Attracting New Customers – Ideas that Work for Retailers

Posted on by Christine DeLooze | No Comments »

Spending on direct mail is expected to increase again in 2011 and retail is one of the vertical markets expected to drive this growth. As the economy strengthens, more retailers are turning their focus to acquiring new customers. According to Target Marketing’s annual Media Usage Forecast, over 69% of marketers plan to use direct mail for customer acquisition in 2011 and 38% of B-to-C marketers feel direct mail has the strongest ROI for customer acquisition.

PODi has just completed a new study, “Traffic Generation Solutions for the Retail Market” exploring key direct mail tactics for new customer acquisition that are powered by digital print solutions.  We’ve discovered that one of the main challenges marketers face in this space is attracting new customers.

The most important component of any direct marketing campaign, especially those designed to attract new customers, is the list – making sure your message gets to the right people, the people most likely to purchase. Let’s take a quick look at how one small business managed this.

  DaVinci’s, an upscale restaurant closed for remodeling and re-launched several months later with an all new look and menu. They needed to welcome back existing customers and attract a new base of trendier, more affluent clientele. They worked with Mann & Co. to create a cross media campaign incorporating print, email, online and social media elements. It was initially sent to a list of

5,500 names – a sampling of all zip codes within 5 miles of the restaurant. A subsequent campaign targeted 8,500 names from the four top performing communities.

Results?

  • Business has grown more than 45%
  • 6% visit rate – recipients went to their Personalized URL
  • 4.8% response rate – recipient completed online survey
  • A database of nearly 1,000 customers and qualified prospects has been developed
  • 220 potential customers added to the database via “Refer a friend”
     Another example of effective list strategy was used in a co-op mailing for small businesses serving the Cape Cod, Massachusetts area. According to the Cape Cod Commission, 32% percent of the Cape’s housing stock is owned by second-home owners. Since many of these homeowners only spend a few weeks a year in their Cape home, it was important to reach them at their primary residence. The target audience for the campaign was owners of the highest valued vacation homes ($300,000+) in affluent neighborhoods of Cape Cod.

The personalized co-op mailing, developed by Curley Direct, was sent to primary home addresses before the summer months, and it drove users online to get coupons from participating Cape Cod companies. The campaign achieved:

  • 8% response rate – recipients who visited their Personalized URL and clicked on a link
  • Over 66,000 click-thrus – visitor clicked on an individual company’s offer
  • A survey sent to recipients following this campaign showed that:
    • 46% were highly satisfied with the mailer
    • 76% said they enjoyed the offers
    • 51% said they used the coupons

“Traffic Generation Solutions for the Retail Market” is a PODi member exclusive, designed to be used by marketers and by creative solution sales teams to get insight into customer needs and best practice solutions.  It is the 3rd in a series of Vertical Market White Papers that examine key challenges and solutions based on the PODi case study database.

PODi members: read the full paper “Traffic Generation Solutions for the Retail Market” (ADD LINK HERE)

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