Analytics transforms data for 30 percent revenue growth

Canada Post’s accurate address information, combined with partner data, empowers customers

Where most people see a database, Alexis Zamkow sees customer value.

Her background in interactive marketing and experience in customer relationship management gave Zamkow the unique skill set needed to turn an underutilized asset into a bottom-line impact.

The asset? Canada’s most accurate, up-to-date database of mailing addresses. Canada Post, the country’s national postal distributor, tapped Zamkow to run an internal targeting and analytics team to support direct marketing campaigns. It’s evolved into a product line of its own, offering everything from targeted mailing lists through turnkey database solutions.

We’ve had 30% year-over-year growth in revenue for address data products. And that is unheard of.
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Alexis Zamkow
General Manager, Targeting and Data Services

“We’re the address experts in Canada and we help businesses convert that into competitive advantage,” Zamkow says. “That data originates in our operational systems, from every delivery point in Canada. Then we add third-part data from partners: business data, retail data, demographic data, their preferred channel of communication. That information is added to our addresses and we convert that into a list, a license, a targeting analysis or even potentially a professional service.”

James Smith, director of digital asset for Canada Post, says 70 to 80 input files – go into the repository every month.

“There are about 25 products that we take every month from that,” Smith said.

The biggest challenge is interpreting, analyzing and aggregating that data effectively. “Our source systems are not designed for massive data analysis. They’re designed for mail and parcel delivery logistics,” says Zamkow. “Traditionally, Canada Post has not had a great deal of experience with things like advanced consumer modeling and segmentation.”

As a result of an extensive RFP process, Canada Post turned to SAS to bolster its product offerings. SAS’ Data Management solution helps Canada Post use analytics to transform those discrete data sets into customer insight and a host of products. The impact on time-to-market for new products has been astonishing.

“In the data business, you have to move quickly,” Zamkow says. “Our speed to market has increased fivefold. We used to take a lot of time to massage data, manage it manually. Now, we’ve got our data structured, cleaned and ready to transform in weeks rather than months.

“SAS works on site and understands the nuances of our data, and works seamlessly with our analysts.”

There’s been a corresponding impact on the bottom line. “We’ve had 30 percent year-over-year growth for our strategic address data products. And that is unheard of,” she says. “In the past, we’d run at 5 to 7 percent growth.”

And there’s room for more growth, Zamkow believes.

“Addresses are the future of communications and marketing, and we know that accurate addresses in digital and physical states, are the keys to great customer retention,” she says. “We are expanding our offerings based on our strengths. Our strategy is, the closer to the core mailing business a product or service is, the greater our ownership in delivering it. Farther from the core, we enable other companies with great addressing.”

It’s critical that Canada Post continue to expand that revenue stream, Zamkow adds. “With the continuing decline of mail, the digital side is becoming more important. “It’s a strategic mandate for us to leverage our address data to drive new growth opportunities in digital and e-commerce.”

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Challenge

Developing new services from existing assets as legacy revenue streams diminish.

Solution

SAS® Data Management

Benefits

Speed to market has increased fivefold with a corresponding 30% increase in revenue on address data products.

The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.

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