CPG & Retail Case Study

Response Model for a Gift Catalog Company

  • Background

    • A leading catalog company selling gift hamper and individual gift items through online and offline catalogs had tried “RFM” model for mailing catalogs. However, the response rates were not satisfactory. So, they approached Deeta to increase response rates for its email direct mail communication.

    Approach

    • Combined behavior variables including response propensity by media and purchase propensity by channel (online vs offline) with demographic variables
    • Developed linear and logistic regression models to score response propensity of customers by media (including cross-media)
    • Used driving variables to segment customers using cluster analysis
    • Developed contact strategy using media and channel propensity

    Results

    • Increased response rate by 8%
    • Revenue/contact increased by 14%