Retail Cataloger Mails More Profitably and Adds Almost $3M Revenue

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Loyalty Builders finds the best customers whose value exceeds the cost of expensive campaigns. This customer peaked returns by removing unprofitable customers and adding 57,000 undetected profitable ones.

The Problem: This B2C catalog retailer needed to improve the profitability of catalog mail campaigns and was having difficulty targeting the right customers. They had limited analytic resources available to address the problem and were facing budget cuts.

Prior Approach: The Abacus scoring methodology had been used to select customers, but was difficult to use and not as effective as required.

The Loyalty Builders Approach: Using Loyalty Builders' service to analyze and select customers for monthly catalog mailings made the process a whole lot simpler and much more effective, while requiring fewer resources.

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The Results: This company was able to increase revenue from catalog marketing while reducing costs. In a typical example, Loyalty Builders was able to identify over 57,000 profitable customers not selected by the customer's previous method, generating $242,000 in incremental revenue for that campaign. Over the course of 10 campaigns for the year, revenue was lifted $2.9 million.