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Consumer
Westlake Internet Training
Used RFM value analysis and first-party data to transform course catalog mailings into a profitable channel
Challenge
Westlake Internet Training, an Arlington, Virginia-based provider of web development courses in HTML, JavaScript, PHP, CSS, and other technologies, faced a critical profitability issue with its direct mail marketing program. The company’s course catalog mailings were generating negative returns, with marketing spend consistently exceeding the revenue produced from new enrollments. The blanket approach of mailing expensive catalogs to the entire customer database was financially unsustainable, threatening the viability of the company’s primary customer acquisition and retention channel.
Solution
I implemented a data-driven, multichannel course catalog marketing solution using first-party data and RFM (Recency, Frequency, Monetary) value analysis⧉ to identify and prioritize the company’s most valuable customers. By analyzing historical enrollment and purchase behavior, I segmented the customer base into distinct groups based on students’ course purchase histories. The approach reserved expensive catalog mailings exclusively for the top 20% of customers as indicated by the calculated RFM scores. Mid-tier segments received lower-cost postcards and email communications, while customers who had not enrolled in a course within the previous three years were removed from active marketing. This tiered communication strategy aligned marketing investment with customer value.
Results
The first execution of the new marketing solution using RFM analysis generated a 5-to-1 return on spend which was a dramatic reversal from the previous loss-generating campaigns. By concentrating resources on high-value customers and using more cost-effective channels for lower-tier segments, WestLake Internet Training transformed its course catalog marketing program from a financial drain into a profitable growth engine while maintaining engagement across its active customer base.
