An e-commerce company has leaned heavily into their direct mail channel for a large percentage of their new promotions and events, but they have been getting increasingly high unresponsive rates. Before optimizing their direct mail targeting, the e-commerce company had a response rate that was hovering near 1%, which was eating into their marketing budget and reducing its overall ROI.
Instead of scrapping its direct mailing program after an initially less-than-stellar effort, the company turned to Explorium to build a smarter optimization model. Using the Explorium Enrichment Catalog, our customer was able to build a broader picture of the right target by adding greater context. The company’s new direct mailing model combined internal sales and engagement data, as well as email, with the following indicators:
After connecting to Explorium, the company’s direct mail efforts saw a rapid 24% uplift in response rates as mail was directed exclusively at those most likely to respond. More importantly, the company saw a 14% boost in its ROI from direct mail in a matter of weeks. This translated into better per-customer revenues as a result of each dollar spent on direct mail. The higher response rates also translated into greater engagement and visits to the company’s online store.