LUXURY GOODS. Acquire New Luxury Customers With Predictive Marketing CASE STUDY. A Reach Analytics Paper 2016
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1 Acquire New Luxury Customers With Predictive Marketing CASE STUDY LUXURY GOODS A Reach Analytics Paper 2016 ACQUIRING NEW LUXURY CONSUMERS WITH AUTOMATED PREDICTIVE MARKETING 1
2 A Luxury Linens Brand Increased New Customer Spend 23% Using Automated Predictive Marketing When a luxury linens brand needed to acquire true net-new customers, they turned to Reach Analytics for a cloud platform that could deliver predictivebased prospects and supercharge their customer acquisition campaigns. Case Study Highlights + + A linens brand learned more about customers with advanced consumer profiling. THE COMPANY A luxury linens company operating boutiques worldwide, retailing online and offline, with bespoke services to high-end clientele. + + Rapidly built and executed on many predicitve models in minutes. + + Identified and targeted best prospects who would love the brand. INDUSTRY Luxury Retail LOCATION United States + + Tailored creative, targeting and messaging based on real prospect insights not guesswork. ACQUIRING NEW LUXURY CONSUMERS WITH AUTOMATED PREDICTIVE MARKETING 2
3 The Challenge A top purveyor of high-end linens was planning catalog and campaigns to acquire new customers and expand its US market footprint for their spring product line. The team had some idea of who their customers were, but to make their acquisition campaigns a notable success, they needed a clearer picture of what set their customers apart in the market and a way to use that information to identify and target their best prospects. When it comes to generating net-new customers, knowing how to target can be difficult. Questions come up, such as: How do I target prospects who will love our brand? How many best prospects are out there? When, where and how should I reach prospects Facebook ads? Direct mail? Should I promote our brand most heavily in California, Colorado or Texas? What messages or offers will prospects respond to? How much should I invest? Reach s automated, cloud-based predictive marketing platform allowed the linens company to answer all of these questions and to easily find and acquire people most likely to love their brand and become life-long customers. About Reach Analytics Great People Sense of Purpose A variety of whip-smart and energetic individuals working as a team. Creating cool stuff with a passion in the heart of Silicon Valley. Better Technology The Journey Less smoke and mirrors, more marketing that works for brands. Having fun along the way. You ll like working with us. ACQUIRING NEW LUXURY CONSUMERS WITH AUTOMATED PREDICTIVE MARKETING 3
4 The Solution For the campaign, the linens brand and their agency input a selection of the brand s customer data into the Reach platform and in-turn received powerful predictive profiles of their customers and prospects. They then exported their best predictive-based prospects, including the names, addresses and s of the people most likely to love the brand and become great customers. I. CURRENT CUSTOMER INSIGHTS In particular, the Reach platform cleaned and sorted the brand s customer data to remove any duplicate or non-us records (US-centric campaign), then appended household-level IDs to each record. The platform also enriched the brand s customer data, ensuring key third-party information was matched and appended to each household record, giving a more complete picture of current customers. This initial data clean and append process allowed the brand to both confirm assumed customer insights and identify new ones like geo location, income level, prevalence of home ownership, and preferences and interests about their customers. ACQUIRING NEW LUXURY CONSUMERS WITH AUTOMATED PREDICTIVE MARKETING 4
5 II. FINDING YOUR BEST PROSPECTS The platform also created a predictive profile of net-new prospects, unique to the brand, based on the unique characteristics and behavior that set the brand s customers apart from the general market. Reach s automated data mining, machine learning and advanced statistical methodology created not just one, or even a handful, but 100+ predictive models in minutes. The software then algorithmically determined and regressed to the models contain the best fit with the predictive variables essentially which profile model will best identify new lookalike prospects. ACQUIRING NEW LUXURY CONSUMERS WITH AUTOMATED PREDICTIVE MARKETING 5
6 The best predictive model was then used to score the total addressable prospect pool of non-customers. Every prospect in the pool has a likelihood to become a customer, however some are more likely than others. Algorithmic scoring, based on the predictive model (on each household record), ranked the prospects from most to least like current customers. The result delivered the brand s next best prospects. All of this modeling takes place in minutes not days or week. For creative and execution, the brand built a smart dualchannel plan, with touch points across and direct mail, ensuring engagement on digital and with their high-fit-andfinish printed piece. The campaign included four waves and a seasonal catalog mailing, which ran in the spring of ACQUIRING NEW LUXURY CONSUMERS WITH AUTOMATED PREDICTIVE MARKETING 6
7 THE RESULT The campaign was highly successful, driving more new customers than random. Targeted new customers spent more per purchase and more often with the brand, than untargeted acquisitions or current customers. NEW TARGETED CUSTOMERS VS. EXISTING CUSTOMERS New targeted customers spent 23% more than new nontargeted customers. New customers and existing customers made 64% and 42% respectively through the ecommerce channel vs. in-person. 23 % Ecommerce channel most prevalent channel for new customers. 64 % 42 % 38 % New targeted customers had 38% more purchase transactions than existing customers. 91 % Campaign click through rates: from Campaign open rates: from 14% to 22%; 91% over benchmark. 100 % 11% to 16%; 100% over benchmark. ACQUIRING NEW LUXURY CONSUMERS WITH AUTOMATED PREDICTIVE MARKETING 7
8 Sign up for a free trial or request a demo at or you can contact us directly: REACH ANALYTICS 2055 Woodside Road, Suite 270 Redwood City, CA info@reachanalytics.com (650) ABOUT REACH ANALYTICS Reach Analytics provides cloud-based, automated predictive marketing, with the only predictive platform designed specifically for brands. Delivering advanced consumer targeting, profiling and customer acquisition, Reach Analytics enables marketers to develop a deeper understanding of their customers and accurately discover and reach their best prospects in minutes rather than weeks or months. Reach Analytics is a privately held company headquartered in Redwood City, California Reach Analytics, Inc. All Rights Reserved. ACQUIRING NEW LUXURY CONSUMERS WITH AUTOMATED PREDICTIVE MARKETING 8
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