Arandell News + Events

How to Leverage the In-Store Experience with Direct Mail – Case Study

The in-store experience is still something that is incredibly valuable to many customers, even with the near-exponential growth in online shopping and sales. Like the customer in this case study, many retailers lose sight of optimizing the in-store experience to focus on digital and their in-store sales suffer. Here’s one great example of how Arandell worked in conjunction with a customer to develop a program intended to increase in-store purchases and overall brand loyalty.

About the Customer

For over a century, this retailer has stayed focused on serving the unique needs of the luxury market. They stand true to the principles of their founders – aiming to be recognized as a luxury retailer dedicated to providing customers with distinctive merchandise and superior customer service. They are one of the nation’s premier retailers, with fiscal 2015 sales of $27 billion. The company operates about 840 stores worldwide.

The Challenge

This retailer was looking to develop a store branded credit card with rewards redemption based on in-store purchases. In today’s competitive financial landscape, key stakeholders realized that this retailer had to boost its in-store experience program to a new level, while also providing flexibility to grow and evolve to support future program needs.

With the rise of digital channels, this retailer focused much of its efforts on optimizing processes there while somewhat leaving their in-store experience initiatives by the wayside.

The Solution

By using credit card models that were proprietarily-developed, Arandell identified a target segment of customers who have multiple lines of credit, carry a balance, and meet the necessary preliminary financial qualifications. From the modeling process, customers who scored in the two upper deciles were forwarded to the credit bureau for credit score final approval.

Arandell was engaged to launch a rewards program in order to motivate the retailer’s customers to increase their monthly spend, and strengthen both their engagement and their loyalty to the retailer.

Arandell and the client accomplished this by conducting a comprehensive analysis on the most recent mail file using Arandell’s Power Analysis™ which incorporates a full suite of address integrity solutions. Additionally, we uncovered deficiencies during this process – ones that would have never been uncovered without the Power Analysis™.

Through the analysis, we identified that over 80% of the file contained data that was inaccurate, undeliverable, outdated or duplicated. Through this process we lowered their per piece direct mail costs by 5%. The updated corrected file was used in the next mailing and the response rates were 6% higher than previous.

Overall Impact

• Total sales from that mailing was 14% higher than previous mailing
• Credit processing costs were reduced by 40% through our pre-screening process
• Initial customer acceptance of offering was 27%
• 50% increase in year-over-year program enrollment
• 20% increase in opt-in rates

Buyers activity was measured through the year and showed:

• Credit card customer revenue was 23% higher than Non-credit card customers
• AOV was 18% higher
• Frequency of purchases was 17 times higher than non-credit card customers