Segmentation Model - the concept

Purple Seven's customer segmentation model is based on behaviour. 

Analysing millions of customer records across hundreds of arts organisations, we have distilled a model that is DYNAMIC, FACTUAL and based on the CUSTOMER.

Using RECENCY and FREQUENCY as key predictors of customer behaviour, this model helps you manage customers through their engagement journey with your organisation. 

SEGMENT NAME  DESCRIPTION
Not a Customer Has not yet visited your organisation, your 'untapped potential'
First Timer Has made 1 visit, which was in the last 18 months
Convertee Has made 2 visits, 1 of which has been in the last 18 months
Active Has made 3+ visits in the last 3 years
VIP This group is specific to your organisation; perhaps members or friends.
Stale Has not attended for 18 months. Each organisation has its own 'stale' period - which varies. We have seen lapse periods of anything from 12 - 36 months but typically 18.
Lapse Has not attended for longer than the stale period and is highly unlikely to re-attend. 

As a customer moves through the segmentation model, the likelihood of them making future bookings hugely increases. 

Segment Conversion Rate (without intervention)
FIRST TIMER 1 in 10 will return
CONVERTEE 3 in 10 will return
ACTIVE  6 in 10 will return
VIP 8 in 10 will return

By proactively managing the customer's journey through the model, marketing teams can increase the chances of customers coming back which will move them along the model, further increasing their chances of coming back. 

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