The client is a provider of direct marketing, database marketing and reference products and services. Several years ago, the client was acquired by a global leader of credit-related and direct and database marketing services.
In a highly competitive industry, the client needed to grow, serve and defend its small business customer market. It was vital to determine which customer segments were most profitable, and gain understanding of their business needs. How could the client employ finite marketing resources to achieve significant gains? Where should its resources be allocated for maximum return on investment?
Kannon was retained to develop a quantitative customer segmentation and a means of profiling the most profitable small business customers to enhance the success of outbound promotional efforts. Through segmentation, marketplace mapping and prioritization, Kannon assessed external perceptions and identified key customer drivers to guide the development of effective product offerings, promotional messages and channel marketing programs. Through this in-depth process, Kannon identified specific factors that drive the purchasing decisions of small businesses.
Acting on Kannon’s findings, the client was able to recognize and focus on the most profitable small business segments and reach those prospects with 50% accuracy (vs. 20% achieved previously). Within the first six months, promotion response increased on average 20%, conversion rates rose 10% to 12%, and the value of the average order increased by 10%.
Targeting a more “savvy” results-oriented small business customer also affected the client’s operations. The inbound ordering/customer service center experienced a reduction in average duration of telephone interactions with customers by 25 to 33% – from 15-20 minutes down to 10-15 minutes. This enabled the client to handle more inquiries per day without increasing call center resources.
“The hands-on involvement of its principals, their practitioner and consulting experience, their structured methodology and their emphasis on actual implementation make Kannon Consulting an unusually effective business partner,” said then-Vice President of Marketing for the client’s Information Services division. “For companies seeking to understand their markets, maximize their efficiency, boost response and conversion rates, and align resources appropriately to drive optimum results, Kannon Consulting is a tremendous choice. They deliver high value, built-in accountability, objective viewpoints, and fully actionable recommendations. Their intellectual assets are truly equal or superior to those of larger firms … and unlike most larger firms, Kannon’s top talent is personally involved on a day-to-day basis.”