Challenge
A collectibles company with one of the largest inventories of rare coins, currency, and other collectable products, sought to partner with Alliant to identify qualified inactive customers most likely to reactivate for their direct mail efforts. Reengaging their inactive customer base has been a cost savings priority to focus on.
Solution
Alliant and the brand collaborated on a custom optimization model geared to reactivate customers using direct mail. The Alliant Data Science team effectively analyzed the brand’s records of 12-48 month inactive customers, creating a model to help predict the most likely responders for the reactivation mailing.
The inactive customer file was then segmented into 20 groups based on their likelihood to respond, enabling the brand to test 3 different segments of names to mail: Groups 1-10, Groups 11-13, and Groups 14-15.
Results
The collectibles company successfully utilized Alliant’s custom response Optimization solution to identify the most qualified customers to reactivate and was able to achieve higher response rates. The reactivation order rates using Alliant score groups exceeded expected order rates of 2% by a range of 2X to 5X greater.
| Alliant Scored Target Group | Expected Order Rate | Actual Order Rate |
|---|---|---|
| Group 1-10 | 2.00% | 10.83% |
| Group 11-13 | 2.00% | 5.85% |
| Group 14-15 | 2.00% | 4.20% |
