Most Retail databases contain 30% performing data and 70% underperforming data – defined as data that cost more to mail than the profit generated from the mailing. Recently SellUp began creating hidden asset recovery programs for our clients.

Hidden Asset Program

We began by slicing the database into over 20 different segments based on purchase frequency, recency and recent email responsiveness. We mailed these segments over a 6 week period to determine the best and weakest performers. We also reviewed our best performing campaigns over the past 18 months and created a test grid of multiple creatives of those campaigns to 2 control groups – underperforming buyers and members who had never purchased.

Once we had identified our weakest performing data segments and our best performing campaigns we put together a 5 week mailing program to re-engage those users. The campaign itself generated a positive ROI for the client (although margins were thin it was still profitable) and more importantly we recovered 2.5% of the mailed data as customers – that’s 2,500 buyers per 100,000 in the re-engagement segment – we also re-engaged over 40% of the data form inactive to active (40% unique opens from the campaign).

The Results were better than we expected and we are now going to begin phase 2 of the campaign. We will start re-mailing the campaign to all of the openers who did not make a purchase. I will share the results of this once we complete it.

Lesson learned

There are hidden assets in every database – with proper segmentation and offer testing you can unleash them and find a great new source of profit from old data!

By Allan Levy| October 10th, 2009