North Carolina housewares importer
$3k Every Door Direct Mail campaign returns $54k in sales
A North Carolina housewares importer hosts a close-out sale at their warehouse two times a year. In 2011 the company sought a new way to promote their fall event.
This case study is written under the condition that the name of this privately held company would be held confidential.
According to the company’s art director, their sales always pull a good response from certain neighborhoods where they have a strong following. This year they wanted to increase sales by developing new customers from other neighborhoods.
(Download the two page PDF success story)
How to cost-effectively promote the fall sale to qualified prospects in new neighborhoods?
The Laser Image team recommended an Every Door Direct Mail (EDDM) campaign to carefully selected postal carrier routes in the target communities.
The campaign goal was to put an attractive mail piece with a compelling offer into the hands of people in neighborhoods matching the demographics of importer’s established customer base, at the most reasonable cost.
Laser Image’s marketing support team worked closely with the importer to define the campaign.
- Mail piece: a flat, printed in full-color, including images of select merchandise and two coupons
- Offer: a one-item, 25% off coupon, plus an additional coupon if you “bring a friend.”
- Delivery: 12,750 pieces, targeted to carrier routes serving high-end neighborhoods, one week before the sale
- Budget: $3,000 to cover printing, finishing and postage
New customers from the targeted neighborhoods redeemed 263 coupons, a response rate of 2.06%. This is quite acceptable for a one-time mailing carrying a generic message.
Even better, computed sales from these coupons came to an impressive $54,178. This represents an ROI of 18.1 on the initial marketing investment of $3,000. For every dollar Laser Image’s client spent on this campaign they sold $18.10 worth of merchandise.
This customer is a well-known company with a strong brand. They sell expensive, high-end products. These factors no doubt boosted their response rate and, even more so, their dollar return.
But the results prove that direct mail campaigns succeed splendidly when they are strategic, well designed, and employ well-chosen delivery methods.
More about EDDM
Every Door Direct Mail is a service from the US Postal Service that lets marketers deliver messages to every mailbox on selected carrier routes. Think of it as targeted leafleting by the Postal Service directly to mailboxes.
The postage rate for EDDM is only 14.9 cents per piece. Since mail is delivered to each and every mailbox on chosen routes, marketers also save by not having to purchase and presort mailing lists.
To qualify for EDDM rates, mail pieces must take the form of a “flat,” essentially a large postcard between 11.5 and 15 inches long and 6-1/8 and 12 inches high.
EDDM is a powerful tool for businesses that wish to saturate neighborhoods surrounding their locales. It also works for companies like the subject of this study, whose customers can be located by neighborhood demographics.