Abstract
The paper proposes a cost-effective method of creating customised marketing contacts, and tests the method with a large field experiment. The firm should sub-segment its customers in different ways using complementary basis variables, and create marketing contacts that are comprised of content determined by the various sub-segments. A field experiment illustrates and evaluates our approach, showing that customisation improves response rates, but not basket sizes. The paper also tests the ‘labelling hypothesis’ for newer customers, which asserts that the firm is better off guessing (labelling) the segment membership of a newer customer (about whom little is known because of limited transaction history) than sending a generic offer. We find that customised offers outperform generic offers for newer customers.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of Database Marketing & Customer Strategy Management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
