Predictable results drives success.

Predictable results allowed this retailer to treat direct marketing as a profit generator rather than a cost. Response rates grew to 11%, and the average sale per direct mail recipient grew by 300%.

When we began working with this 100-year-old high-end retailer, they had mountains of customer transaction data. However, they couldn't use the data for marketing -- every customer looked the same. We organized and analyzed the data, extracting valuable information that became fuel for the most successful marketing programs in the company's history.

By conducting a customer value segmentation, our analysts discovered that some customers were actually quite different than others. An RFM (Recency, Frequency, Monetary Value) based segmentation analysis, evaluated customers based on three dimensions of value, a process that reveals much more than a single variable alone. Once customers were segmented based on value, we profiled the "best" customers using more than one hundred demographic characteristics and fifty lifestyle characteristics. Now, we had a solid foundation from which to help them find new customers. The profile was used as a screening tool to market only to those households that meet the best customer profile criteria

Knowing the customer can turn marketing into a science. The profiled and segmented lists work so efficiently that this retailer can now accurately predict how much revenue each marketing effort will generate. The average sale has grown by more than 300%, and response rates have sky-rocketed to an enviable 11%.