Direct Marketing Response Model Drives Big Profit Gains

The Challenge

Contact frequency optimization was key for leading multi-title catalog mailer.

A prominent multi-title catalog mailer faced a profitability crisis in their direct marketing campaigns. They would need to overcome 3 big challenges to improve direct mail productivity.

1. Skyrocketing direct mail costs Soaring postage and paper expenses put stress on this cataloger’s profit margins, making it tough to fund much-needed customer acquisition. 
2. Lack of contact frequency controls This experienced cataloger was frustrated by an age-old direct marketing strategy challenge: no clear way to optimize contact frequency. Both under-mailing and over-mailing eroded productivity and margins, while leaving revenue on the table. They knew they’d need to optimize contact frequency to drive improvements, but how?
3. Reduce cannibalization, accurately quantify incremental revenue The last formidable challenge was determining the impact of cannibalization from one mailing to another and getting a clear handle on incremental revenue gains. It made it extremely difficult to gauge overall direct marketing performance or know which levers to pull to drive improvements.

Our Approach

We implemented our one-of-a-kind direct marketing response model.

ResponseGuru is a direct marketing response model with a proprietary tool that’s meticulously designed to optimize contact frequency based on actual performance across campaigns and drive true incremental profit. We aimed to: 

1. Maximize Profit: ResponseGuru discerned contact frequency optimization, to achieve optimal seasonal mailing frequency at the contact level and overall. This enabled the company to maximize profit from their catalog investment.
2. Reduce Over-Mailing, Under-Mailing: By pinpointing incremental profit and minimizing cannibalization, our unique direct marketing response model would ensure that the right touches happened at the right time to the right contacts, without squandering budget on excessive mailings to unresponsive segments.
3. New Customer Acquisition: ResponseGuru drove unproductive budget out of housefile mailings. The company redirected these precious resources toward acquiring new customers to drive growth.

Results

ResponseGURU helped drive incremental profit and other key benefits.

Conclusion

If results like these could drive big wins in your direct marketing business, let’s talk. Book a Demo to learn more about ResponseGuru and see if it’s a fit for your marketing team.