The Challenge
The retail marketing group for a major bank came to Corios because they were struggling with numerous issues that were limiting their overall profitability.
Our client seeks to maximize the profitability of their campaigns by optimally aligning offerings and customers. The group executes more than 30 campaigns and hundreds of offers every month and, unfortunately, faced ongoing roadblocks with their ability to manage, track, and optimize a myriad of campaign factors including:
- multiple marketing channels
- cross-product halo effects
- over-time contact strategies
- offer cost
- product sales goals
- margin contribution
- customer response likelihood
The Solution
Corios worked with the marketing team to build a mathematical campaign optimization routine using SAS® Marketing Optimization. This solution allocated a margin-maximizing offer per client for each monthly campaign wave. After just four months of design and implementation, the bank began implementing their first optimized campaigns.
The Results
The optimized campaigns produced a net increase of $22 in gross sales per customer. In the aggregate, the profitable sales growth averaged $3.5 million in monthly incremental campaign-driven income. The bank attributed this income growth directly to increased customer response and the profits from accepted offers. As a result of the solution that Corios put in place, the bank can now execute optimized campaigns on close to 80% of their campaign lead volume, several times per month.
Interested in learning how Corios can help your organization? Contact us here.
