The explosive popularity of the internet as a marketing tool has given many small business owners the opportunity to reach many potential customers in a cost effective manner. Digital marketing tools are cheap, and they can be extremely effective when executed correctly. While businesses still utilize snail mail to engage customers, it is a lot less common than it used to be. Free Logo Services, an online provider of logo design services, decided to utilize snail mail to follow up with customers and inform them of additional services provided by the company, including custom pens, business cards and samples of which they mailed to customers. CEO Craig Bloem discusses the campaign and how it was successful.
(Photo courtesy of Craig Bloem)
Traditional mail offered Free Logo Services a way to connect with its customers in a manner that was unexpected. Bloem states, “When we needed a new approach to get customers’ attention, we decided to test out sending direct mail. All of our business is done online, so we thought this would be a creative tactic to reach our customers another way. One of the most difficult tasks as a company is to figure out how to turn first time customers into repeat, lifelong customers. In our space, the competition is fierce. Brand loyalty is the key to success. We had the ability to reach out to our customers with a 100 percent custom piece of mail that would get their attention, something that even a well-crafted, custom email might not be able to accomplish.”
With mail campaigns, it can be difficult to measure the return on investment. Bloem took care of the problem by mailing out 4,500 mailers to customers and 4,500 to a control group. “When testing direct mailers, we selected an audience, then split the group so that we have a control. It’s a classic 50/50 split. Because of this control group, we were able to compare the number of people who received the mailer and purchased to those who purchased a second time and were in the control group without a mailer. In the case of this mailer, we already had unique values [customer IDs] for each person in both the test and control groups because they had purchased from us before. This ID allowed us to link the second purchase to the first.”
After completing the campaign, Bloem and company found that the recipients of the mailer had a 64 percent higher conversion rate than the control group. Although there is always a risk of customers ignoring your mailer, it can be a refreshing change of pace in the current market where people are bombarded by digital media.
This article was written by Alaina Brandenburger of Examiner.com for CBS Small Business Pulse.