In this white paper called "Discount Laddering", WhatCounts' Justin Foster explains how to build a business case to develop or enhance an email marketing segmentation strategy based on recency of purchase.
Measuring how purchase recency across the subscriber base affects conversion rate and total revenue produced can provide important clues marketers can use to build behavior-based email marketing programs.
As the recency of a subscriber’s last purchase becomes more distant (i.e. further in the past) it can become more and more “expensive” to sell to the customer. Discount laddering is one approach marketers can use to incite repeat purchases from customers that would otherwise not convert.