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

“By understanding who was actually being influenced by the catalogues and who wasn’t, we reduced our costs by up to 10%.”

Lands’ End UK

"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."

Travel Republic

"Their unwavering focus is on making money from data. I am happy to recommend them, or indeed answer any questions regarding their capabilities."

TUI

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