Optimizing customer mail streams at Fingerhut

Citation
D. Campbell et al., Optimizing customer mail streams at Fingerhut, INTERFACES, 31(1), 2001, pp. 77-90
Language
INGLESE
art.tipo
Article
Categorie Soggetti
Management
Journal title
INTERFACES
ISSN journal
0092-2102 → ACNP
Volume
31
Issue
1
Year of publication
2001
Pages
77 - 90
Database
ISI
SICI code
0092-2102(200101/02)31:1<77:OCMSAF>2.0.ZU;2-V
Abstract
Fingerhut mails up to 120 catalogs per year to each of its 7 million custom ers. With this dense mail plan and mailing decisions made independently for each catalog, many customers were receiving redundant and unproductive cat alogs. To identify and eliminate this excessive operational expense, IBM an d Fingerhut together developed an optimization system that selects the most profitable sequence of catalogs, called a mail stream, for each customer. With mail streams, Fingerhut makes better mailing decisions at the customer level, resulting in increased profits. Today, Fingerhut runs this applicat ion weekly to find the most profitable mail stream for each customer.