The following table of contents supports additional documentation relating specifically to Merlin Segments.
|Merlin Segments | Segment Analysis||Description of Merlin Segments, Data Definitions, and defining the RFMT model.|
|Merlin Segments | Segment Types, Methodology, Definitions, and Strategies||Description of the different types of segmenting that you'll find while using Merlin.|
|Merlin Segments | Offer Recommendations & Offer Ranking Rationale||A dive into the Merlin Recommender service process with supporting documentation, including offer ranking|
Merlin Segments consist of eight automatically generated customer segments covering members with at least one visit in the last two years. These segments are built based on the foundation of Merlin Customer Prediction, and the distinct behavior patterns of members in each segment help determine the goals and objectives for Merlin's Offer Recommendations. For more on each segment type, see: Merlin Segments | Segment Types, Methodology, Definitions, and Strategies
How do Merlin Segments work?
Each week, the Merlin Customer Prediction service processes and examines hundreds of data points for every loyalty member with at least one visit in the last two years to predict their future monetary value and lapsing rate in the next 30, 60, and 90 days. Using the individual Predicted 90 days Monetary Value, visiting Recency, Frequency, and the membership Tenure, the Merlin Segmentation service then assigns Recency, Frequency and Monetary (RFM) percentile values to each member. Finally, the Merlin Segmentation Service divides the member into eight segments based on the individual RFMA percentile values.
Once you know which Merlin segment you would like to target, you can easily select a highly compelling offer recommended by the Merlin Offer Recommendation that members best respond to. Instead of guessing what types of marketing members will respond to in the future, you can make informed decisions based on predicted behavior over the next 90 days.
Based on a particular segment's customer makeup, Customer Reachability shows the communication channels (Email, SMS, Push notifications) by which your customers may be contacted (based on the communication permissions each customer has accepted/declined). Use these values to determine the best form of communication to choose for campaigns created for this segment type.