CASE STUDIES:
 Customer Acquisition
 Customer Retention
 Customer Targeting
 Process Flow

Case Study: Customer Retention

National Retail Tire And Related Services Company

Overview:
This company had been collecting a wealth of data about its customers - what services they purchased, what brands of tires they bought, the amount spent, the dates of service, the location of the store used for the service, the model and age of the vehicle serviced, etc. They wanted to use this data to cross-sell additional products and services, to develop customer loyalty and to learn from the existing customers to enhance targeting of new customers.

Objective:
Design and implement customer retention and cross-sell promotions and new customer acquisition programs.

Solution:
Review existing reports from database updates and develop ones that provide more meaningful marketing information. Use this information to determine market potential and information about current customers that would be useful in targeting new ones.

Develop a strategy of how often to contact current and prospective customers, what messages to give them and what offers. Create a plan to test mailing piece formats, messages, timing of the mailings and offers.

Have the mail pieces and offers personalized based on what the customer purchased and how much they spent, and to the local market (reflecting differences in competitive pricing and products sold). They were also personalized to the store visited (manager's name, store address, hours of operation).

Research sources of names and negotiate rental rates. Write data processing specifications to de-dupe lists, code significant items for easy back-end analysis, and prepare files for personalization of the mail pieces. Generate report templates and perform back-end analysis. Provide quality assessment checks for all processes.

Results:

Almost every promotion showed an increase in response rate and dollars spent when 'promoted households' were compared to 'non promoted households' (a comparable group of households were held out from receiving each promotion).

For every $1 spent, an additional $2.75 - $3.65 was generated in revenue from those receiving the promotions.

Store managers reported customers asking for them by name and referring to the mail pieces. In some cases they felt the personalization helped to create a more friendly atmosphere when dealing with an unsatisfied customer.

Services Utilized:
Marketing strategy, audience targeting, project management, program analysis.

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