Case Study: Using Analytics to Identify Business Opportunities

Today's case study comes to us from Sigma Marketing Group, a full-service database marketing firm. They've highlighted work they've done for their client, Greater Rochester Enterprise (GRE) helping them with regional economic development programs. I like this one because it incorporates analytics and cleverly uses data to generate a successful program.

The Challenge
GRE is a regional economic development organization supported by a team of private and public sector leaders dedicated to improving economic performance in the Rochester, New York Finger Lakes region. Its primary goals are to:

• retain and expand existing business;
• professionally market the region as a competitive, vibrant, and high-profile place for business location and growth;
• support business attraction, expansion, entrepreneurship, and innovation by collaborating with local businesses, universities, not-for-profit organizations, and government leaders.

Because of Rochester’s rich history of thriving high-tech companies, GRE determined that the region was best suited to attract three types of industries:

• Fuel Cell
• Biotechnology
• Optics

To that end, they approached SIGMA Marketing Group with the following challenge:
Focusing on these three industries, help us identify companies across the country that are likely to:

• Expand operations
• Consider Rochester as a potential site for expansion

The Breakthrough
SIGMA developed an analytic-based direct marketing program with the following methodology:

• The Lists: Build search criteria, customize lists from a variety of sources, then target decision-makers in the three industries across the country.
• The Mailer: Create a cost-effective, compelling direct mail piece that includes specific information on why the company should consider Rochester for its expansion needs. Specifically, SIGMA created bi-fold brochures that were customized for each industry.
• The Data: Include an attractive offer in the piece that would entice the recipient to:

• Log onto a new GRE Web page
• Provide self-reported data via a simple online questionnaire
• The Offer: For those recipients willing to go to the site, GRE provided them with:
• A free S.W.O.T. analysis (Strengths, Weaknesses, Opportunities, and Threats) written by a leader in the recipient’s industry.
• A link to a website that allowed recipients to choose amongst several business-related gifts or charitable contributions.

• The Analytical Model: SIGMA then created a model that analyzed the results into three categories:

• Alert: These are highly qualified prospects who should be called immediately.
• Semi-Alert: These are qualified prospects who should be called within 30 days.
• Future Contact: These prospects are not qualified for immediate follow-up, but should be contacted on an as-needed basis.

The Win
“SIGMA designed an effective direct mail campaign that yielded double our projected response. In addition, the self-reported data incorporated in this campaign delivered insightful quantitative research that has helped us further refine our marketing efforts.”