Direct Marketing Program Management
Consumer Packaged Goods
The Challenge
The Client is an American consumer packaged goods company. They asked Management Science Associates, Inc. (MSA) to take over their opt-in consumer database and completely manage a Direct Marketing (DM) program for them.
Their database was already large and consisted of consumers who wanted to receive communications and promotional offers from the company. The Client wanted MSA to manage further growth of their database and have certain consumers regularly receive specific coupons, surveys, and info on sweepstakes and giveaways, via DM mailers and email (eDM).
What Did MSA Do
MSA created its DM Program Management solution initially for this client. MSA’s solution consists of six (6) major components and processes:
An opt-in consumer database of users and competitive product users. In this case, MSA took over an existing database and managed its ongoing maintenance. Consumers were recruited via either company-sponsored websites, or a call center that received requests from consumers who wanted to be included in the program.
MSA’s proprietary NaviGATE™ technology. MSA created a custom, NaviGATE user interface for the Client to access the database and be able to setup consumer target criteria for DM and eDM campaigns.
Database generated mailing lists for DM mailers and email lists for eDM. MSA took these lists and coordinated with a third party vendor to have 10 DM mailers and 5 eDM campaigns sent out every month.
Periodic data extracts and reports generated from the database. These outputs were given to key Client stakeholders and to some third party vendors.
Advance DM analytics. MSA used some of the data extracts to develop custom Response Models, Loyalty Models and Vulnerability Models, so as to continually improve and optimize the DM program’s campaigns.
Mobile Coupon app for CPG. Consumers can be served coupons once they enter certain retail locations. They are able to redeem offers by displaying coupons from their smartphone at checkout.
The Results
- Within a few years, the Client’s opt-in consumer database grew to more than 12 million users.
- Coupons delivered through direct mail (DM) and email (eDM) campaigns achieved significantly higher engagement.
- Redemption rates for DM and eDM ranged from 6–16%, far outperforming traditional methods.
- In comparison, traditional FSI coupon redemption rates remained below 1%.
- The program drove measurable results, with weekly sales lifts of 0.6 to 1.9 units per market, depending on offer generosity.
