Using data from frequent shopper programs to target direct-mail offers can boost sales nearly 26%, according to research from direct-mail and FSI giant Valassis.
The retail marketing firm studied 300 direct-mail campaigns that it has run in the past five years; promotions that used frequent-shopper card data to tailor the offers.
The study also tracked response rates and redemption rates as benchmarks alongside incremental sales.
Response rates for programs that used card data averaged 16.8%, significantly more than the 2.4% rate that the Direct Marketing Association tracks for packaged goods offers. Redemption rates were 61% higher than clearinghouse averages for health/beauty care, and 83% higher for the grocery category, according to Valassis.
“These benchmarks are quite impressive because they demonstrate how very effective it is to target consumers based upon actual purchase behavior” said Michelle Murad, Valassis vice president of marketing, in a statement.
The report, “Swipe Past Common Benchmarks: How Frequent Shopper Card Data is Pushing Direct Mail Results Way Up,” was released earlier this month.