Weighty propositions - Mixing DRTV and mail, LA Weight Loss Centers adds

For years, LA Weight Loss Centers and its branded online store have helped consumers reach their weight reduction goals. But the company took a decidedly big approach recently when launching an integrated marketing campaign designed to fatten profits and bulk up market share within the competitive diet industry.

LA Weight Loss’s multichannel campaign leverages national direct response TV spots, search marketing and social media. For the crucial direct mail segment of the campaign, LA Weight Loss enlisted New Jersey–based Edmunds Communications Group to oversee list, printing and fulfillment.

The weight loss center’s April 2011 “Summer Countdown Savings” mail campaign best reflects how the company’s mailers work. The postcards featured before-and-after photos of “Erica,” a customer who lost 46 pounds in 24 weeks.

The back of the postcard featured three coupons offering savings of 25 to 50 percent on weight loss products purchased at LAWeightLoss.com or by calling the company’s telephone number.

The postcards were mailed to nearly 132,000 customers and prospects nationwide.

As for results, Edmunds’ Katrina Samartino notes that the company’s partnership with LA Weight Loss is into its second year. “When we continually see businesses like LA Weight Loss use direct mail campaigns, we know that there is an obvious success behind it,” says Samartino, a senior account executive.

“People want something in their hands, that reminder that comes in the mail.”

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Data Mining and Segmentation - Why It's a Must in Successful Marketing

The Importance of Data Mining and Segmentation in Direct Marketing

Data Mining and Segmentation could help your business remain ahead of your competition.

Increased competition has intensified the need to operate more cost effectively in today’s global marketplace.  Data Mining and Segmentation can be used in understanding consumer research marketing, product analysis, demand and supply analysis, e-commerce, investment trend in stocks & real estates, telecommunications and so on.

Data Mining is the process of using analytic methods to discover meaningful patterns in data that enable organizations to operate in a more cost effective manner.  Historical data is collected and stored and predictive models are created so that the desired patterns can be identified and the undesirable ones avoided.

 Market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments are formed in a way to show the differences between customers within each segment.  Thus, every segment can be addressed with an individually targeted marketing mix.

Why Would My Organization Need Data Mining and Segmentation?

While the most important benefit of data mining is increased profits for business owners, there are a number of other important advantages as well.

·         Better serving customers needs and wants

o   Cross-sell products at a reduced cost by suggesting product bundles and incentives

·         Opportunities for Growth

o   By segmenting markets, you can create your own “niche” and attract additional customers or find “similar” attractive customers in other markets

·         Targeted communication

o   Reduce the cost of multiple and/or mass campaigns

·         Higher Market Shares

o   By optimizing resources and targeting highly attractive market segments, you improve profitability and strengthen your brand 

So How Can Data Mining and Market Segmentation Help? 

By selectively targeting, you can customize which version of the promotion a customer receives (the complete set of offers and products or a smaller more-focused promotion) and optimally regulate the number of times you promote to a customer. As a result, you can help offset continually rising costs and maximize profits by improving the efficiency of a marketing campaign – an important competitive advantage.

Using this process for your customers is both profitable and builds loyalty and customer retention.  Because you will know their patterns, your customers who benefit from such a process in the way of increase response will surely increase your odds of keeping that customer for future mailing because you are giving them what they want.

Data mining can also be helpful to human-resources departments in identifying the characteristics of their most successful employees. Information obtained by highly successful employees, can help HR focus recruiting efforts accordingly.

So, with the use of Data Mining and Segmentation, and utilizing the information that you collect on your customers, you will be able to close the loop and alter your marketing strategy in a way that will allow you to reach more customers.  And, you can create highly-responsive, event-triggered direct marketing programs for your customer base.