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Reduced Costs
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Maintained Demand
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Increased Efficiency
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Increase Profitability
What the client says:​
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'Working with Ginger Black has provided us with precise data analysis, allowing us to implement positive changes in our business. Thanks to their insights, we've achieved cost savings in our mailing plan, which has enabled us to explore new markets and optimise our marketing strategies to get more value from our budget. The team at Ginger Black is highly attentive and consistently focussed on continuous improvement, paying close attention to every detail, from data selection to insert planning'
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Lian Thompson – Marketing Director at Kingstown Associates
The Challenge
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With an intensive mailing plan throughout the year, the client wanted to understand if the mailing selections were justified, or if the mailing volumes had increased too much, meaning that the activity was reduced in profit overall
Mailing a catalogue to existing customers is an expensive business, especially with recently increased Royal Mail postal rates and higher paper costs
It’s imperative that brands ensure that the cost investment isn’t wasted. We know the as a retention exercise, mailings work really well, but to understand exactly who should be mailed without wasting your money is a tricky question to answer
Step One​
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Ginger Black built a predictive propensity model to use the analysis and insight gained from the model and understand how ‘deep’ the business should be mailing per season, or in other words, how many people can be mailed before the client is making a loss?
In order to do this, Ginger Black take all customer data and build a model which ranks individuals from ‘best’ (decile 10) down to those customers least likely to purchase in decile 1.
If everything is correct, the response should decline from customers that are sitting further down the propensity model that they score, creating
a simple curve as demonstrated
Step Two
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Using Cost Per Customer (CPC) as the matrix, GB could then start to understand how deep the client can mail in the propensity model, based on actuals before making a loss. This is split by month to account for seasonal trends.
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In this example, the model shows that the client was making a loss in the lower 2 deciles that they were mailing- deciles 3 and 2.
By understanding the ‘cut-off’ point, we can advise the client at what point their marketing spend will be making a loss
The model is updated and refreshed each month, and once proven out is an incredibly valuable tool at understand how, when and with what to communicate with existing customers. Being able to isolate according to decile also enables clients to ‘talk’ to their customers differently.