Increase cost effectiveness through mailing optimisation

prudsys > Solutions > Mail order business > Mailing optimisation

The posting of mails and catalogues is a daily part of the mail order business An accurate analysis of customer data before a campaign practically pays for itself provided that businesses can provide accurate answers to the following questions:

Which of my customer should be sent the new catalogue or mail?

How many customers should I mail and when?

Which mailing is unprofitable because the addressee will not make a purchase?

This is where mailing optimisation plays an important role. Mailing optimisation is now an indispensable part of the very competitive mail order business. Until recently mailing selections were often based on experience, feel and simple customer value models. For several decades large mail order houses have successfully used mathematical, statistical processing (known commonly as data mining) to calculate customer response rates.

Mailing optimisation by data mining means:

• The response rate of each individual customer is calculated by data mining. The procedures used are designed to make the best possible forecasts on the basis of the available customer data.
• The mailing selection is optimised on this basis so that, for example, the mail order company only writes to the most lucrative customers. On the other hand, the company can decide to optimise its ROI (Return on Investment) and write only to those customer who are profitable.

prudsys AG with years of experience and expertise in this sector goes one step further: We have recently taken the optimisation of mailing selections one step further to do things such as identifying 20% of the customers who will not buy products as the result of a mailing action. For the retailer this means: 20% lower mailing costs and a doubling of the returns from mailing.

prudsys AG offers its own software solutions for mailing optimisation. These solutions are based on powerful algorithms designed specifically for analysing large quantities of data. The prudsys RDE | Scoring module has self-learning, real-time customer profiling functions and functions for constantly updating the mining models. This real-time add-on will provide an up-to-the-minute picture of customer behavior and thereby minimises the expense of continuously updating the models manually.