Aignyte delivered 1.4x improvement in response rates for a Fortune 10 retailer and a 2X increase in campaign efficiency compared to all previous direct mail campaigns conducted without Aignyte. Aignyte’s hyper-personalized recommendations addressed the question – What will stimulate a prospect to respond? as opposed to the traditional approach of Who will respond? For each individual prospect, Aignyte’s algorithms picked one of the possible 4000+ possible offer combinations that is most likely to make that prospect respond, and the second best one and so on.
QuaEra worked with a large retailer trying to increase market penetration in a key geographical market through direct mail marketing. Our client was sending 3+mm mail pieces every month to every prospect in the targeted area and less than 4% of them responded after two years of full file (to all prospects) mailings. The product was largely a commodity, with little differentiation across various players. Therefore, product differentiation as a strategy couldn’t be pursued. The retailer had been using sophisticated demographic and psychographic segmentation (with 100s of variables) to match their prospect file to relevant offers and creatives. Since mailings were being sent to all prospects in the pool no response models were used. In addition, the retailer had tried and tested a variety of ways (different offers, different offers combinations, pricing discounts, contact strategy combinations, etc.) to increase penetration but with little success.
Aignyte was especially suited to help our client increase response rates and penetration, as it approached the problem by addressing the question – What will stimulate a prospect to respond? rather than the traditional response model approach – Who will respond? To answer the question. Aignyte needed to parse through the 4000+ combinations of product offers, messages and creative and then match each prospect with the precise combination that is likely to make that prospect respond. Aignyte’s advanced algorithms translated each product/offer/ creative combination into a “creative genome” and then match it to each prospect’s unique characteristics (generated from linking 64MM historical prospect touchpoints) generating a truly hyper-personalized recommendation for each of the 3+mm prospects.
Aignyte generated recommendations resulted in a greater than 40% increase in response rate. Now more than 5.6% of prospects responded vs. 4% earlier. And it took far fewer touchpoints (direct mail campaigns) to convert a prospect into a customer (from 11 earlier to 6 with Aignyte’s recommendations). The retailer achieved both goals ….Lower cost of marketing and higher penetration!
Find out how Aignyte can help turbocharge your direct marketing efforts today!
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