New Campaign Development
Occasionally you get the chance to just play with a dataset and see what opportunities are there. In this case, the only objective was to find a group of customers in order to send a direct mail campaign.
The primary analysis method was to use descriptive statistics across a number of metrics to try and find something that stood out. One metric that merited further investigation was the number of outlets used by a customer. In profiling this metric a segment of customers stood out, those that used multiple outlets but fell within the definition of being a low spender.
Further profiling showed that it contained a high proportion of core type customers that did not spend enough to be considered as using the brand as their main supplier. The segment was also validated against external data sources to confirm these were core type customers and fit with the business strategy.
Research with staff in outlets was carried out to bolster the analysis and bring some real world knowledge that helped answer questions that the data couldn’t necessarily answer.
Analysis of the segment profile and sales behaviour shaped the campaign brief, guiding the creative and providing clarity over the type of messaging and the call to action.
Key information from the analysis directed the messaging by highlighting:
These low spenders were a core customer type, proving low spenders and cash customers could form part of the target market (contrary to accepted belief)
Being a core customer type, they had the propensity to buy
That in using multiple outlets they were already familiar with how to spend, removing the need for space in the creative to be used for educating people on how to use outlets
That staff in the outlet were not recognising these customers as part of their target market so the campaign had to help these customers show themselves as serious prospects
Even though the size of the network and number of locations was a brand USP, it had significantly less importance on the creative as these customers already knew this
The resulting campaign was a highly personalised piece of direct mail that contained a discount voucher that was specific to this segment of customers. It was designed to fulfil 2 objectives based on the analysis and the research, get the customer’s attention and get the outlet staff’s attention.
Post campaign analysis showed an incremental increase in sales amongst this customer segment of over £1m. Not only did the campaign have an immediate impact on sales, but it helped change the behaviour of some of these customers, generating long term loyalty. Further success came in the form of an industry award for the Best use of Direct Mail.