Steinmart

Integrating and optimizing for maximum return

Steinmart maintained a substantial database with millions of “Preferred” active customers but its existing direct mail program used simple value-based modeling for list selects and generated little return. The retailer knew there was a more sophisticated way to drive top-line sales, especially among their best customers, who were rapidly declining in value year over year.

We leveraged the retailer’s database to optimize its direct mail channel and integrate it into a broader and more effective cross-channel approach, developing and acting on a better understanding of the customer base, product and offer preferences, and lifestyle motivations. We developed creative and message versions based on customer profiles; format investments varied based on customer value segments — higher opportunity segments received a catalog, while lower opportunity groups received a postcard. All efforts focused on increasing visits and spend per customer with the goal of maintaining or increasing value among the highest potential segments.

Success
Sales increased significantly after the program launched. Average spend increased dramatically and the retailer went from a break-even direct marketing program to $27.6 million via ten promotions the following quarter. The company attributed $86 million in incremental sales to the direct mail optimization program over 18 months.