Reseller uses analytics to leverage marketing funds and raise response rates 3x and revenue 7x

Client

A leading national reseller of hardware and software

Challenge

Our client receives substantial marketing funds from its principal, a major software company, and needs to show these funds are being used effectively to drive sales of its principal’s software products. Since our client’s marketing emphasizes solution sales combining hardware and software, and since the contributed funds are used in these combined campaigns, demonstrating a return on its principal’s contribution is not clear cut.

Loyalty Builders solution

The principal was especially interested in sales of database software, so a bundle offer was created that combined Hewlett-Packard hardware servers with SQL Server database software. Loyalty Builders used predictive analytics to identify potential buyers for this bundle. A large control group of otherwise similar customers was also identified but who did not get the campaign.

Results

The campaign was a big success, as shown in the table below.

Group	#	Server purchases	% purchasing	Software purchases	% purchasing	Hardware revenue	Software revenue
Targeted	9290	2544	27%	1106	12%	$24,672,222	$7,424,003
Control	5629	517	9%	201	4%	$5,645,640	$1,154,281

Targeted customers purchased at a rate 3x greater than those in the control group. The overall response rate was excellent, with considerable revenue generated. Both our client and their principal were happy with the results.