Incremental Campaign Lift
Background: During a significant effort to drive customer activities to the Web, a large bank finds that despite “decent” mail/email response rates, they were not generating incremental profits after marketing costs at least partially driven by strong conversion rates among customers receiving no marketing.
Challenge: Generate incremental profit for each direct campaign of 1-2 million mailings, 4 times per year.
Measurement: Incremental campaign profit after factoring in marketing costs.
Benchmark: Must generate more profit than the no-mail group.
Method: Data Rewards developed multi-dimensional models that capture true profit lift based on coupon amount, customer sensitivities to coupons, self-motivational behavior and long-term customer value.
Results: Models turned 100% of direct mail campaigns profitable.