Direct marketer needs to figure out the characteristics of customers and prospects who would be most able, willing, and ready to buy. Bob stone recommends applying the R-F-M formula ( recency, frequency, monetary amount) for rating and selecting customers from a list.
The best customers target who bought most recently, who buy frequently and who spend the most. Points are established for varying R-F-M levels, and each customer is scored; the higher the score, the more attractive the customer.
Direct marketers can use segmentation criteria in targeting prospects. Good prospects can be identifies on the basis of such variables as age, sex, income, education, previous mail-order purchases, and so forth. Occasions also provide a good segmentation departure points.
New mothers will be in the market for baby clothes and baby toys; college freshmen will buy computers and clothing and newly married will be looking for housing, furniture, appliances and bank loans.
Another good segmentation departure points are consumer lifestyles. There are consumers who are marketers have targeted these groups and won their hears and minds.
Companies and industries 24-1 provides the survey findings of Japanese consumer who tended to purchases through direct mail.
Once the target market is defined, the direct marketer needs to obtain names of good prospects in the target market.
Here is where list acquisition and management skills come into play. The direct marketer’s best list is typically the house list of past customers who have bought the company’s products.
The direct marketers can buy additional lists from list brokers. Manes on these lists are priced at so much a name. But external lists have problems, including name duplication, incomplete data, obsolete addresses, and so on.
The better lists include overlays of demographic and psycho graphic information, in addition to simple addresses. The main point is that the direct marketer needs to test in advance to know their worth.
The best customers target who bought most recently, who buy frequently and who spend the most. Points are established for varying R-F-M levels, and each customer is scored; the higher the score, the more attractive the customer.
Direct marketers can use segmentation criteria in targeting prospects. Good prospects can be identifies on the basis of such variables as age, sex, income, education, previous mail-order purchases, and so forth. Occasions also provide a good segmentation departure points.
New mothers will be in the market for baby clothes and baby toys; college freshmen will buy computers and clothing and newly married will be looking for housing, furniture, appliances and bank loans.
Another good segmentation departure points are consumer lifestyles. There are consumers who are marketers have targeted these groups and won their hears and minds.
Companies and industries 24-1 provides the survey findings of Japanese consumer who tended to purchases through direct mail.
Once the target market is defined, the direct marketer needs to obtain names of good prospects in the target market.
Here is where list acquisition and management skills come into play. The direct marketer’s best list is typically the house list of past customers who have bought the company’s products.
The direct marketers can buy additional lists from list brokers. Manes on these lists are priced at so much a name. But external lists have problems, including name duplication, incomplete data, obsolete addresses, and so on.
The better lists include overlays of demographic and psycho graphic information, in addition to simple addresses. The main point is that the direct marketer needs to test in advance to know their worth.