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Customer Relationship Management: Getting It Right! by Judith W. Kincaid

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17.1. Creating a Customer Profile

When we select customers to receive the project offer, we are hoping to effectively predict what the customer's response will be to that offer. We define a profile based on characteristics we know about the customer. Frankly, we could segment and target by any characteristic, but not all are useful. Customers' first names, for example, are almost universally available. But a customer's first name is extremely unlikely to predict anything about behavior. Using customers' first names would not produce actionable segments.

Of course, no one would really choose “first name” as one of their segmentation criteria, but many companies (especially those that are product-centered) do something similar. They try to segment ...

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