Orica Consumer Products - Dulux Trade Marketing (Mates Rates Campaign, 2006)

Objective: To harness the Dulux Trade Customer dynamic segmentation model (CANDI) to identify lapsed customers with "high potential", then implement a multi-dimensional campaign to win back incremental business.

Approach: In 2003, Targetbase Integrated developed a dynamic Trade Customer segmentation model to enable Dulux to focus both Sales and Marketing Activity on areas of greatest opportunity. This has consistently delivered incremental sales to Dulux, but had not yet been used to prioritise customers for winback, so Targetbase developed a multiple contact direct marketing campaign which started with a base mail pack offering targeted lapsed Trade Painters a special price on ALL Dulux paint purchased over a 3 month period, followed by monthly follow-up communications.

Painters were split into 2 groups for follow-up purposes "must respond to opt in" and "automatically registered as opted in" to test the effectiveness of using SMS as a follow-up tool compared to mail or phone follow-up. Customer activity was tracked based on transactions made on each customer's account and follow-up streamed accordingly.

The follow-up communications were used to promote a "free brush" for every $200.00 in Dulux paint purchased over the second campaign month and a "free ladder" offer over the third campaign month.

Results: During the campaign period 23% of targeted Trade Painters were activated generating a 1,548% ROI from Dulux purchases made over the campaign period. This dramatically increased to a massive 2,857% ROI in the 6 months from campaign commencement.

It confirmed that the multiple communication approach to a segmented group of high opportunity lapsed customers is an exceptionally powerful tool for Dulux Consumer Products to not only gain incremental revenue, but actually win back lapsed customers.

This campaign is now an on-going activity amongst the Trade Painter lapsed customer base. The campaign also demonstrated that SMS was not a more cost effective tool to communicate the second month and third month offers, compared to mail or phone call.

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