Customer dynamics have been permanently altered by the Internet. Companies are discovering that a high percentage of their new customers are hit-&-runners who buy and leave. Creating a marketing strategy based on individual customer types and buying preferences increases lifetime value, lifespan, and profitability.

1. Marketing to the Customer Life Cycle Presented by: Debra Ellis @wilsonellis

2. Customer Life Cycle Newbies Hit & Run Discount Active Rising Stars Falling Stars Platinum

3. Customer Dynamics $998.72 $1,041.75 $ 902.30 $ 848.32 Lifetime Value (Gross) 3.4 3.5 3.3 3.2 Avg Ord/Act Customer $205.73 $208.35 $ 180.46 $ 169.66 Avg $/Active Customer 94.7% 99.6% 111.8% 109.9% Attrition Rate 70.7% 57.6% 51.9% 48.0% Acquisition Rate 62,971 56,824 52,485 47,083 Last Purchase 47,313 49,960 50,174 44,874 First Purchase 26,093 41,751 48,651 50,926 Active 2009 2008 2007 2006 Customers:

4. First Purchase 444.59 8.4 $214.45 12.5 $98.95 76.2 Overall $365.73 2.5 $234.67 8.4 $96.72 86.5 2009 $404.67 6.7 $220.57 12.7 $101.54 77.8 2008 $456.66 10.3 $208.01 14.1 $100.00 72.6 2007 $466.46 12.2 $207.09 13.7 $97.10 71.1 2006 Avg Sales % Avg Sales % Avg Sales % Year Buyers Twotimers Onetimers

5. Last Purchase $722.77 22.5 $211.13 14.0 $98.89 60.6 Overall $953.98 32.6 $218.68 13.6 $96.73 50.7 2009 $617.29 22.9 $214.14 14.7 $101.58 59.3 2008 $568.50 17.8 $209.21 14.6 $99.84 64.9 2007 $534.95 15.2 $200.17 12.9 $97.00 69.1 2006 Avg Sales % Avg Sales % Avg Sales % Year Buyers Twotimers Onetimers

6. Profile Customers Newbies Hit & Run Discount Active

7. Marketing Cycle Buy Return & Exchange Shop

8. Customer Cycle Shop Consumption Buy Service

9. Corporate Cycle Financial Marketing Operations Merchandising

11. Profile Customers Newbies Hit & Run Discount Active Rising Stars Falling Stars Platinum

12. Customer Life Cycle Newbies Hit & Run Discount Active Rising Stars Falling Stars Platinum

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