How a Banking Services Provider Doubled their
Response Rate on a Print Campaign and Saved $250,000

 

The Challenge

Challenge

To reduce costs and achieve a minimum 5% break even response rate on a loyalty print campaign – a hurdle that had never before been surmounted.

The Solution

Solution

Utilized KnowledgeSTUDIO™ to identify a segment of the loyalty program customer base who were most likely to be high responders, in order to achieve or exceed a 5% response rate.

The Results

Results

Achieved more than double their 5% target response rate and realized a savings of over $250,000 through data-driven customer targeting.

The Company

A North American banking services provider (BSP) with over 3 million customers. Part of a major supermarket brand, it offers a superior loyalty program.

The Challenge

The BSP’s loyalty group was launching a print catalogue campaign with the objective of driving customers to redeem points for general merchandise. Their challenges:

  • Increase response rate while reducing costs
  • Achieve a minimum 5% response rate for break-even – a rate that had never-before been attained

The BSP was challenged with improving their direct mail targeting efficiency and determining the optimum size of the mailing, in order to reduce overall costs.

The Solution

Using data mining and advanced analytics, the Angoss team leveraged KnowledgeSTUDIO™ to help the BSP:

  • Develop a model using past data and over 1,000 input variables to derive a targeted, validated mailing list
  • Identify banking services customers most likely to redeem loyalty points
  • Define the optimum size of the mailing to control costs

Using KnowledgeSTUDIO™, a model was developed trained on past data, predicting a substantial targeting efficiency if the BSP mailed the catalogue to only the top 20% of the scored target list.

The Result

The BSP gained valuable insight into key drivers behind points redemption behavior, improved customer targeting, and delivered higher response rates across targeted customer groups. Notable results include:

Angoss’ data mining and advanced analytics helped the BSP realize substantial savings and achieve record response rates, by identifying high-response customer groups.

“With the help of the Angoss team, and using KnowledgeSTUDIO™ to analyze customer behavior, we achieved at least double our stretch target response rate for a loyalty campaign. At the same time, we saved over $250,000 and reduced waste by focusing on a priority list of high-response customers.”

– VP, Loyalty Marketing

About KnowledgeSTUDIO™

KnowledgeSTUDIO™, part of the predictive analytics suite of products, is an advanced analytics, modelling and data mining workbench. It delivers a robust set of capabilities for the development and deployment of data mining models for a wide range of applications and use cases. Users benefit from an intuitive, wizard-driven interface with Angoss patented Decision Trees and unique Strategy Trees at its core.

Unlock the valuable customer intelligence in your data. Speak to one of our product specialists now.

 

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