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Client: A $2M niche clothing catalog business that sold to tall women. They mailed full-color catalogs to their 10,000 existing customers several times a year. |
Challenges: The company's catalog production and mailing costs were quite high and rising as postal regulations tightened. Response rates were dropping. Their database had never been updated. Many of their catalogs were undeliverable and thus discarded by the postal service. They never knew how many catalogs went into the trash because the postal service does not notify bulk mailers of such discards.
Solution: Management Analytics Group's strategy was to generate repeat business from their current customer base. We cleaned and updated their customer database and discovered that 15% of their customers were no longer at the address being used by the company. MAG recommended that these customers be mailed a catalog immediately using the updated address information we provided.
Results: Within 6 weeks, the 15% of rediscovered customers generated a 10% response to the mailing. The average order was about $100 -- similar to that obtained from the first mailing.
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