Predictive segmentation delivers 11% uplift in sales

Launched in 2001, Cox & Cox offer a handpicked collection of fresh, stylish and practical home gifts and homeware. Aimed at the individually minded customer this unique range is sold online and also from an A5 catalogue, which is mailed direct to the customer.

Challenge

Cox & Cox have grown considerably over the last few years and consequently their database has grown to over 300,000 customers. Cox & Cox were conscious of increasing mailing costs and lower ROI’s so challenged Go Direct Marketing (GDM) with improving the performance of their housefile by mailing as effectively as possible.

Solution

GDM analysed the Cox & Cox customer database and developed a robust predictive customer segmentation model which combined offline data with email and web interaction data to rank their house file in terms of their likelihood to purchase. This was to be tested alongside the existing RFM segmentation and selection over a season to prove an uplift in mailing profitability.

Go Direct Marketing have helped me understand which of my inactive customers are more likely to purchase by combining offline data with email and web interaction data - model testing has shown an 11% uplift in sales compared to the previous segmentation. Multiplied across 8 mailing per year this is a significant increase in revenue for a very small investment

Rod Taylor – MD, Cox & Cox