CLIENT:
Winery in Washington State, USA
OBJECTIVE:
Improve retention of wine club members, increase sales, and improve marketing decisions by implementing insights-driven marketing initiatives and measuring the effectiveness of each against the business-as-usual strategy.
APPROACH:
- We accessed and analyzed 2 years of sales and member data to establish historical behavior.
- The dataset analyzed includes member characteristics, such as wine preferences & historical purchasing patterns.
- We fit a panel-based logistic regression to the data in order to measure the likelihood of churn.
- Members were segmented into 3 groups: control, email, & phone call. Each represents how a member was contacted about the upcoming new wine allotment.
RESULT:
Campaign effectiveness is evaluated by several key indicators: Incremental Stop Saved, Member Saved, and Yearly Revenue Saved.
The phone call & email strategies outperformed the business-as-usual strategy with the average stop rate being 3.16% combined. It’s estimated that the 10 members saved would result in $3,208 yearly revenue saved.
