How Advanced Targeting delivered over 500% ROI

  • Industry: Retail
  • Client: Global Retailer
  • Location: North America

The Need:

They wanted to improve new sales conversion and customer acquisition.

The Challenge:

This client is in a highly competitive environment with many players and a wide range of products and pricing options. Their goal was an aggressive 5% year-over-year growth in customer acquisition despite a 35% decrease in budget; especially difficult considering the category was only growing 2-3% annually.

The goal was an aggressive 5% year-over-year in customer acquisition.

The Solution:

We used predictive analytics that leveraged data mining and probability factors so we could better forecast business outcomes. With that in hand, we identified and scored individuals based on their resemblance to existing customer profiles and behaviors, and scored their propensity to purchase and likelihood to respond to specific media channels and communications in each trading area.

The advanced targeting model had key criteria variables that included:

  • More than 50 key demographic, psychographic and behavioral attributes out of 1,300 attributes
  • Lowest number of touch points required to drive response
  • Propensity to purchase
  • Prospect travel distance and time to reach business location
  • Competitors locations and activities

The Results:

Over a 12 month period, our advanced targeting reduced their acquisition costs by over 100% versus previous year while while improving the ROI by ~500%.