Predictive Analytics Increase Sales, Reduce Costs for Targeted Campaign
This client needed to target their product to the ten thousand people most likely to buy.
Sysware worked together with Mapnet to identify those people. Mapnet geocoded the client’s existing customer database and referenced the customer addresses to census meshblocks. Sysware then joined the NZ customer database file to the large database of information from the 2001 Census database. By running data mining procedures against this data, Sysware was able to identify the characteristics of current buyers of the product.
Sysware discovered that buyers had certain characteristics, including a high probability of being born overseas, a high income, internet access and tendency to have financial investments.
Sysware then identified the meshblocks containing residents with the highest concentration of these characteristics. The customer was given a list of targeted meshblocks, and a detailed report containing graphic representations of distributions and customer profiles. The list was sorted by propensity to purchase, the client used this to mail a high-quality promotional package to the top 10,000 addresses (excluding existing customers).
The results of the exercise speak for themselves.
Targeted address response rates were up 52% from the previous year. Average customer spend in response to the addressed campaign increased by 284% on the previous year.
By utilising Sysware’s data mining expertise and Mapnet’s mapping capability, the client achieved a vastly improved response rate, and a huge return on their investment. Sysware was proud to be involved in such a successful collaborative exercise, which provides compelling evidence on the success of targeting on increasing sales and reducing costs