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A dynamic segmentation approach for targeting and customizing direct marketing campaigns

Reutterer, T, Mild, A, Natter, M and Taudes, A (2006) A dynamic segmentation approach for targeting and customizing direct marketing campaigns Journal of Interactive Marketing, 20 (3-4). pp. 43-57.

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An important aspect of customer relationship management is the targeting of customer segments with tailored promotional activities. While most contributions focus on the selection of promising customers for targeting, only few authors address the question of which specific differential offers to direct to the selected target groups. We focus on both issues and propose a flexible, two-stage approach for dynamically deriving behaviorally persistent segments and subsequent target marketing selection using retail-purchase histories from loyalty-program members. The underlying concept of behavioral persistence entails an in-depth analysis of complementary cross-category purchase interdependencies at a segment level. The effectiveness and efficiency of the proposed procedure are demonstrated in a controlled field experiment involving the targeting of several thousands of customers enrolled in the loyalty program of a "do-it-yourself" retailer. Our empirical findings provide evidence of significant positive impacts on both profitability and sales for segment-specific tailored direct marketing campaigns. © 2006 Wiley Periodicals, Inc. and Direct Marketing Educational Foundation, Inc.

Item Type: Article
Divisions : Surrey research (other units)
Authors :
Mild, A
Natter, M
Taudes, A
Date : 1 June 2006
DOI : 10.1002/dir.20066
Depositing User : Symplectic Elements
Date Deposited : 16 May 2017 15:15
Last Modified : 24 Jan 2020 14:12

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