Case Study:

Retail Marketing Efficiency

All American Hearing

The Client

All American Hearing logo

All American Hearing (AAH) is a leading seller of hearing aids, with over 300 locations around the United States. They grew very quickly in a relatively short time, going to market through multiple channels including direct mail and needed help improving their retail marketing efficiency.

“In the first two months of program implementation, we have seen our highest ever call volumes coming from direct mail, and a significant decrease in cost per opportunity.”
– Eric Feld, CFO, All American Hearing

The Challenge

All American Hearing Lityx sales resultsAs AAH expanded, marketing challenges and competition increased. They began to see their sales and response rates flatten, and cost per sale was trending higher.

Our initial challenge was to help AAH better leverage their customer and prospect data to improve direct mail programs through modeling and optimization. Given declining direct mail response rates, our goal was to use data-based approaches to improve targeting, increase inbound calls, and ultimately drive incremental revenue. LityxIQ enabled us to accomplish this goal and implement a focused program into market quickly.

The Solution

Prior to engaging with Lityx, AAH had limited reporting and BI capabilities, and had not performed any advanced analytics capabilities such as predictive modeling. Using the LityxIQ Data Manager, we built an analytic data mart covering mail history, response, and other external data from a variety of sources.

Using InsightIQ, we delivered initial insights on how prospect information drives direct mail response behavior. Interesting correlations involving age, distance, and credit card usage were among those that provided a new picture of their prospect base.

With PredictIQ, a model was developed that predicted who their best prospects would be. The model was first tested in-market in a sample of locations over a month-long period. The test results were very strong, and the model was soon put into production.

Model implementation is easy with PredictIQ. Prospect lists are scored on a regular basis using point-and-click Scoring Jobs. Scores then feed into campaign optimization seamlessly.

OptimizeIQ is used to optimize direct mail campaigns on a weekly basis. It ensures that campaigns will realize maximum response rate potential, while accounting for constraints such as mail quantities at the store level, resting rules, and cross-decile sampling. The optimized plan is sent weekly to AAH’s mail vendors for execution, with approximately 600,000 mail pieces processed each month.

The Results

  • Incremental annualized revenue over $4MM from direct mail channel

  • Over 50% reduction in cost per opportunity in the channel
  • Achieved over 18x ROI on the analytics investment in LityxIQ

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