Case Study: Road Runner Sports Keeping Pace
During winter, if you live in New England, you get a catalog that has snow or winter weather on the cover and running suits inside—something you won’t get if you live in California. RRS also uses geography to target certain people for local races and marathons, especially those that support Athletes Helping Athletes.
RRS uses birth date to personalize catalogs with an age-appropriate cover model and to deliver a special birthday mailer. The birthday mailer offers free shipping on all orders for the month of the customer’s birthday, a free mug or another relevant offer. In some instances a regular catalog cover is dot whacked with similar offers.
The Next Mile
RRS will continue to expand its targeted approach by marrying its online and off-line data—allowing RRS to treat customer segments individually, just as it does with the catalog. Working with Broadvision, RRS will begin online targeting of customers in late spring with personal landing pages for registered customers, show products based on gender, make product suggestions using real-time and past purchase history, and offer personalized content.
“Broadvision gives us the ability to analyze and personalize the feel and look of what they see,” says Ness. “We are expecting to see increases in average order values and conversion—it is a 100-times better upsell than we can do on the phones.”
RRS’s growth, he says, has exceeded his expectations. And even though he could sell the business for many millions, Gotfredson says he intends to continue guiding the company and expanding the way it reaches customers, such as its creation of an online store for Walking magazine.
“It wouldn’t feel right to have 10,000 bosses,” says Gotfredson. “And I’m not sure they would appreciate us going running at noon.”