Premium dog food manufacturers McAdams came to us with a classic FMCG dilemma. How to divide marketing spend between acquisition drives vs loyalty programmes, for maximum bottom-line impact?
It’s a challenge that marketing managers have faced long before Kit Kat first told us to have a break in the late 1950’s.
The answer in this case came not from some futuristic application of machine learning, or guided AI. In fact, McAdams were already in possession of the answer, right there in the logs of their webshop. A little help from the vuzo team was all they needed to tease it out.
Performing RFM (recency, frequency, monetary) analysis on their historical customer database, we built-out new segments by customer preference and dog breed. By matching like-for-like, we enabled McAdams to attract new audiences online at vastly reduced cost.
McAdams are fortunate to enjoy high customer loyalty due to the extreme lengths they go to in producing an entirely natural, grain-free food with an uncompromising ingredients list that includes free-range chicken, a world first.
And since their loyalty programme came at a fixed cost per customer, it became trivial to establish the optimal allocation of marketing spend on acquisition vs loyalty.