Utilize your database to create targeted campaigns

Data mining leads to 27% increase in conversion

THE CLIENT CHALLENGE

Our client was seeking a strategic way to reengage inactive customers within their existing database during the holiday 2017 buying season. These inactive customers dated from 2009 to June 2016, so there was a wide range of familiarity within this group about the client’s existing product line-up. Some customers had not made a purchase since our client’s entry level product was eliminated in 2014. In stepped ResponsePoint to revamp the entire inactive marketing automation strategy marketing program.

THE GOALS

• Increase conversion rate
• Increase average order size
• Increase return-on-investment

PAIN POINTS

• Engagement—experiencing a 34% loss in active customers over the past four years
• Declining Results—the number of customers converting during the Holiday campaign from inactive to active was declining each year
• Perception—major competitor offered a more limited product solution with more restrictions, but is gaining market share and brand loyalty

THE RESPONSEPOINT SOLUTION

• Data Mining—mined existing database in order to segment on prior purchase history, lifetime average order size and permission status
• Tactic Evaluation—reviewed historical data to evaluate any distinguishing factors in prior tactics used during successful campaigns that could be utilized
• Offer Customization—strategized and implemented a lifetime average order size step-up that each individual customer had to fulfill in order to receive an incentive with their purchase
• Tactic & Message—implemented tactics and messaging in accordance with the database data to create a customized campaign based on purchase product history, tactic history, and lifetime purchase amount
• Design Overhaul—strategized and executed a new holiday design that varied amongst four different direct mail pieces and two different email messages. The design was different but synergistic to create a series aspect

THE RESULTS

• Our client experienced their highest revenue number in the past seven years.
  • Sales conversion for inactive customers increased from 1.66% to 2.11%
  • Revenue increased by $222K with a $15 increase in average order size
  • Return on investment increased from 132% to 194%
• Switching customers from receiving three email touches to a first touch mailer and two follow-up emails increased the conversion rate from 1.33% to 2.85%.
• Switching customers from receiving two post card touches to a series of three product specific direct mail pieces increased the conversion rate from 1.82% to 2.02%.
• Our client saw a 6.39 percentage increase in one of their products and a 4.65 percentage increase in another, which meant that by showcasing the client’s variety of product offerings (instead of one) more customers became engaged, as they found a product that met their needs.
• For one test segment, the product purchase history was the same, but one group received the series of three direct pieces that went into great detail about each of the available products and the other group received the more integrated product communications. The group receiving the detailed direct mail leads outperformed the integrated group with a 4.69% vs 2.85% response rate.

BIGGEST TAKEAWAY

Utilizing your database to create targeted campaigns based on products, purchase history, buying time frame, etc. will lead to better results if you know your customer, you will know how to speak to them. By successfully mining this client’s data and implementing appropriate direct mail campaign services strategies ResponsePoint showed this client how to reengage with their customers.