Glossary
A
Potential customers that were included in brand promotions but are yet to make any positive transactions with the brand are categorized into the Acquire segment. If a customer makes at least one positive transaction, that customer will be moved to Activate segment. If the customer fails to make any positive transactions for two repurchase cycles applicable for the given period, Pulse will move the customer to the At-Risk segment.
Customers that have made at least one positive transaction within the given customer-brand relationship assessment period, but are yet to reach the SafeSpot applicable for that period are put in the Activate segment. Customers in Activate segment that reach the SafeSpot will be moved to Engage segment and customers that fail to engage for two or more Customer Cycles will be moved to At-Risk segment.
Active customers are customers who maintained an active relationship with the brand by making at least a single positive transaction within the assessment period. Customers that fall into the Activate, Engage, Grow, and Decline SmartJourney® segments are considered as active customers. Inactive customers are customers those grouped into the At Risk and Dormant segments.
Customers that idle for over two Customer Cycles within the customer-brand relationship assessment period since the last purchase are put in the At-Risk segment. Customers in the At-Risk segment are considered inactive customers and will be moved to the Dormant segment if they continue to show no interest on the brand. If an At-Risk customer makes any positive transaction, Pulse will move the customer to Activate segment or to the Engage segment, if the customer has reached the SafeSpot.
C
Customers that show no interest in making any positive transactions and have moved away from the brand are grouped into the Churn segment. Customers in Churn segment need to be reengaged in order to gain their loyalty once more.
The Customer Cycle (a.k.a. Repeat Purchase Cycle) is the number of days between two positive transactions done by a customer in the customer base. The median and average duration for a repeat transaction applicable for a given period is calculated by analyzing the transaction data of all customers of the brand. The Customer Cycle duration is used in Pulse for assessing customers' level of engagement with the brand for the given period and group them into the SmartJourney® segments accordingly.
The Customer Lifetime Value (CLV) is the total revenue generated from a single customer during the relationship with the brand. The lifetime value of each customer will vary based on the level of engagement and spending.
D
Customers that show loyalty to the brand (days since last purchase is less than two CCs) but show a decreasing purchase rate or spend less per transaction (i.e., be in the decreasing slope of the weighted moving average curve) are grouped into the Decline segment. If the trend continues, the customer will be moved to the Engage segment. If the customer goes idle for more than two CCs, the customer will be moved to the At-Risk segment.
Customers that show no interest in spending since last positive transaction and are idle for the threshold period for dormancy will be put in the Dormant segment. Customers in the Dormant segment are considered as inactive customers and will be moved to the Churn segment after being idle for the threshold period for going to Churn. If a Dormant customer makes any positive transaction, Pulse will move the customer to the Activate segment.
E
Customers that reach the SafeSpot and keep a stable relationship with the brand but do not show a growing spend pattern (be in the deaccelerated slope in the weighted moving average curve) are put in the Engage segment. If the spending goes up (i.e., slope direction goes up), the customer will be moved to Grow segment or if the spending reduces, the customer will be moved to the Decline segment. If the customer goes idle for over two Customer Cycles, the customer is put in the At-Risk segment.
G
Customers that have reached the SafeSpot and continue to have active (i.e., days since the last purchase is less than two CCs) and positive relationship (i.e. be in the increasing slope of the weighted moving average curve) with the brand are put in the Grow segment. Customers in Grow segment will be moved to Engage segment if they show signs of disinterest (i.e., the slope is going down) or will be moved to the At-Risk segment, if they go idle for over two CCs. |
H
HealthScore is a KPI for assessing brand-customer relationship. Pulse first calculates the probability of each customer (except those in Churn) moving to another segment over a 12-month period, based on their recent activities. The probability score is positive/negative based on the level of engagement. The individual scores are aggregated to find the brand’s HealthScore which should be 7.5 or above, to indicate that most customers are engaged, and their behavior is predictable.
I
Inactive customers are customers that fail to engage with the brand for more than two Customer Cycles durations applicable to the assessment period and get grouped into the At-Risk and Dormant SmartJourney® segments. Active customers are customers who maintained an active relationship with the brand by making at least a single positive transaction within the assessment period. Customers in the Activate, Engage, Grow, and Decline SmartJourney® segments are considered as active customers.
S
SafeSpot is the number of positive transactions that need to be completed within a given duration by a customer in the Activate segment for Pulse to consider that particular customer is fully onboarded. Customers that reach the SafeSpot within the duration will be moved to the Engage segment. Customers that do not reach the SafeSpot but continue to actively engage will remain in the Activate segment while those who do not show interest in the brand will be moved to At-Risk segment.
Kognitiv SmartJourney® is a segmentation methodology used for categorizing the customers into different segments based on their brand relationship. The SmartJourney® segments are Acquire, Activate, Engage, Grow, Decline, At Risk, Dormant and Churn. Kotnitiv's Kognition® AI/ML engine analyzes the customer purchase data within a given period and categorizes the customers into these eight segments depending on their level of engagement.
The Spend per Customer is the amount of money and/or points each active customer is spending within the customer-brand relationship assessment period.
T
Total Revenue is the total revenue generated from all the transactions done within the customer-brand relationship assessment period.
Total Transactions is the total count of positive transactions (purchases) made by customers using money or points or both within the customer-brand relationship assessment period.
The Transaction Value is the revenue generated by a single transaction within the given assessment period. By analyzing all the transaction records for the given period, Pulse calculates the median and average Transaction Value for that period.
The Transactions per Customer is the number of positive transactions done by a customer within the customer-brand relationship assessment period. By analyzing the transaction data, Pulse is able to calculate the average and median number of purchases a customer makes within a given duration.