An entertainment retailer located in major shopping centres around Australia had succeeded in reducing acquisition costs but was keen to drive further cost per acquisition efficiencies while increasing market share
Using the client’s customer data, we conducted a series of detailed profiling, segmentation analyses and headroom analyses. Demographic and behavioural profiles of repeat customers were used to identify lapsed customers with similar profiles as well as define new potential targets. Focus groups with target customers were also conducted to validate the profiles and to better understand behaviours and expectations. Lists and hot/cold maps showing the location of prospects were provided to store managers for local area marketing.
Because campaigns were highly targeted, the client achieved:
- 34% cost per acquisition savings
- 14% decline in customer churn.
- Most stores also experienced increased foot traffic during the promotional periods.