Line 7 Profiling and RFM

The challenge

The New Zealand enterprise of Line 7 was born in 1963 as a manufacturer of wet weather sailing apparel. Since moving into Australasian chain retail for casual fashion and active-wear, Line 7 had been amassing a database of customer details in the form of 'Yacht Club' members, spanning over 6 years.

Managing so many customers collectively can be a difficult task when all customers are not created equal. In order to better facilitate this fundamental relationship and propel a company's growth, insight into different types of customers and their habits is invaluable. Targeted marketing based on analytical RFM profiling of customers ensures focussed and efficient campaigns aiming for the best possible return on the marketing spend.

Datamine was recommended to Line 7 who simply want a clearer understanding of their customers. Line 7 had previously been disappointed with limited redemption results from their database marketing system and were hopeful Datamine could initiate an improvement in the reception of their campaigns by ensuring such endeavours were more appropriately targeted to customers based on their profiles and retail behaviour.

The solution

Delving into Line 7's database of 'Yacht Club' members, Datamine set out to decipher who Line 7 customers really were, building a profile based on their demographic data and quantifying their spending habits in terms of time and spend. Through this RFM profiling initiative, Datamine identified key localities of customer activity and compared their profile against the NZ population, thus providing Line 7 with the capabilities to target their marketing campaigns and identify and profitably manage their key customer relationships.

The results

For Line 7, this initiative has resulted in numerous insights into their customers based on their profiles, purchasing behaviour and relative penetration areound the 15 New Zealand stores. Through the analysis and RFM profiling of their customers, Line 7 have been able to identify the top 10% of their customers and send them Christmas cards in their first targeted marketing campaign based on Datamine's work. Line 7 have several more targeted campaigns planned and anticipate significant improvements in the efficiency and effectiveness of these marketing activities and their use of allocated spend.