In partnership with Clients, the BIG idea was born – Vendor Marketing Programmes (VMPs). VMPs consisted of a multi-channel marketing approach to meet vendor partner marketing objectives. Vendors chose from over 20 turn-key, cost shared co-op programmes fully customised, highly targeted for their individual brands. Vendors were able to select key products that were featured in co-op programmes while SDM controlled targeting data to ensure relevant communications were delivered to a high propensity audience. By looking at SKU level data, vendors were able to hone in on their target and customise their marketing messages and offers based on a Member’s brand purchase behaviour and demographics.

SDM created a VMP launch presentation where 700 leading contacts participated. To date, over 100 leading brands have participated in SDM VMPs. These programmes have also achieved recognition in US publications like Direct Marketing News. VMPs have driven over $25 million in incremental sales for SDM, with response rates as high as 25%. Retention rates amongst those Members who have received VMP communications are almost 10% higher than those who have not. The average lift in basket size/customer value is almost 5% (vs those who have not received VMP communications). Metrics vary from campaign to campaign, but the average vendor has enjoyed an almost 8% increase in sales (measured via mail vs control cell). The average market share inroads for a vendor have been almost one-half percent (mail vs. control cell), a very significant number given the market size of many product categories and the fact that many categories are in the low growth/stagnant stage of the product life cycle.