The client was looking for opportunities within their database to grow the number of active customers.
While a segment of customers existed that spent with a frequency that suggested they were not entirely at risk of lapsing, spend values were low and purchase activity was inconsistent.
A targeted campaign was seen as the method of engaging with low spend customers who could be influenced through a direct mail campaign.
The aim was to understand the potential barriers to customer spending, remove them and increase spend where possible.
We analysed several engagement and transactional metrics that helped to identify segments of customers that used multiple outlets across the client’s national network and had greater spend potential.
Validating the targeted customers against external data sources and insight from outlet staff brought real world knowledge and confirmation these were core customers that aligned with the business strategy.
Analysis of the segment profile and sales behaviour shaped the campaign brief and guided the strategy. The result was a highly personalised direct mail campaign with contact details for all of their local outlets, all designed to make the customer’s purchasing experience smoother.
One element of the campaign was designed to use the customer to attract the attention of the staff in the outlet, an unexpectedly large discount on an order that wouldn’t normally make the staff think the customer had a great potential to spend. It had an impact on how these customers were valued and a positive impact on their lifetime value.
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 also helped change the behaviour of some of these customers, generating long term loyalty, increasing the Customer Lifetime Value.
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