We reached out to those dormant customers with a series of offers on their loyalty statements that normally only active customers would receive. Again, in less than eight weeks, the company realized a return on investment of 1,090 percent by tapping this new, previously inactive customer segment.
The results of these pilot tests validate the precision marketing model and illustrate its bottom line benefits. By leveraging customer analytics and data, these companies realized a significantly higher return on their promotional investment. In an environment where few retailers are realizing the full revenue potential of existing customers, leveraging the data you currently have to deliver relevant communications — as illustrated by the precision marketing framework — is critical.