SEGMENTATION

CCG knows how to hook your best customers.

BOTTOM LINE
Client: Einstein Bros® Bagels
Challenge: Identify top customer segments to know how to better target new customers with direct mail and FSI.
Solution: CCG analyzed Einstein’s existing customers using profiling, segmentation, testing and response analysis.
Results: 26% lift in response rate while reducing costs.
You know customer loyalty can drive increased profitability. You also know that first you’ve got to decide which customers you want to keep, and which you’ll throw back. But attracting the right customers in the first place also has to factor into the equation.

Einstein Bros® Bagels did the math and realized it could reduce advertising costs by focusing its resources on bringing in more profitable, frequent diners, and eliminating wasted communications to customer segments with lower potential lifetime value. To help Einstein achieve this goal, CCG developed an acquisition and retention plan that included:

Profiling Einstein’s customers using demographic and lifestyle psychographics.

Testing offers on a segment-based list versus a compiled list, which revealed that using demographic and lifestyle data lifted the response rate by 26 percent.

Focusing resources on best customers, which helped reduce direct mail quantities for a savings of $35,000 in its national direct mail promotion.

CCG’s plan also proved valuable in other marketing arenas, such as targeting newspaper inserts to zones with the highest concentration of potential customers — an effort that produced a 300 percent greater response rate.

Looking to reel in more of your most profitable customers?
Call Dave Rinaldi, VP, New Business,
at 800.525.0313 x104, or send an e-mail to dave.rinaldi@customer.com