Data analysis leads to 15% sales increase.
By managing Kane’s database, we created insights that saved them money and illuminated the way to achieving their business goals. It’s a process of combining transactional data, demographics, social graph and data collected using the latest digital tools to see the larger picture. Then, using our predictive model, we identify their best prospects.
Once we know which customers are most likely to buy, we could tell them which ones should be targeted with direct mail and which customers should be eliminated from the list. That way they were able to increase sales without increasing, and even decreasing, their budget. This became the foundation we continue to use in our successful database management based marketing initiatives for some of the nation’s leading retailers.
Kane’s was previously mailing half of the 800,000 customers in their database eight times a year. By segmenting their data, we were able to target only those customers most likely to respond, resulting in a decrease of 160,000 pieces per mailing.
Before creating a model of their customer and segmenting their mailing list, we took 10 years of customer records, over 1.5 million, de-duped them and ran the list through the National Change of Address database. This narrowed the list down to 657,000 mailable customers. Once we segmented the list, we identified 240,000 customers who would be the most responsive to mailings. With the new list of targeted customers, we estimated Kane’s savings would reach $20,000 per mailing.
By eliminating less responsive customers from their mailings, we discovered 30% of Kane’s direct mail budget was freed-up to be allocated to new direct mail initiatives, additional broadcast events, circulars, etc. Over the course of eight mailings throughout the year, sales for Kane’s Furniture increased by 15% due to the reduced mailing costs that resulted in savings that were reinvested in more efficient mailings.