Direct mail targeted with frequent shopper card data can increase incremental sales by an average of 25.9 percent.
This was a key claim from the first documented benchmarks published by direct mail firm Valassis in a study called “Swipe Past Common Benchmarks: How Frequent Shopper Card Data is Pushing Direct Mail Results Way Up.” The benchmarks demonstrate the effectiveness of targeting consumers based on actual purchase behavior.
All benchmark measurements are based on results derived from more than 300 frequent shopper card direct mail programs that Valassis has executed and analyzed over the last five years. These benchmarks include increased percentages in incremental sales, response rates and redemption rates
Valassis is the leading supplier of co-branded direct mail targeted with frequent shopper data, with direct access to frequent shopper data for nearly 50 million households across several leading retailers.
The company has created a database called the Valassis KnowledgeBase that compiles data from direct mail programs that have used the frequent shopper card. This data records that response rates from frequent shopper card direct mail programs averaged 16.8 percent, an increase from the Direct Marketing Association’s average response rate of 2.4 percent for packaged goods.
Also, redemption rates for frequent shopper card direct mail averaged 61 percent higher than clearing house averages for health/beauty care, and 83 percent higher for the grocery category.
These benchmarks are used to answer tactical questions regarding target audience, timing, discount and format, offering recommendations for both retention audiences and acquisition targets, Valassis said.
Frequent shopper card data allows brands to identify and reach individual households with relevant offers, based on their actual recorded purchase behavior such as response rates, spending, units, transactions, repeat purchases and conversion.