readers digest case

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Results of the 1:1 labProof of concept

Readers Digest

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

Companies Profiles

For 60 years, Reader’s Digest Canada is a pre-eminent publisher and direct marketer of magazines, books, music and DVDs. Reader’s Digest and Sélection du Reader’s

•Digest are Canada’s most widely read monthly magazines

•8.1 million readers per month.

Reader’s Digest is an industry leader when it comes to direct marketing initiatives:

•Response rates are typically much greater than the one or two per cent industry average, sometimes reaching double digits.

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

Objectives

Readers’ Digest

•Improve current response rate

• Evaluate and test a new business model based on data-driven communications to improve the current performance of the Readers’ Digest package. To test a unique way to break the silos in the current business model

•Evaluate if a cross-selling approach and a product line to product line using intelligent information can influence positively the consumer's purchasing behaviour.

•To test if the use of variable graphics and variable offers can still influence positively the customer’s behaviour enough to justify reducing the current package

•To test a better way to approach the entire business model

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

1:1 lab test parameters

30,000 records (A/B split)

3 sub-groups:

15 000 – 10 000 – 5 000

•Control Package (24 page CD Music catalogue)

•Full customized package including treasure hunt and sweepstakes contest.

•Product Line to Product Line unique to the individual

•All product categories catalogue.

•Simplified personalized package with contest but no treasure hunt

• Product Line to Product Line unique to the individual

Test

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Selected variables:

CD products – Video – books – children products

Product line @ Product line

Cross-selling multiple products

Past purchasing history

Customer information

Information used according to correlation, customer’s affinity and past purchase history.

Catalogue variation from 16 to 24 pages

Stamps matching products and sequence

Test

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Personalised program

Final Catalogues

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Personalised package

ImagesTextOffersCategoriesColours

Selection by affinity, multiple products

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

Stamps and catalogue matchPersonalised

package

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

Voucher, certificate and promissory note

Personalised package

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

Results

Mail drop of the 2 packages (control and customised) on November 28 (2 days behind schedule)

Response rate: Test 1a: Customised catalogue with full offerProduct line to Product line

CD Music buyers + 27%Video buyers +111%Book Buyers + 45%

Sales increase: +49%

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

Response rate Test 1b:Simplified and customised package Product Line to Product Line

CD Music Buyers + 7%Video buyers + 68%Book buyers + 9%

Sales increase: +16%

Results

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

Response rate: Test 1C: Full customised package

Multiple product offer (Correlation cross-selling)

CD Music Buyers + 35%

Video Buyers + 78%

Book buyers + 83%

Sales increase: +74%

Results

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

Customer Testimonial

“We constantly look to lead the direct marketing industry and the Xerox 1:1 Lab program keeps us at the forefront in Canada and around the world.”

“There is little doubt that customized communications is the future of direct marketing.”

Mathieu Peloquin, Vice President, Marketing Product Lines, Reader’s Digest Canada

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

One to One to Many

www.xerox.com/1to1lab

Thank You!