Saga boosts direct mail effect with predictive analytics

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By: Wise Marketer Staff |

Posted on January 20, 2005

Saga boosts direct mail effect with predictive analytics

Predictive analytics software has helped the UK-based holiday provider Saga achieve significant cost savings as well as a revenue increase of some £1 million, according to software solution provider SPSS.

After implementing SPSS's PredictiveMarketing predictive analytics solution, Saga says it has substantially increased the effectiveness of its direct mailings, achieving full ROI in just two campaigns. Saga specialises in providing holidays and financial services products for people aged fifty and over. It is one of the largest direct mail organisations in the UK. It targets six million households nationwide and generates an annual turnover of £300 million.

Mail costs down The system has enabled Saga Holidays' marketing department to significantly reduce mail costs by better targeting existing campaigns. At the same time, it has generated additional revenue by marketing to new and promising customers that were not usually targeted, enabling the company to continue to grow the size of its business.

Tip of the iceberg According to James Gambling, database marketing manager at Saga Holidays: "In ten days, we had managed to install the software on our existing database and identify 'high responder' customer segments based on previously hidden information. The results we achieved not only confirmed what had taken years of experience to understand, but also gave us a fresh insight into other segments of the database, providing us with even more knowledge of our customers' needs."

Gambling says the firm is very impressed by how easy the software has been to use, and with the speed of the results provided by it. "So far, we have only just touched the tip of the iceberg. However, as a result of it, we are now reviewing our marketing procedures and improving the knowledge of our target markets. In the future we will take a much more customer-focused approach to marketing our products."

For additional information: ·  Visit SPSS at ·  Visit Saga at