The Company
New York, New York
Promotions.com specializes in developing solutions that make promotions work more effectively on the Internet. Headquartered in New York, the company is the leading provider of Internet marketing products and services.

Goal
Stone Analytics performed a study for Promotions.com to review its membership base and the traffic patterns on its web site, for the purpose of suggesting ways to improve click-thru rates among its visitors. Because its membership base and traffic on its web site continued to grow rapidly, Promotions.com wanted to provide its customers with online promotions that had the maximum return while at the same time providing its members with offers they would welcome. To accomplish both tasks simultaneously required a sophisticated statistical analysis.

Approach
Promotions.com supplied Stone with a secure and privatized sample of its member list, a database consisting of 1.2 million names, and their characteristics. Individual identities were abstracted and data was used in the form of characterized individuals. In addition, the company supplied Stone with a relevant sample of activity from its web site for a total of 50 million records.

Results
Using this information, Stone analysts performed a series of cluster analyses to gain a better understanding of Promotions.com members, both their demographic characteristics and their site behavior. Through these efforts, 11 distinct categories of individuals were identified. This more sophisticated method of grouping customers according to actual behavior and characteristics provided a significant improvement in the ability of Promotions.com to simultaneously serve its members and its customers. The interaction of these data-determined categorizations allows Promotions.com to treat people according to their actual behavior, and adjust interactions with customers continuously.

Implementation
As a result of this analysis, Promotions.com was better able to target its promotions to specific groups, thereby substantially increasing the click-thru rates of its campaigns and retention of its members.