Marla Showfer Strategic Marketing

Strategy and Planning to Build Brands and Drive Business
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Levi's Brand Retail Customer Relationship Marketing Program
 
125% ROI and Measured Incremental Purchases Among 71% of Customers
 
Background

Sears manages a database of over 90 million households. We identified over 4 million households that had purchased Levi’s brand product within the previous year to begin building relationships and customer value.

 

Objectives

  • Increase frequency of purchase of Levi’s Brand products among Sears customers
  • Generate incremental purchases per transaction
  • Achieve positive ROI to direct mail

 

Strategy
  • A direct mail relationship marketing program was developed with ongoing communications to targeted, most valuable customers, giving them reason to come to the store and buy incremental product each season
  • Sears house list of most valuable customers was used, segmented by past purchase behavior using recency, frequency, monetary and specific product purchase information
  • List segments were tracked through individual list codes on coupons that were scanned at the register, response analysis was done to determine which lists had the highest response and ROI and to continually improve list performance of future mailings
  • Offers and creative were tested for each mailing to determine which resulted din higher response for continuous improvement
 

Results

  • Average 1.8% response rate, with increased response on each new mailing as learnings were applied
  • 125% average ROI
  • 71% purchasing 2 or more items compared to 42% in control group
  • Average transaction spend increased on each new mailings as learnings were applied