Wine Club Churn Reduction
CLIENT:
Winery located in Washington, USA
OBJECTIVE:

Test the effectiveness of several marketing efforts in reducing wine club churn against a business-as-usual control group.

APPROACH:
  • Mather ingested several years of sales and wine club history directly from OrderPort.
  • A statistical model was estimated to segment current wine club members for level of churn risk.
  • Mather worked with the winery to design high quality marketing pieces highlighting the value of the club membership.
  • Statistically representative test groups were identified for use in testing the effectiveness of several communication channels (email, direct mail, email+direct mail combination and phone).
RESULT:

The combined stop rate of those that received one of the incremental communications was 1.45% compared to the business-as-usual control group stop rate of 2.75%. The difference is a reduction in churn of 47.2%.

 

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