Targeted campaigns
Our client provided the broad brief of looking at possible opportunities within the business and finding a group of customers within their database who could be influenced through a direct mail campaign.
To do this we analysed several metrics which allowed us to identify a segment of customers that used multiple outlets across the client's national network but fell within the definition of being a low spender. Further profiling showed that it contained a high proportion of core customer types that did not spend enough to be considered as using the Client as their main supplier.
This segment was also validated against external data sources and insight from outlet staff brought real world knowledge and confirmation these were core type customers and that they aligned with the business strategy.
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, 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 also helped change the behaviour of some of these customers, generating long term loyalty, increasing the Customer Lifetime Value (LTV).
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