Mass marketing with mass appeal

New Zealand Post segments consumers down to a sub-meshblock level

Over the last few years New Zealand Post has grown its one to one marketing capabilities, by introducing a specialist team and a range of direct, digital and data-based marketing solutions for its customers. Part of its expertise is in providing market segment intelligence to businesses engaging in mass marketing campaigns –such as retailers, banks, insurance companies and other financial industry institutions, telemarketing bureau; and charities; the service is also used by government departments.

Using SAS, we are able to segment the data to offer our customers the ability to more accurately pinpoint new prospects or merchandising catchment areas; to better help [marketing] uncover and pursue potential cross-selling and up-selling opportunities; and to design more effective tailored campaigns.

Susan Needham
Analytics Manager

Using SAS's leading business analytics software, New Zealand Post has recently enhanced these services with the creation of Genius™, a highly sophisticated, purpose-built marketing tool.

While conventional population demographic databases typically segment consumers into geographical units called meshblocks, Genius drills down to either the sub meshblock or individual household level. Where other databases may cluster households within a specified geographic boundary, using high level factors such as family size, ages and income, Genius uses more than 1,300 variables to profile consumers at a granular level.

Publicly available national Census information provides the core data, but the richness of Genius comes from New Zealand Post's annual Lifestyle Survey, which drew more than 200,000 individual consumer responses in 2009, its inaugural year. The database is continuously updated with feeds from a range of commercially available sources such as BNZ MarketView and PropertyIQ, as well as New Zealand Post's own proprietary data.

New Zealand Post engaged SAS solutions and expertise to maximise the application and value of all this data.

Genius offers marketing organisations a very high level of intelligence says New Zealand Post Analytics Manager, Susan Needham. "Using SAS, we are able to segment the data to offer our customers the ability to more accurately pinpoint new prospects or merchandising catchment areas, to better help them uncover and pursue potential cross-selling and up-selling opportunities and to design more effective tailored campaigns."

Using SAS, New Zealand Post separates 1.4 million households into nine profile clusters and 36 different segments, each with a distinct personality, which Susan says gives Genius users a very accurate picture of where and how they can best target a proposition.

“Whereas other market services can display the location of a target segment of, say, 40 or 50 households within a general geographic area, SAS-based Genius can filter to sub-meshblock level and in some instances, down through city, suburb and street to precisely target a single household.”

Genius has been extremely well received by both existing and new users of New Zealand Post's services, and extensions are already being developed.

Challenge

Increasing the revenue from supplying consumer profile segmentation services to New Zealand Post's mass marketing customers.

Solution

Benefits

Able to segment the data to help customers:

  • More accurately pinpoint new prospects or merchandising catchment areas.
  • Help marketing uncover and pursue potential cross-sell and up-sell opportunities.
  • Design more effective tailored campaigns.
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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