Criterion B is Activity Type = {Outdoorsman, Weekend Warrior, Family Sports}, there would be 6 boxes in the grid. (Resemblance to a company where I once ran marketing is completely coincidence. Besides, that company no longer exists.) For each box, provide an objective and develop the strategy to accomplish each objective.
For example, the Outdoorsman PLCC Holder has a lot of Open To Spend and lots of big ticket items in his typical wish list. So the objective might be to generate big ticket purchases. The loyalty strategy here might be to focus on long-term accrual, so that he can save up benefits to use on his one big purchase. Or you might assume he has already made at least one big ticket purchase (a possible third criterion for your grid) and your objective is to maintain his spending level. The loyalty strategy here might be to provide point acceleration on key consumables or accessories throughout the outdoor departments or provide increased accrual rates when a spending threshold is met.
