Challenge
A food product continuity marketer found that inconsistent customer payment rates and an increasing number of write-offs were limiting the profitability of its direct mail campaigns. They needed a solution to identify the most reliable payers.
Solution
Alliant developed a multi-behavioral model to predict the range of response behaviors possible for the promotion: pay for the intro offer only, then cancel; pay for two shipments; pay for three shipments or more; not pay at all. The client used the custom model to identify prospects who were more likely to pay for multiple shipments ― those unlikely to be profitable were eliminated from the mailing list. The model generated impressive results:
Results
Reduced write-offs by 50%
Increased the number of paid shipments by 37% while maintaining the response rate
Increased the number of payments made by phone and web by 37%, which generated more up-sell and cross-sell opportunities
