So you’ve made the decision to try statistical segmentation or modeling against your traditional RFM. To cut through all of the hype, you vow to carefully test the new method against the old. But we’re not talking about an A/B split of one list, or measuring one rental against another. You will be comparing two different approaches to your customers. So what is the best way to make this comparison?
The first point is not to get too fine in your mailings. You won’t find anything out about customers you don’t mail. Use a mailing where you would ordinarily go pretty far down into your RFM schema. You also want to mail pretty far into the model. Even without mailing every cell, you might want to take a few thousand from even the lowest cells just to see what would have happened. Again, you don’t want to bet the farm, but if you are mailing most of your customers anyway, then the negative risk is minimal.
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