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Client: A national food retail chain with 53 retail locations and approximately $50M in sales. |
Challenges: The company needed to increase the efficiency of their prospecting efforts. They had been using list rentals for direct mail that generated a typical response rate of 1% or less. Production and mailing costs were rising fast and campaign response rates were dropping. The more they mailed, the lower the response rate.
Solution: Management Analytics Group analyzed the company's customer data to better understand which kinds of prospects actually became their customers. We also developed purchasing profiles on about 6,000 profitable new customers they had acquired through their retail stores. Management Analytics Group then enhanced these profiles with purchased overlay data to determine which demographic and lifestyle characteristics were associated with profitability. Our recommendations included reallocating the funds spent on unproductive list rentals towards using the data they already had in-house for acquiring new customers for their stores.
Results: Management Analytics Group's recommendations led to new customer acquisition campaign response rates jumping as high as 20% compared to the response rates of 1% or so seen with the rented lists!
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