One-to-one marketing using predictive analytics
A major international supplier of computers and peripherals realised that whilst their telesales team was very effective with sales to new companies, when it came to up-grading equipment, custom far too frequently went to competitors.
Tech4T was therefore commissioned to undertake a statistical analysis project to help the company fully understand the life cycle of its different types of customers and identify trends and behaviours that influenced on-going purchases.
Working with a copy of the customer database and several years worth of associated transactions, Tech4T developed a comprehensive segmentation system clearly identifying the various groups that made up the customer base, their characteristics, their purchase patterns and their life cycle stages. Outputs from this initial part of the project were immediately useful in developing offers and messaging unique to each group.
Tech4T then built upon this work with the development of predictive models to identify the purchase patterns exhibited by customers over time that ultimately lead to defection to competitors. This would enable intervention at the right stage in the customer life cycle with messaging and offers relevant to their past purchases.
For the messaging to be effective, true one-to-one marketing had to be achieved by referencing individual purchase histories in marketing communications. This was achieved by the inclusion of several products in each marketing piece; the exact products were determined by a set of rules resulting from the predictive analysis and related to purchase history in each case.
Tech4T produced all the necessary files for the digital printers and email providers generating the communications. To support the telemarketing team following up the communications, Tech4T supplied customers lists prioritised by call order dependent upon the value of the client and the behaviour exhibited.
GRAPHIC: prioritised call list
Over £5 million generated in revenue from the first campaign alone!
One-to-one marketing with customer analysis
Our client, an international publishing group, produces a wide range of niche interest print magazines. They wanted to take full advantage of the information contained in their customer base to lift the number of subscriptions sold as a result of a proposed direct marketing campaign.
Tech4T analysed the consumer subscription files looking for patterns in transactional data that would help select the best magazines to promote to each individual. We than created the data files to individually personalise email and A5 mailing cards, varying the image and content to that of specific magazines. Each communication was also associated with a personalised website landing page.
GRAPHIC: example mail shot or email
For those people that did not buy following the first communication, we analysed the resulting web page visits and the time spent on each. A new email campaign was created promoting the title where most interest had been identified.
The email process was repeated three times and the final result was a four-fold increase in new subscriptions.