ICS Achieves a 41% Sales Improvement on Franchise Prospect Data
ICS Product/Service Area: Data Enhancement, Testing and Analytics
An ICS client - a national franchise - has had a long-standing relationship with a single data provider for prospecting direct mail. While this provider offers significant data volume, it is not this industry's largest and does not have data enhancement or analytic capabilities. ICS proposed that we could help the client improve conversion rates through enhanced data and analytics. We suggested a test structure, including sales conversion metrics.
ICS recommended testing in two key areas:
- Enhancing the Current Prospect Data - With targeted customers' demographics such as household income, age, etc. (Note: The current data provider is unable to conduct demographic data enhancements.)
- Distance to the Franchise (Geographic Targeting) - ICS completed an advanced analytics study in 2012 that provided powerful insight on lead purchasing and incorporated this for the test as well.
We created three testing segments:
- Segment One: Current Prospect Data Source - Accounted for 80% of the data volume
- Segment Two: Testing Demographic Enhancements - Accounted for 10% of the data volume
- Segment Three: Testing a Combination of Demographic Enhancements and "Distance to the Franchise" - Accounted for 10% of the data volume
At the conclusion of each of these three testing segments, ICS performed a post program Sales Match to quantify results. We also reviewed response rates month by month over a four month period.
Test Segment Three with the combination of demographic enhancements plus geographic targeting was the clear winner with a 41% conversion rate improvement on the current data (even as a supplemental data source).
Based on our findings, our client will achieve even stronger results due to the enhanced prospect data and the larger volumn of monthly leads.
We also recommended a cost-effective Lead-Scoring Analytical Model. This analysis will look at additional household demographics (including priority zip codes) to strategically select only the most productive leads. While the test results achieved an impressive 41% conversion rate, we anticipate even higher conversion rates from the advanced analytical model.