In this case study, we’ll discuss how a B2C client in the hospitality/travel industry utilized a multi-channel approach to increase response rates amongst both loyalty program members as well as those on their prospect file. This program will demonstrate how this client’s current customers and prospects positively respond to good offers presented appropriately through direct mail, and were even more responsive when email is added to the mix. We’ll also touch upon how response rates varied across mediums between existing loyalty program members and pure prospects.
Targeting Travelers With Multi Channel Direct - Fresh Data Case Study
1. Fresh Data Case Study:
Targeting Travelers with Multi-
Channel Direct Marketing
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2. Overview:
• In this case study, we’ll discuss how a B2C client in the
hospitality/travel industry utilized a multi-channel
approach to increase response rates amongst both
loyalty program members as well as those on their
prospect file.
• This program will demonstrate the client’s current
customers and prospects positive response to good offers
presented appropriately through direct mail, and the
further increase in response when email is added to the
mix.
• We’ll also touch upon how response rates varied across
mediums between existing loyalty program members and
pure prospects.
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3. Goals:
• Increase the number of
customers in “luxury”
categories.
• Increase membership in
customer loyalty program.
• Investigate the
effectiveness of direct mail
and email individually and
when paired.
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4. Program:
Offer:
• Discounts up to 20%
off regular rates.
• Opportunities for
loyalty program
members to add
benefit points.
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5. Program:
List Selection & Segmentation:
• Using the common profile for current customers within
the loyalty program, in this case women aged 45 or
older having above-average levels of income and
education, prospect lists of names and addresses of
consumers living in zip/postal codes associated with
this demographic were acquired.
• These two populations, loyalty program members and
acquired names, were then subdivided into four
categories, one of whom received no communication
and three of whom received direct communication:
direct mail followed by email, direct mail only and
email only.
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6. Implementation:
• Colorful brochures mailed in early
part of the year, when many
people make summer travel plans.
• Email messages with similar
graphics followed one week later.
• Telephone research surveying
began after the two campaigns
were completed to explore the
knowledge of and attitudes
regarding topics pertinent to the
client’s business, intention to
travel and intention to join the
client’s loyalty program.
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8. Statistics:
• Loyalty program members who
received the direct mail brochure
had open, read and content-recall
rates upwards of 60% higher than
those who received only email.
• Prospects who received both the
brochure and email disclosed
open, read and content-recall
rates more than 20% higher than
those who received only the
email as a stand-alone.
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9. Sales Data:
• Loyalty program members who
received only the brochure were
30x more likely to buy than those
who received only the email.
• Puzzlingly, those members who
received both the brochure and
an email were only 14x more
likely to purchase than the email-
only recipients.
• Among prospects, the brochure
recipients were twice as likely to
purchase as the email-only
recipients.
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10. Conclusions:
• As stand-alones, Direct Mail
outperformed Email within
both the loyalty member and
prospect segments.
• As you may expect, data
suggests that enhanced ROI is
to be found in acquiring loyalty
club members and continuing
to mail them offers. Whether
one should follow that mailing
with an email seems to us to
require additional testing.
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11. Want More Fresh Data?
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Studies and Direct Marketing news & insights:
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12. About Data Services, Inc.:
Founded in 1967, DSI is a leading provider of data
management services to a global client base of
data-driven organizations spanning both
geographic locations & industrial verticals.
DSI Provides a unique blend of front-end Data
Management Platforms (DMPs) and back-end
Database Building/Maintenance & Data Quality
Services in order to ensure our clients get the
maximum return from their marketing data
assets.
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13. THANK YOU!
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