Selecting the right variables and method of segmentation based on campaign objectives is key to successfully personalising the customer experience. This chapter looks at three different approaches to this. It covers:

  • Customer lifecycle: Customers will respond to different messaging approaches depending on their stage in the customer journey. What communication and tactical goals apply at each stage?
  • Customer value: Some customer segments will be more valuable to a business than others. How can brands use propensity modelling to chart current versus future customer value?
  • RFM analysis: Recency, frequency and monetary (RFM) analysis uses a statistical method for categorising customers. How does it work?