*This project was originally delivered by Gamma, now part of KatRisk.
Overview
KatRisk* helped a global automobile manufacturer and distributor improve the performance of its direct mail campaigns through geo-marketing and location intelligence. By analysing historic sales data, dealer-level patterns, and neighbourhood profiles, KatRisk identified the households most likely to respond positively to a campaign and provided a targeted address list built around purchase propensity.
The Challenge
The client wanted to improve response rates from direct mail campaigns and move away from broad, untargeted outreach. Previous activity had taken a more scattergun approach, resulting in larger mailing volumes and lower efficiency.
To improve campaign performance, the client needed a more intelligent way to identify households that were most likely to engage with an offer and convert into customers. This required a deeper understanding of historic sales patterns at the dealer level and the geographic and demographic characteristics associated with a stronger response.
The Solution
KatRisk applied geo-marketing analysis to historic sales and customer data to identify the areas and households with the highest potential.
Geographic coordinates were appended to dealer and customer records, making it possible to map sales patterns spatially and analyse customer behaviour by location. Existing customers were then profiled based on factors such as proximity to dealer locations, neighbourhood classification, and relevant demographic and market indicators.
This analysis allowed KatRisk to identify trends, spending patterns, and catchment characteristics associated with stronger sales performance. Using these insights, the team created a targeted address list focused on the neighbourhoods most likely to deliver positive results from a direct mail campaign.
The Results
The geo-marketing approach enabled the client to run a much more focused and efficient campaign.
Key outcomes included:
- a target list 60% smaller than previous untargeted campaigns
- higher redemption rates
- more favourable customer acquisition costs
By replacing broad direct mail activity with data-led targeting, the client was able to improve campaign effectiveness while reducing waste and increasing marketing efficiency.
