Although a specialty retail company was seeing strong growth in online customers, there was disagreement across management about the number of customers who shopped in-store, and then added online shopping as well.
We analyzed pre-post purchase patterns of in-store customers who decided to purchase online as well, and identified that approximately 75% of their online purchases were incremental. Next, we developed a predictive model to forecast which in-store-only customers were likely to begin also shopping online. After completing this model, the retailer implemented a three-month campaign involving both direct mail and email, aimed at convincing in-store-only customers to begin shopping online.
Approximately 35% of the targeted customers began shopping online, generating over $18M of incremental revenue. In addition, we determined that multi-channel customers were more likely to be retained long-term.
August 21, 2018
Project Briefs, Smart Data