Online Music Retailer

Segmentation, Tailoring and Targeting in the Internet Age

A well known online music and DVD retailer needed to understand its customer base better than revealed through transactional data alone to help personalize the online shopping experience. They also needed to improve the performance of their Free Shipping promotional offers, which when analyzed, were determined to be at the very best break even. MDS was retained to use its Predictive Segmentation™ approach to address these problems.

MDS's Predictive Segmentation™ approach was used to drive web site personalization, and a real time targeting system to selectively offer Free Shipping only to a select subset of shoppers whose shopping behaviors (i.e. purchase rate, purchase amount) were very responsive to Free Shipping. As a result, the profitability of the Free Shipping tactic was improved dramatically and overall profitability improved as well.

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