Here, we touch on a piece of the marketing mix that is often ignored in the digital age: direct mail and print. As you’ll read in the case study below, this internet retailer had experienced dramatic growth and steady increases since its foundation in 2012. Recently before working with Arandell however, sales had started to decline along with repeat buyers as the retailer didn’t have a full grasp as to who their customers were and what their purchasing habits tended to be. That’s when Arandell stepped in to introduce a new piece to their marketing mix that changed their business forever.
About the Customer
It started with The Shirt. And the concept of creating a shirt that actually fits the person – customized to their unique body features. Over the years, this pure play internet retailer has expanded their collection into a full range of menswear that compliments their shirts. The company sells a combination of dress apparel, casual apparel, sports apparel, accessories and footwear designed to appeal to adult men between the ages of 25-35. As a start-up company in 2012, they have achieved $10MM in sales and have been featured in GQ Magazine, Men’s Health, Pose, and Esquire.
This pure internet retailer was struggling to better understand their customer. Results showed that while web traffic was steady, actual new purchasers were decreasing. In addition, brand loyalty was weakening, repeat buyers were decreasing, returns were increasing and average order was declining. The retailer needed a new strategy for expanding their brand awareness, increasing their customer base and growing their business profitably. They needed to enhance their marketing efforts to gain business, but as a pure internet retailer, this was a challenge.
Meeting with the retailer’s leadership group, Arandell educated the team on the basics of direct marketing and the need to promote the brand across multiple channels to provide customers and potential customers with a choice to purchase that best fits their lifestyle and preference. The catalog would play a critical role in future acquisition and customer retention campaigns and become part of their omni-channel environment.
It was imperative for the retailer to have a complete understanding of their customer, so Arandell introduced them to our proprietary 360 customer view, called Marketing Genetics™. This profile helped clearly define who their customers are, what their interests are, where, and how they spend their money.
Through this exercise, we uncovered that the customers who were identified as “single channel buyers” had a significantly lower average order size than the customer segments that were identified as omni-channel buyers. This high value data helped identify the potential market available for their products.
Omni-channel campaigns were created using the catalog as the driver. In conjunction to receiving the catalog, prospects received an email and digital ad to coincide with the in-home delivery of the catalog. Current customers also received a catalog, but the e-commerce channel preference also received an email.
• Acquisition increased by 38% using a multi-channel effort versus an email only strategy
• Average order was 15% higher for multi-channel buyers versus pure internet buyers
• Returns decreased by over 10%
• Repeat buyers rose by 8% three months after the initial catalog roll out