Case Study: Large Home Furnishing Retailing Company boosts direct mail ROI with RR Donnelley discount optimization testing

Discount Optimization Testing Increases Direct Mail ROI

RR Donnelley worked with a Large Home Furnishing Retailing Company that regularly mailed discount coupons to its house file, but didn’t know whether its offers were truly optimized to drive in-store traffic and purchases without eroding profit. The retailer needed a better way to determine the right discount levels across different purchase tiers while keeping direct mail costs under control.

RR Donnelley recommended a six-tiered discount matrix test using its ProteusJet™ variable inkjet color imaging platform, allowing the company to test 28 discount offers within the same mailing. The results were significant: revenues increased by 68%—more than $1 million—while the discount rate rose only 2.8 basis points, and program ROI nearly doubled from 25.3% to 50.2%.