Combining Customer Metrics

What is it about?

The annual web sales loss due to inadequate Web site design is amounted to several billion dollars. Consequently, investigating Web site visitors' needs and targeting the most attractive segments are two fundamental tasks for relationship marketing. This paper integrates the established concepts of benefit segmentation and customer valuation. Based on data of 2,161 website users we conduct a hierarchical cluster analysis and combine the results with equity segmentation. As a result we develop the "user benefit-user equity-framework". Our results show, that there is no dominance of one benefit segment regarding user equity. However, segments with differentiated benefit requirements exhibit significantly higher customer equity than unfocused segments. Thus, a selective strategy is promising.

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