SAS Marketing Optimization

IMPROVING OFFER CHOICES FOR EMAIL AND DIRECT MAIL PROGRAMS

In this case study for a national retailer, we detail how 89 Degrees:

  • Implemented the marketing systems needed to better understand and engage customers
  • Improved allocation of budgets based on campaign constraints for best possible outcomes
  • Directly enhanced the performance of email and direct mail campaigns

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Woman browsing drug store

Business Needs

Our client, a Fortune 100 retailer providing medications and consumer goods for over 90 million customers, was looking to capitalize on their investment in SAS Marketing Optimization by improving offer choices for email and direct mail programs. The goal was to improve the process of choosing audiences and allocating product coupons in multi-offer campaigns to increase response and meet offer redemption budgets.

SAS marketing optimization flow chart

Solution

A team of 4 consultants worked with this retailer over the course of 6 months to develop predictive models, configure SAS Marketing Optimization (MO), and then deliver documentation and training to the retailer.

PREDICTIVE MODELING

Using a full year of historic campaigns, 89 Degrees built over 30 models using SAS Enterprise Miner for likelihood to shop, redeem, and expected sales in a given time period after receiving email. We then automated the process to take data from client’s existing database system, run SAS models, load into SAS Marketing Optimization, allocate the best offer given a redemption budget, and finally load back into the database to be deployed using the client’s email process.

OPTIMIZING AUDIENCE AND
COUPON ALLOCATION

The 89 Degrees team improved the audience selection process using likelihood to redeem a coupon and relevance of available product offers. We also streamlined the campaign briefing process allowing business constraints (circulation limits, exclusion rules for brands or categories) to be loaded directly into SAS Marketing Automation. The assignment of relevance scores for each customer/coupon combination was automated using historic purchasing and category models.

Images

Drug store pharmacist helping man

Results

The optimized email offers showed an increased ROI of 20% over business as usual with more predictable redemption costs. A standardized direct mail process has reduced deployment effort and created more personalized coupon choices, leading to higher redemption rates and better ROI. Transition to the client was seamless, with the delivery of documented processes that are faster to deploy and can scale.

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