Lands' End

Do online customers need catalogues?

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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

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

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Customer Segmentation

analysis and measurement icon

Analysis & Measurement

Single customer view icon

Single Customer View

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Marketing Automation

Marketing Attribution icon

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Joined up marketing icon

Joined-up Marketing

Real-time marketing icon

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FastStats & PeopleStage