Lands’ End – Do online customers need catalogues?
The Business Challenge
This mail order client has seen a significant % of business coming via its website over recent years. Given this shift, a key question emerged.
Are online customers being influenced by catalogues? Can catalogue investment be reduced to these customers?
We believed online customers can be segmented as follows:
• Catalogue Browsers – those who order online just for ease
• Catalogue Prompters – arrival of catalogue prompts visit
• Web Browser / Buyers – all browsing done online
• Identifying these differences would massively impact marketing performance
“In the first 12 months alone, R-cubed delivered a 20% increase in marketing efficiency – we trust them.”
The Approach
An essential first step was to understand how these online customers behave when NOT mailed, and a test was established to withhold a number of customers from a catalogue mailing. With this in place we: • Created a full customer data bank, fusing data from FastStats™ and Omniture • Harnessed all past online and offline behaviour • Compared order rates of those mailed vs. those not • Identified key attributes where mailing had NO impact • Significantly, analysis of online behaviour revealed very differing customer behaviours / motivations • Harnessed this data into a model, identifying those for whom the mailing had no incremental impact – the Web / Browser buyers.
The Results
Results far exceeded expectations, in the first 6 months alone…
• 60% reduction in marketing costs to web browser/ buyers
• 10% saving in the Lands’ End’s UK total catalogue budget
• Increased contribution of 23% from these online customers
Would you like to get better results, from less budget?
“Their unwavering focus is on making money from data. I am happy to recommend them, or indeed answer any questions regarding their capabilities.”
“By understanding who was actually being influenced by the catalogues and who wasn’t, we reduced our costs by up to 10%.”
“I must say that I have never enjoyed working as much with a third party as I have with R-cubed. You guys are a true partner and extensions of the CRM team – not just on paper and in words.”
