STORES Magazine - January 2010 - (Page 40)

NUTS AND BOLTS / CRM Data-driven Deals Predictive modeling helping Stein Mart connect with customers BY FIONA SOLTES “We have to be efficient with direct mail and announcing sale events, but also in reacting to customer behavior.” – Glori Katz, Stein Mart M any retailers believe they have a good handle on who their customers are. But do they know whether a percentage discount or certain dollars off is more motivational for each one? Do they know whether those customers have certain lifestyle attributes that make them more or less likely to be elite or “best” shoppers? “It’s not unusual for retailers to have a lot of data,” says Ed Higdon, executive vice president, business intelligence and consumer insights for data-driven marketing group Integrative Logic. “But the most common conversation I have with prospects is something like this: “Ed, I’m sitting on a mountain of data and I don’t know what to do with it.’” Consider the case of Stein Mart. The off-price retailer had long been collecting information on its shoppers: What it 40 STORES / JANUARY 2010 didn’t have, however, was a highly developed way of relating to them. Regular mailings, which followed an events calendar, were primarily delineated according to spend. “If we felt we needed more impact, it was basically just increasing quantity,” says Donna Mills, Stein Mart’s director of CRM. “I think that’s the kind of mailing a lot of retailers do. It’s not particularly granular to the data or particularly targeted, but it does go to your highest- spending customers.” Enter Integrative Logic, whose client roster includes Saks, Kohl’s, Fashion Bug, Mikasa and Lane Bryant. Suddenly, it became about understanding customers from both behavioral and lifestyle perspectives; cultivating an “elite” customer list as well as alluring a 30,000-member “near-elite” roster; and being able to identify which customers would be “lifted” by direct mail campaigns through predictive modeling. It WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - January 2010

STORES Magazine - January 2010
Editor's Page
President’s Page
Retail People
CEO Profile
20 Ideas Worth Stealing
Digital Coupons
Customer Loyalty
Labor Scheduling
Data Management
Human Resources
Retail Fraud
Loeb Retail Letter
ARTS Update
NRF News
Point of View
Retail Industry Calendar
End Cap
Global Powers of Retailing

STORES Magazine - January 2010