Postal Retargeting Boosts Conversions
With Boomerang direct®, LS Direct tailored a program for a national women’s apparel brand to reinvigorate their overall conversion rates, in both physical storefronts and online retail spaces.
A premier omnichannel retailer and nationally recognized women’s apparel brand, with close to 300 stores nationwide and a robust ecommerce presence, was seeing a decline in overall conversion.
Like many retailers, it is critical for women’s apparel retailers with both brick and mortar locations and ecommerce sites to convert online browsers. They were in search of a fresh approach to help them with 3 distinct groups:
- Lapsed customers who had not purchased at their stores in 13-months or longer
- Current customers who had opted out of email communication
- High-potential prospects
The retailer recognized that by targeting members of each of these groups that are shopping their web site, they could focus directly on people who are currently shopping and therefore highly interested in making a purchase. LS Direct’s Boomerang direct® solution could assist with all 3 groups, and postal retargeting was chosen as the marketing strategy.
A tag or cookie was placed on the web site and a pixel was added to outbound emails. Shoppers are then identified via their unique email addresses which are then converted to customer names and postal addresses either through matches to the retailer’s customer database or a permission-based third-party opt-in database.
The retailer chose to vary the message to each group and to include an offer for a discount off the purchase price. Working with the retailer, LS Direct performed an A/B/C test of 3-offers, with all offers being valid instore or online in addition to using a variable promotion code to avoid being published on discount coupon websites.
Postal retargeting was uniquely suited to market to the target groups… With Boomerang direct® we examined their 50,000 daily web visitors who didn’t buy and found those meeting their specific criteria. We scored them and sent a personalized postcard only to those most likely to convert.
Postcards were mailed via first class mail each day to web site shoppers in the 3 groups. 57,000 pieces were mailed over a two-month period, and 11,400 like-scored shoppers were held as a control group to measure results against.
The tested offers ranged from 20-30% off, and drove a 20% overall conversion rate, including both in-store and online purchases. “This response rate is considered extremely high by both LS Direct and the retailer,” adds DeLaite. “This was the first marketing received by the email opt-outs, so the response from that group was very strong.”
The results specifically for the prospects were also highly successful:
- +22% incremental response lift
- 1,008 additional orders vs. holdout control
- Lifetime value objectives reached
The program generated a combined $2.9 million in sales. The overall incremental ROI was 503% (incremental ROI is the lift of the 57,000 shoppers mailed over the 11,400 shoppers in the control group.) The 13-months+ lapsed customers have been a difficult group to reactivate and retargeting active web site shoppers proved successful with a 233% incremental ROI.
On the A/B/C testing, it was noted that the higher discount offers resulted in a higher response rate along with a slightly higher average ticket. Boomerang direct® proved to be uniquely qualified to help with the 3 target groups (including email opt-outs), and delivered a significant incremental ROI, despite a relatively modest average ticket of $170.
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