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Madison helps a major retailer and longtime client leverage their consumer database and variable messaging & offers to drive higher returns on advertising and promotion efforts.
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Delivering Efficient Outsourced CRM
Background:
A major retailer and multiyear Madison client realized distributing the same high-value savings offer to 12 million young families via Madison's multibrand mailers,
regardless of whether households are converted
shoppers or not, could unnecessarily fund loyalty and
thus sacrifice profits.
They turned to Madison for help leveraging their
consumer database and variable messages and offers to harvest existing shoppers more effectively and in turn drive higher returns on advertising and promotion investments.
Key Issues:
- Less than 30% of young families shop at this category of retailer.
- However, a high percentage of those that do are
repeat shoppers.
- Competition in this category of trade is significant, with
high value incentives regularly distributed by all
category players via mail, targeted magazine delivery,
and Sunday newspaper free standing inserts.
- Key client objective was to acquire as many
households as possible within the category and then
drive high-profit repeat purchase.
Madison Solution:
- Match client's database against Madison databases on
a monthly basis.
- Distribute high-value acquisition offers via all Madison multibrand mailers
- Identify responsive households and existing client customers. Distribute lower value (higher profit)
loyalty offers. Vary offers over time based on
response data and vary promotions to keep
relationships fresh.
- Distribute multiple simultaneous inserts with varied promotions to top-tier,
high-profit customers to maximize volume and profit.
Results:
Isolating prospect customers for high value offers and identifying and tracking known customers for repeat,
lower value loyalty offers delivered for this client
stronger consumer relationships and significant, ongoing
profit gains. |
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