Speed to Market
A turnkey solution that
increased revenue by $1.7MM
Background
This luxury sleepwear brand was not new to direct mail, but previous results were not optimal. They were looking to acquire new customers at a positive ROI, and paper quality/format was of upmost important to showcase this premium brand.
Brand Challenges
Prior to partnering with Media Horizons, the company was having difficulty identifying and sourcing the right paper to showcase its premium brand when the market was challenging. Additionally, their new customer numbers were softening.
Solution
Media Horizons identified opportunities with list segmentation strategy and improving model performance, while expertly managing all aspects of production, including format and paper recommendation. The MH team’s vast experience with similar brands and the direct mail channel overall enabled them to quickly identify the solutions that would work best for this brand. The initial campaign consisted of both co-op acquisition names from two different data partners (selecting top ranking names from segments one and segments two only with the highest propensity to purchase), along with a housefile segment consisting of 0-24 month buyers. We worked with our data partners to successfully build several new lookalike models based on the client’s transaction data that were used for customer acquisition.
RESULTS
The short-term goal was to deliver an attractive holiday catalog to best showcase this premium brand’s product offerings, acquire new customers, and drive sales from new and existing customers alike at a positive ROI. The long-term goal was to develop a strategy to effectively scale the direct mail program to continue acquiring new customers cost-effectively and drive existing customer sales.
The first catalog drop performed well above expectations with the match-back analysis showing prospecting order rates ranging from 1.21%-2.41% depending on the list segment. Excitingly, $1.7MM+ was generated in revenue. The overall ROAS was nearly $18 – prospecting models saw a ROAS of $6.27 (customer acquisition list partner 1) and $5.27 (customer acquisition list partner 2).
The brand continues to partner with Media Horizons to achieve their long-term goals through methodical analytics and optimizations. Media Horizons has continued to recommend additional model solutions for both customer acquisition and lapsed customer activations, along with different product categories for testing. In addition, Media Horizons has identified incremental large housefile segments to mail that have had a very positive impact on overall results and ROAS.