Challenge

A large US office equipment and stationery supplier wanted to reduce the cost of acquiring customers and improve retention rates via better targeting and more personalized campaign content.

Solution

We built a series of predictive models to help the company to target customers more efficiently, improve cross-selling strategies, and promote higher-margin own-brand products. Costs were reduced by rationalizing target databases, and incremental response rates boosted through more intelligent targeting.

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Outcomes

  • Reduced the incremental customer acquisition cost from US$ 200 to US$ 120
  • Drove US$ 375,000 incremental sales from Rewards Loyalty program
  • Saved US$ 65,000/month by optimizing coupon redemption
  • Drove US$ 75,000/month in net margin increase on own-brand sales