Challenge
Our client, a retail giant, wanted to measure their Win Back campaign strategy (executed for lost customers) to assess incremental impact of these campaigns from a marketing and targeting stand point.
Approach
Different customer segments were selected among the customer base, based on cohorts, and different offers that were served to these groups were analysed.
CAC (Customer Acquisition Cost) was plotted along with the mail depth to limit the mailable size.
The conversion rate of the individual groups was calculated and lift was categorised between organic renewal, campaign derived renewals and targeted campaign renewals.
Insight
Organic renewal/acquisition which might have happened without any marketing from the overall campaign was separated.
Identified metrics provided the impact of marketing initiatives and separated it from the impact generated by the targeting efforts using the model.
Impact
At an overall campaign level, we got a 3.4% lift whereas targeting contributed to a lift of 2.7%.