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Case Studies

Client: A national manufacturer and retailer.

Challenge: Help this company work its way back from several years of severely declining sales, corporate bankruptcy and losing sales from closing 20 stores.

Strategy: Response-Marketing analyzed disparate databases, cross-referencing point-of-purchase transactional data with classification and descriptor attributes, and immediately noted distinct and definitive customer profiles, spending habits and value-to-brand. Response-Marketing used three pre-determined categories—fashion-focused, moderate and value-focused—based on product mix and transactional histories. This comprehensive analysis laid the foundation for segmented customer communications.

Success: The Company expanded their database from 1 million to 4.5 million names and acquired more in depth knowledge through focus groups and surveys going beyond standard differentiating factors. Matching images, offers, messages and channels with customer profiles not only resulted in increased sales across the board, but the segmented campaigns revealed the significant cost of sending customers the wrong message. “Fashion-conscious” customers, for example, were 73% less likely to respond to price-related messages than Value-focused customer. In partnership with Response-Marketing, this client has reduced its marketing budget by over 50% and seen a solid increase in his store sales.

Client: Fundraising organization.

Challenge: Leverage contact information, enhance donor communications and create profiles for targeted canvassing to increase breadth and depth of donor base.

Strategy: Response-Marketing developed a multi-functional data-capture survey, deployed in print and online, to leverage collected contact information and fine-tune donor demographics. An additional Web-based data collection path helped ensure data accuracy and facilitate member interaction. Enhanced member and prospect insights were channelled into business intelligence and reporting tools to help develop more targeted tactics and steer ongoing strategic planning.

Success: The organization member survey had a 9% response and dispelled the organizations beliefs surrounding their current member base. Contrary to their thoughts, the member survey revealed surprising and contrasting finds concerning political affiliation, gender, geographic orientation and annual income.

Client: A Telecom provider

Challenge: A leading national wireless telecommunications provider needed help improving their relationship marketing programs for new product sales and services to their current customer base. We had to build business intelligence (BI) and develop a strategy to effectively communicate with current customers about new products and services.

Strategy: Powerful, personal and targeted customer intelligence was shaped using the best information. Our BI team members created detailed opportunities to increase performance and sales with a segmented marketing solution based on customer value management. Using advanced analysis to create insightful information from mining the client’s data the team uncovered several keys in the customer base to better understand how to grow customers and build loyalty. Additional risks in managing customer relationships were found, and new revenue opportunities among existing customer base were uncovered. By analyzing the client’s data, we were able to create robust customer segmentation classifications and profiles. An analysis was built around two major segments—high and low credit risk. The two groups were split into 15 categories, according to the way customers used their wireless phones and we identified unique trends and behaviour differences between the two groups. This consumer segmentation analysis gave the wireless provider new insights in the form of descriptive customer profiles and allowed them to begin selling new services to the appropriate customer who was more likely to purchase.

Success: Today, the wireless provider is using new strategies and consumer segment profile marketing. Current customers of the wireless provider have been offered and sold what they are more likely to purchase for their credit level. For strategic marketing acquisition or customer relationship management efforts, our segment analysis drives the type of product or service offerings. Inside high-risk target segments, customers are migrating to less-risk service offerings. Higher growth and value segment customers are selecting enhanced products and services. Customer value management solutions have a positive influence on the effectiveness of relationship marketing programs– a value-add that increases customer satisfaction, and ultimately, the wireless provider’s revenue and profits.

Client: An Insurance company

Challenge: The challenge for the insurance company was growing and retaining loyalty program members. Demands from increased marketing expenses and competitive programs were slowing company marketing efforts to increase its share of customers. Despite outstanding creative marketing tactics, ongoing costs to acquire and retain program members were rising fast and returning less than expected value. The company was pressured to do something. They needed to build greater value while keeping costs under control.

Strategy: Using advanced analytics we built intelligent information revealing how members interact with the loyalty program. From these insights, additional opportunities in managing customer member relationships were found—and new revenue opportunities were projected. In addition to customer profiles and application development, our BI team members recommended valued-added strategies providing tools to forecast ROI more effectively for each customer group within their customer population and intelligence on customer behaviours to match marketing expenses to customer care performance

Success: Our BI team has enhanced the airline's customer relationships through customer intelligence that can be translated into the design and success of targeted marketing initiatives. Today, the airline offers customers more services and programs that they are not only more interested in, but more likely to buy. The segment analysis is driving the type of program or service offering within customer acquisition or retention initiatives. Inside high-value, loyal target segments, customers are choosing more of the programs they are offered. When it comes to forecasting program success and ROI, our predictive modeling provides a method for evaluating each program member based on their potential program involvement.

Client: An Insurance company

Challenge: A nationwide insurance company needed to implement innovative approaches to increasing sales.

Strategy: Using Agency Optimization approaches, Response-Marketing helped the insurance company identify gaps in their current agency deployment, as well as identify underperforming agents and target them for proactive agent training and support.

  • Built best customer and best agent models using household and census demographics within each agent territory
  • Ranked and mapped agents and territories by potential to identify opportunities for improvement

Success: Identified 25% of their current agency population that was underperforming relative to territory potential.
Identified 2,500 active agents that had not written a new insurance policy in 3+ years.

  • Agency used this information to produce additional sales support and collateral materials for underperforming agents.
  • Identified high potential territories in California, Illinois, New York, Tennessee and Texas that had no active agent assigned.
  • By re-staffing these territories, the company was able to reconnect with "orphaned" policy holders and target the best prospects for new policies.

Client: An Insurance company

Challenge: A nationwide insurance company wanted to reduce a 13% annual attrition rate.

Strategy: Using Marketing Optimization approaches, Response Marketing helped the insurance company understand the customer behaviour that was driving cancels and develop separate retention treatments around each type which included 1) passive cancels, 2) active cancels and 3) indirect cancels. Response Marketing then helped the client build the business case for retention that quantified the financial impact of reducing attrition rates by cancel type and product.

Integrated acquisition models were then built to improve the quality of new customers and predict customers most likely to attrite. Deliverables included a forecasting system that identified and forecasted seasonality and trends of attrition rates by products, account types, markets and other defined dimensions. Six specific opportunities to impact annual premium through the retention strategy were identified:

  • Customer Save Strategy
  • Product Education
  • Customer Insight
  • Targeted Contact
  • Acquisition Integration
  • Channel Management

Response Marketing then designed the supporting infrastructure to support the ongoing solution including the database environment, management reports and integrated analytic systems.

Success: The retention solution, through early testing of 3% improvement in retention rates, was projected to create over $100M in annual retained premium over the average lifespan of the policies.

Client: A Healthcare company

Client: A Financial Company

Challenge: build additional capacity for the customer service contact center.

+1 514 392-0224  square  1440 St. Catherine West, Suite 410, H3G 1R8 square  Montreal, QC, Canada  square  info@response-marketing.net