Case Study: SGM Distribution grows customer lifetime value and drives 10% campaign response with SAS Business Analytics

Growing customer lifetime value with analytics

SGM Distribution, an Italian consumer-electronics distributor that runs about 70 Marco Polo stores, enrolled 2.2 million customers in its loyalty program, representing roughly 70% of its business. Faced with rapidly growing transactional data, the company needed to analyze buying behavior and identify high-propensity customer segments to make micromarketing more efficient and effective.

Working with Value Lab and using SAS Business Analytics, SGM profiled and clustered customers, reconstructed point-of-sale behavior and built propensity models to drive multichannel microtargeted campaigns. The reengineered segmentation delivered immediate results — the first targeted mailing achieved a 10% redemption rate — and produced lower campaign costs, optimized targeting, higher profitability and improved customer lifetime value.

SGM Distribution

Giancarlo Nicosanti Monterastelli

CEO