Strength of Direct Mail
Direct mail & subscription services brands are a perfect pair
Background
This subscription service company has been in the mail since 2005. For over 16 years, direct mail has proven to be the clients most successful acquisition channel in terms of the number of new customers brought it as well as Average Order Value (AOV) and Lifetime Value (LTV). Consistent optimization of the data sources used allow us to continue improving upon results year over year.
Brand Challenges
As a well-known national brand, brand recognition isn’t technically a challenge for this company. The challenge is the industry: subscription services, especially beverages, is an extremely crowded and mature category. It has a large audience of people looking for the most cost-effective products. Therefore, competitors are often trying to increase their share in the category. In order to maintain this brand’s position in the market, it was critical to increase their brand awareness, acquisition and retention – a full funnel approach.
Solution
Back in early 2000, we discovered that direct mail works both effectively and efficiently. However, we weren’t sure how Covid-19 would affect the channel. This subscription service continued to mail during the pandemic, relying on their past success with this tried & true channel with Media Horizons. Keeping in line with their original plan, the brand continued to see success. At that time, the plan was to mail three additional mailings totaling 3.5MM pieces. Ever since, the brand has beaten every campaign’s goal. For this brand, success means retention and LTV. Direct mail responders stay customers longer than any other channel.
The brand has been able to enjoy campaign successes due to consistent optimization of data sources, updated and innovative creative and the macro effects of the pandemic. Looking ahead, this subscription service is continuing to expand from 2023 onwards.