Here’s a customer who just purchased for the fifth time … via models, the customer is expected to become less responsive with each month that passes.
In my projects, I leverage “Action Segment Levels” to dictate when Action Streams are implemented. Among twelve-month buyers?
- 75% Annual Rebuy Rate = Elite Customers.
- 60% Annual Rebuy Rate = Loyal Customers.
- 40% Annual Rebuy Rate = Quality Customers.
- 20% Annual Rebuy Rate = Average Customers.
- 1%+ Annual Rebuy Rate = Struggling Customers.
Among lapsed buyers?
- 15% = Lapsed Spend Money
- 5% = Lapsed Experiment
Looking at the graph above, there are several places where Action Streams make sense.
- Month 4 when the customer is about to drop out of Loyal status.
- Month 8 when the customer is about to drop out of Quality status.
- Month 11 when the customer becomes responsive due to an Anniversary event.
- Month 17 when the customer is about to drop out of Lapsed Spend Money status.
- Month 23 when the customer becomes responsive due to an Anniversary event.
- Month 33 when the customer is about to drop out of Lapsed Experiment status.
