Understanding customer behavior is key to creating marketing campaigns that generate high response and revenue.

One of the best ways to understand customer behavior is to study customer migration patterns—to learn when and why a customer ends up in a segment different from the one he or she had been in.

The starting point for those studies is your customer-segmentation model. After you decide which approach to use to measure migration, the process is a virtuous circle of analyze, segment, campaign, and analyze again.

The next task, requiring strong analysis skills, is to tie the observed migrations to company activities, such as a marketing stream, and to customer purchase behavior.

The final task is to apply the results of that analysis to your marketing campaigns to generate revenue and boost customer retention.

Why Study Migration Patterns?

Customers are not statues, cast in stone and plunked down in a park as a perch for birds. Some buy a lot, and some defect to the competition.

Though you likely have some very steady buyers, most customers are in motion. That is not a new notion. We wrote about it four years ago in the Target Marketing magazine article "The Five Laws of Velocity Marketing." Today marketers refer to that behavior as customer migration.

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Dr. Mark Klein is CEO and founder of Loyalty Builders LLC (loyaltybuilders.com) and three other companies. He blogs frequently on mathematical marketing and recently published his first novel. You can reach him at 603-610-8800.