Fresh Data Blog
Fresh Data Archive
Case Study: Customer Reactivation Using Postcards
Date: October, 2013 --
In this case
study we’ll illustrate how an online apparel retailer took the novel approach
of attempting to reactivate its members, who were either dormant or had
unsubscribed from receiving email communications, with a traditional direct
mail postcard campaign. This case study will illustrate how even an eTailer catering
to a younger audience can benefit from direct mail, while also demonstrating
how trying a different medium of communication can make all the difference in
reactivating those chronic non-responders within your database. This case study
is brought to you by Data Services, Inc. in cooperation with our friends at the
imagine reviving 45% of customers who have gone to sleep on you with a little,
low-priced postcard? That is what the
Belgian “buying club” Outlet-Avenue did recently.
was founded with the goal of targeting young people with a fashion sense and
restricted budgets, thus having an eye for, and appreciation of, the best
brands, but at the best prices. The business model is “club” with a bit of a
twist of exclusivity. While selling exclusively online, counter-intuitively,
the club requires people who aspire to membership to be able to provide the
name of an existing member in order to get past “the velvet rope.”
the “exclusive” tone, the company’s slogan, intentionally chosen to be in
English, is “Smart shopping for smart people”.
Of course the dual use of “smart” to mean both intelligent and
“well-dressed” is not lost on young people in Belgium.
site sells current fashions and overstocks on-line exclusively, it needs to
continually wet the membership’s appetite, which it has traditionally done with
email and SEO efforts. These fade in effectiveness over time, apparently, and
the company discovered that 45% of its customers were “asleep” and no long
there might be many reasons for this lack of interest, not the least of which
is that this demographic has a fairly short loyalty span, but the company
suspected that it was possible that many of their unsubscribes were the result
of an over-full mailbox, or possibly a bad customer service experience.
problem with an unsubscribe is that the email channel is now closed, but the
physical direct mail channel using the customer’s purchasing address is still
open! Hence the decisions to use a very
simple but carefully focused postcard.
The card is
personalized to the inactive member and contains a warm and welcoming message,
“We miss you!”, along with an offer of a €20 ($26) discount on the next
market research to determine its effectiveness, the company learned that the
campaign had a remarkable 62% recall rate, which is substantially better than
the usual recall rate for the traditional retailers. Also impressive were the
59% reading rate, and 84% message retention rate. Moreover, a remarkable 64% of
the promotion’s recipients had used or intended to use the offer to renew their
top-of-mind brand awareness of Outlet-Avenue has surged over its competitors,
with an increase of 158% compared to the group who did not read the mailing.
directness and simplicity of the card produced remarkable retention of the
three primary messages: "We miss
you", "Register again" and "Enjoy this generous
attributed an increase in on-line order of 3.95% to the postcard and calculated
an ROI of 2.39 to 1.
This is a good
reminder of two important points 1) Direct mail is a very effective
acquisition, retention and reactivation tool even in the online and digital age
and with the ‘Digital Generation’ and 2) In some cases those ‘Chronic
Non-Responders’ are the result of the medium of communication and not due to a
lack of affinity to your products/services. Be sure to talk to your Data
Services, Inc. representative in order to discuss how our marketing technology/platforms
and data management processes can help you better target within your database.