Case Study #1

Client relies strongly on customer demographic evaluation and data hygiene services to formulate and revise strategic marketing plans. As client's customer database continues to grow to over 35 million records, they are challenged to reduce costs while staying within a limited budget. To provide the depth of demographic evaluation the client desires would cost over $1,000,000. To provide quality hygiene services would cost $290,000. Client requested Source One's COST REDUCTION INITIATIVE to uncover a cost-effective way to obtain the above stated services at dramatically lower rates. Currently, 2 suppliers were providing the services stated

The Process

As Source One conducted the SPEND ANALYSIS, we placed heavy emphasis on uncovering the precise services needed to deliver information that would augment marketing decisions. While researching alternate suppliers, Source One looked for companies producing high quality service and a sincere commitment to help our client meet budget parameters.

Suppliers participated in a test run of customer information related to specific data elements to determine the quality of their results, communication and reporting capabilities. The test also helped determine the scope of services that were mandatory to the marketing plan.

The Result

Based on Source One’s analysis, research, testing and evaluation, Client agreed to award business to a new supplier. This supplier was able to perform customer demographic services for all 35,000,000 records for under $200,000, versus the $1,000,000 projection.

Negotiations for the data hygiene service for client's monthly mailings produced $88,000 or 30.5% savings of the projected annual spend of $290,000.