THOMAS Cook Direct has shaved 23% off its marketing budget by refocusing direct marketing activities on customers likely to bring in the most revenue.
In the past the company has taken a scattergun approach, sending mail shots to every customer on its database. After analysing customers’ behaviour and lifestyles it has now identified what it describes as “hot prospects” – customers likely to book holidays on a regular basis – to allow it to target direct mail in the most efficient way.
“Hot prospects represent just 6% of Thomas Cook Direct’s customer base. But by sending them information designed to meet their specific needs and interests the company has increased revenue from this group by 18% in just nine months,” said head of sales and marketing Mandy Harker.
The remaining 94% of customers are categorised as either warm or cold prospects.
People who fit into these categories are not being ignored, but communications sent to them tend to be low cost.