Posts Tagged ‘Marketing ROI

01
Sep
08

Case Study: How Harbor Sweets uses customer data effectively

Harbor Sweets is a Massachusetts-based gourmet chocolate company that offers a variety of premium sweets. In 1973, the company emerged from humble beginnings when Ben Strohecker set out to create the “best piece of candy in the world.” The result was Sweet Sloops, a sailboat shaped piece of almond butter crunch, covered in white chocolate dipped in dark chocolate and crushed pecans. Over the years, the company grew to feature additional candy lines and retail outlets across the U.S. Harbor Sweets also added a significant mail-order catalog division.

Their catalog program was successful in delivering sales during key holiday buying seasons, but the company also wanted to ensure that holiday campaign mailings – the main driver of catalog business – were maximizing sales.Harbor Sweets needed a solution that would efficiently turn existing customer data into actionable next steps. Essentially, Harbor Sweets wanted to find out if removing a single mailing to “active customers” from the holiday mail schedule – which included mailings every month from September through December – would conserve marketing resources, while refraining from negatively impacting revenue or overall response rates.

Harbor Sweets conducted a suppression test, assessing how effective the holiday campaign mailings had been at driving sales. Harbor Sweets mailed the catalog to everyone in December and ran a suppression test for September, October and November. The results were surprising.Harbor Sweets was actually hurting sales by mailing too many catalogs to customers during the holiday season. The results also found that the cadence for the catalogs could be reduced to three, while still achieving similar results.

Additionally, Harbor Sweets learned firsthand that it is imperative to be open to analyzing data and customer behavior in new ways.The more information available on existing customers, the more effective the software is in its results, whether it is predicting customer’s next steps or customers at risk of defection.

The results allowed Harbor Sweet to develop a long-term marketing process for the future. The revenue saved by removing one mailing is now applied to another mailing during non-peak times to provide customers with a more effectively targeted, timely catalog.

Source: DM review




At Cequity, we believe customer intelligence will be the biggest competitive advantage enterprises will have in the next decade or two. Successful enterprises of tomorrow will be the ones who can organize and leverage this information at speed to optimize their marketing performance, increase accountability, improve profit and deliver growth. Cequity insights will bring to you trends and insights in this area and it’s our way of sharing best practices so as to help you accelerate this culture and thinking in your organization.
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