Driving Measurable ROI: Cutting Marketing Costs by 50% While Growing Customer Acquisition
The Situation
A $100 million-a-year business with over 100 locations was struggling to determine if their $17 million marketing investment was effectively growing their customer base. The problem was a lack of understanding about which customers were most likely to do business with them and a resulting misallocation of marketing resources, particularly with their 1.1-million-piece monthly direct mail campaign.
The Results
DataClique analyzed the company’s customer database to identify key customer groups and their locations. They discovered the direct mail campaign was missing areas with the best prospects. DataClique revised the direct mail strategy to target only “best prospects” within a three-mile radius of each location. This resulted in increased conversion rates, sometimes doubling previous performance, and identified that 25% of new customers received a direct mail piece, which decreased per-customer acquisition costs by up to 50%.
DataClique also addressed the company’s lack of analysis for their $3 million digital display advertising and Pay Per Click campaigns. They tracked customer conversions and retargeted visitors who didn’t make an initial purchase, achieving a 15% recapture conversion rate through digital. After six months, the company had insights into online performance, leading to smarter decisions about marketing spend, a 30% reduction in the ad budget without negative impact on sales, and a 50% reduction in marketing costs for opening new locations. Digital advertising accounted for 32% of all new customers.