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Australian NaturalCare boosts sales and customer retention with SAS®

Online retailer transforms 24 years of customer history into valuable source of insights  

SYDNEY, Australia  (08 Aug 2013)  – Australian NaturalCare Products, the leading online vitamin retailer in the country is using SAS to dramatically improve cross-selling rates and reduce customer churn.

Following an earlier move to online selling, Australian NaturalCare (ANC) had a wealth of information with more than 24 years' worth of customer and transactional data, however found it difficult to extract value from that data.

ANC has upwards of 120,000 active customers who have made a purchase within the previous 12 months, according to Maurice Cicero, the company's head of eCommerce. He adds, "But we didn't use any analytics, so we couldn't easily look at the buying trends of our products."

ANC's previous attempts to gain value from its data had rested with Access databases and spreadsheets using multiple data sources, meaning staff had different versions of the data on their desktops and no single source of the truth.

Maurice Cicero says a key capability resulting from the adoption of the SAS solution, "Has been identifying the product buying cycle across the life cycle of the customer. When a customer buys a product we can use SAS analytics to identify likely future trends associated with that product and use the information to suggest a related offer. We can now make cross-sell and up-sell offers with a high level of accuracy that wasn't previously possible."

One of the first cross-sell campaigns to which ANC applied SAS recorded a 40 per cent increase in the conversion rate.

Similarly, customer churn has been reduced thanks to proactive retention campaigns that are delivering outstanding results. Maurice Cicero gives as an example, "In one particular campaign, we predicted 1,065 customers were likely to leave the program so we built a retention incentive campaign. Of the first 394 we contacted, 90 per cent took up the incentive to stay with the program".

Adopting SAS has also included replacing all ANC's previous reporting routines. There is now one set of reports used across the organisation and everyone is looking at the same data. Maurice Cicero says this has translated into resource savings. "Previously, it took a couple of days to produce end-of-month reports but it's now automated and almost immediate."

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