The Challenge
Target marketing was not a new concept to a regional cable TV marketer. They routinely relied on response tracking to measure the effectiveness of their direct-mail initiatives, and compared the results of different acquisition and upgrade offers depending on the level or service each target currently received. Those results helped steer their marketing strategy, which greatly increased their response rates and improved their ROI. But was there a simple way of analyzing that response data to determine whether there were common characteristics of those who responded to one offer or another? What did those responders "look" like... and could that information be leveraged to improve results on subsequent marketing initiatives?
The MainTrax Solution
MainTrax appended 100,000 records contained in a mail list or an acquisition/upgrade direct-mail initiative, breaking down the list into seven Cohorts demographic groups and 30 mini-segments. Upon completion of the initiative, MainTrax broke down the responders into the same 30 mini-segments and analyzed which Cohorts groups responded disproportionately better.
Results
Several Cohorts segments emerged – often skewing older in age and lower in income – as response leaders. With this knowledge, the cable marketer began to tailor messages accordingly.
| Target | Offer | Response Rate | Segments Responding Disproportionately Better |
Segments Responding Disproportionately Worse |
|---|---|---|---|---|
| Former Customers | Digital Phone | 1.4% | Modest income grandparents, affluent empty nesters and mature couples | Modest income grandparents, mature couples and affluent couples with kids |
| Digital cable customers with high speed internet | Add digital phone service for $24.95/mo. | 3.6% | Modest income grandparents, affluent empty nesters and mature couples | Working class couples, upscale middle-aged couples, teen-dominated families and young families |
| Customers with either digital phone or high speed internet | Add a service for a combine price of $59.95/mo. | .9% | Modest income grandparents, mature couples and affluent couples wiith kids | Energetic hyperactive newlyweds, energetic young guys, working class guys and fit and stylist students |
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