Method and apparatus for internet customer retention
A method of dynamically optimizing customer retention for a web marketing site is provided. That method includes specifying a permissible defunct threshold, specifying a range of offers to be included in a set of promotions, determining a probability that a customer will become defunct in a predetermined period of time since the last interaction of that customer with the web site, and providing a promotion to a customer if the probability that the customer will become defunct in the predetermined period of time since the last interaction of that customer with the web site is greater than a predetermined threshold.
1. A computer implemented method of dynamically optimizing customer retention for a web marketing site, comprising:
operating a computer processor and memory for:
specifying a permissible defunct threshold representing a probability that a particular customer is not expected to return to the web marketing site, wherein the permissible defunct threshold is set according to an inter-login time of a customer at the web marketing site; and
responsive to the particular customer not interacting with the web marketing site for a period of time, determining a probability that the particular customer will become defunct based on historical data stored in a database indicating a percentage of customers that have returned to the web marketing site after having no interaction with the web marketing site for the period of time; and
determining that the particular customer has exceeded the defunct threshold;
sampling defunct customers to determine a promotion to offer the particular customer; and
propagating the promotion to the particular customer.
2. The method according to claim 1 , wherein the promotion is automatically propagated to the web marketing site.
3. The method according to claim 1 , wherein the promotion comprises a discount on a product that maximizes customer retention.
4. The method according to claim 1 , wherein the promotion comprises a discount on a product that maximizes profit.
5. The method according to claim 1 , wherein the sampling further comprises:
segmenting the defunct customers into socioeconomic groups; and
only sampling customers belonging to certain socioeconomic groups.
6. The method according to claim 1 , wherein the promotion comprises a discount on a product that maximizes customer retention.
7. The method according to claim 6 , wherein:
a permissible defunct threshold for customers that have previously spent more than $1000 is set lower than a permissible defunct threshold for customers that previously spent more than $50; and
the promotion is propagated to the web marketing site for offering to subsequent customers each time the promotion changes by a particular amount, as discovered via sampling, the particular amount comprising $0.25.
8. A computer implemented method of dynamically optimizing customer retention for a web marketing site, comprising:
operating a computer processor and memory for:
specifying a permissible defunct threshold representing a probability that a particular customer is not expected to return to the web marketing site, wherein the permissible defunct threshold is set lower for customers predetermined to be important customers; and
responsive to the particular customer not interacting with the web marketing site for a period of time, determining a probability that the particular customer will become defunct based on historical data stored in a database indicating a percentage of customers that have returned to the web marketing site after having no interaction with the web marketing site for the period of time; and
determining that the particular customer has exceeded the defunct threshold;
sampling defunct customers to determine a promotion to offer the particular customer; and
propagating the promotion to the particular customer.
9. The method according to claim 8 , wherein the promotion is automatically propagated to the web marketing site.
10. The method according to claim 8 , wherein the promotion comprises a discount on a product that maximizes customer retention.
11. The method according to claim 8 , wherein the promotion comprises a discount on a product that maximizes profit.
12. The method according to claim 8 , wherein the sampling further comprises:
segmenting the defunct customers into socioeconomic groups; and
only sampling customers belonging to certain socioeconomic groups.
13. The method according to claim 10 , wherein:
a permissible defunct threshold for customers that have previously spent more than $1000 is set lower than a permissible defunct threshold for customers that previously spent more than $50; and
the promotion is propagated to the web marketing site for offering to subsequent customers each time the promotion changes by a particular amount, as discovered via sampling, the particular amount comprising $0.25.
14. A computer implemented method of dynamically optimizing customer retention for a web marketing site, comprising:
operating a computer processor and memory for:
specifying a permissible defunct threshold representing a probability that a particular customer is not expected to return to the web marketing site; and
responsive to the particular customer not interacting with the web marketing site for a period of time, determining a probability that the particular customer will become defunct based on historical data stored in a database indicating a percentage of customers that have returned to the web marketing site after having no interaction with the web marketing site for the period of time; and
determining that the particular customer has exceeded the defunct threshold;
sampling defunct customers to determine a promotion to offer the particular customer, wherein the sampling further comprises: segmenting the defunct customers into socioeconomic groups; and only sampling customers belonging to certain socioeconomic groups; and
propagating the promotion to the particular customer.
15. The method according to claim 14 , wherein the promotion is automatically propagated to the web marketing site.
16. The method according to claim 14 , wherein the permissible defunct threshold is set according to an inter-login time of a customer at the web marketing site.
17. The method according to claim 14 , wherein the promotion comprises a discount on a product that maximizes customer retention.
18. The method according to claim 14 , wherein the promotion comprises a discount on a product that maximizes profit.
19. The method according to claim 14 , wherein the permissible defunct threshold is set lower for customers predetermined to be important customers.
20. The method according to claim 14 , wherein the promotion comprises a discount on a product that maximizes customer retention.
21. The method according to claim 20 , wherein:
a permissible defunct threshold for customers that have previously spent more than $1000 is set lower than a permissible defunct threshold for customers that previously spent more than $50; and
the promotion is propagated to the web marketing site for offering to subsequent customers each time the promotion changes by a particular amount, as discovered via sampling, the particular amount comprising $0.25.