Question
Imagine that you have identified 3 target segments: Segment Blue (100 members), Segment Yellow (200 members), and Segment Red (300 members). You have sent emails
Imagine that you have identified 3 target segments: Segment Blue (100 members), Segment Yellow (200 members), and Segment Red (300 members). You have sent emails to each of these groups at a cost per email of 10 cents (for Segment Blue), 20 cents (for Segment Yellow) and 30 cents (for Segment Red). Imagine that you attain a 5% yield from each group with an average resulting margin per order of $4. Which segment(s) can you profitably pursue? In other words, which segment(s) achieve a positive segment value for your email promotional campaign?
1. Segment Blue
2. Segment Yellow
3. Segment Red
4. Segments blue & yellow
5. none
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