by Marty Vrieze, David Freed, Brendan Kitts
They authors describe five years of work developing, analyzing, and running one-to-one marketing systems in a successful cross-channel retailer. The problem is targeting the right customer with the right product. Previously our participating retail chain, Clickthrough, had sent e-mails to opt-in customers featuring products chosen by the marketing department. In 1999 they ran a pilot study in which they replaced the static products with product offers selected by a probabilistic one-to-one recommendation algorithm. The pilot test was very successful. Clickthrough increased profit by 40%, revenue by 38%, and units sold by 61%. The full system was deployed in October 2000 that generated a response rate increase of over 100%. From 2000–2005, the recommendation system has continued to be used each week, and the retailer continues to maintain control groups and report on performance.
It looks like no one has posted a comment yet. You can be the first!
More from 2005
Added over 4 years ago | 00:29:37 | 14856 views
Added over 4 years ago | 00:29:01 | 8408 views
Added over 4 years ago | 00:39:46 | 12563 views
Added over 4 years ago | 00:02:47 | 4201 views