Publishers Clearing House’s Marketing Secret: Customize Offers with Real-Time Consumer Profitability Data
Scoring New Mail Buyers
This data allows Publishers Clearing House to make informed decisions regarding which prospects or new customers receive which offers. For example, in the past, Publisher's Clearing House would not send a follow-up offer to new mail customers until payment from their first orders had been received and processed. But getting the second offer to new mail buyers quickly is key to securing them as repeat customers. Waiting to receive payment for the first order and process it was costing Publishers Clearing House as much six to 12 weeks, which made the remarketing effort "anemic."
With the behavioral profitability data, Publishers Clearing House is able predict which new buyers will be most likely to follow through on the transaction. These buyers can be sent a follow-up offer quickly, without waiting for payment. The follow-up cycle for that group is now only three weeks, and Publisher's Clearing House said during the presentation that this has significantly increased order response and future value.
Applying It to the Web in Real Time
Publishers Clearing House uses this same data in real time on the Web. Traditionally, payment rates for online orders has been "abysmal," according to Bergendorff. Incorporating the real-time profitability data allows Publishers Clearing House to customize offers visitors see on its website after they have registered for the contest, game or site they're visiting. Bergendorff says, "The online lead-scoring program has really been a quantum leap forward for our e-commerce business."
"The initial numeric scores are sent to Publishers Clearing House within sub-seconds of each consumer's initial contest registration and are used to determine which offer(s) the consumers will see on their website," says Checco. Visitors with the highest predicted profitability will see offers for Publishers Clearing House merchandise. The second highest group will see magazine subscription offers, and the lowest scoring group will see offers from Publishers Clearing House partners and third parties. "The scores are maintained on Publishers Clearing House's database," Checco continues, "and used to help determine the future promotion path for each consumer who opts in to Publisher's Clearing House email promotions."