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LIVONIA, Mich. -- Retailers that use frequent shopper card (FSC) data to target direct mail programs see a 25.9 percent average increase in incremental sales, according to a new benchmarking study by loyalty automation solutions vendor Valassis.
The report, "Swipe Past Common Benchmarks: How Frequent Shopper Card Data is Pushing Direct Mail Results Way Up," is based on results derived from the Valassis KnowledgeBase, which compiles data from more than 200 direct mail programs that have utilized the frequent shopper card.
The study also found that response rates from FSC direct mail programs averaged 16.8 percent, an increase from the Direct Marketing Association's average response rate of 2.4 percent for packaged goods. Also, redemption rates for FSC direct mail averaged 61 percent higher than clearinghouse averages for health/beauty care, and 83 percent higher for the grocery category, according to Valassis.
"These benchmarks demonstrate how very effective it is to target consumers based upon actual purchase behavior" said Michelle Murad, Valassis v.p. of marketing.
The entire report can be found at www.valassis.com.