Digitally-native brand experiences offline success with double-digit ROAS
Background
This contemporary children’s swimwear label and resort brand offers designs that are timeless yet modern, playful and polished. They were referred to Media Horizons by another satisfied client.
Brand Challenges
This brand was historically focused on digital marketing, but were seeing a point of diminishing returns. They were new to the world of offline media and catalog. They needed an experienced partner to develop a winning list strategy to reach the right customers, along with a winning catalog format to showcase their premium offerings. In partnership, Media Horizons identified that the brand would benefit from media mix diversification to maximize their investments. MH worked to prove out offline media as a new channel, beginning with a test plan, for this digitally-native brand.
Solution
MH launched the retailer’s first ever catalog in March 2022. The campaign consisted of both Co-op acquisition names, and various housefile segments. For the customer acquisition portion of the mail file, we successfully built a lookalike model using the retailer’s transaction data and ensured we were only mailing to the prospects most likely to convert. For the housefile portion of the mail file, we used RFM segmentation to ensure we were mailing to the top house names.
RESULTS
The short-term goal was to prove out the value of direct mail. The long-term goal was to develop a strategy to effectively scale the direct mail program in order to continue acquiring new customers cost-effectively.
The retailer’s first mailing was an overwhelming success with the match-back analysis showing an overall ROAS of $17.67 and $11.84 CPO. The prospecting results were particularly exceptional, showing a 1.96% order rate, $6.21 ROAS, and $36.44 CPO.
The brand continues to partner with Media Horizons with continuous success.