We recently had the pleasure of hosting a live discussion with Jake Newbould, CMO of luxury brand,Piglet in Bed, where we delved into his insights and experiences with direct mail marketing. Together, we explored its profound impact on customer acquisition, retention, and the overall growth of the brand.
The Journey into Direct Mail: Piglet in Bed, the renowned luxury brand offering exquisite Bedding, Sleepwear, and Homeware, boldly embarked on a new adventure in the realm of direct mail marketing. According to Jake, their foray into direct mail marketing started in September of the prior year, and although they faced some initial challenges, their commitment to the path paid off as they began to witness more than promising results.
But what made them take the plunge into this age-old channel?
According to Jake, direct mail served as a stepping stone in their marketing strategy. They had already invested in digital channels like paid search, but direct mail offered a unique advantage –the opportunity to have a tangible and immersive experience with the brand. As Piglet in Bed expanded its product range, they saw direct mail as an ideal way to tell their brand story and showcase their offerings effectively.
Measuring Direct Mail's Impact: Jake emphasised the importance of measuring direct mail's impact, especially when it comes to justifying the investment. While direct mail might be more expensive than some digital channels, Piglet in Bed looked at the long-term value (LTV) versus customer acquisition cost (CAC) ratio. Jake stressed that there's no one-size-fits-all ratio, as it depends on a company's goals – growth or profitability. They even employed a data warehouse to evaluate their performance over time, focusing on cumulative demand and LTV.
Diversification of Acquisition Channels: The conversation also revolved around diversifying acquisition channels. Jake highlighted the significance of incrementality in their approach. Piglet in Bed aimed to reach brand-new audiences through direct mail, especially with their catalogue. By comparing control groups and testing various segments, they strived for a reliable model that would ensure their investments were worthwhile.
Retention and Reactivation: Jake emphasised the importance of retention and reactivation efforts through direct mail. Piglet in Bed used direct mail not only for acquisition but also for their house file – existing customers. They conducted control group tests to measure the incremental value of direct mail in retaining customers and reactivating lapsed ones. Jake acknowledged the need to balance acquisition and retention strategies, recognising the value of long-term customer relationships.
Tailoring Creatives for Different Audiences: When it comes to creative content, Piglet in Bed recognised the importance of tailoring messages for different audiences. While Jake mentioned that their catalogue design remained consistent for both cold and house file audiences, they made subtle changes, such as font size and message clarity, to accommodate first-time customers who might not be familiar with the brand.
Localisation for Different Markets: In response to a question about international markets, Jake explained that they made adjustments to cater to the preferences of their US audience. While the design remained similar, they adapted the tone of voice and positioning to better resonate with their American customers. Jake highlighted the importance of being flexible and attentive to regional differences.
Timing and Seasonality: Timing is crucial in direct mail marketing, and Piglet in Bed carefully planned their mailings to align with product launches and seasonal trends. Jake mentioned that they avoided competing with heavy promotional periods and instead aimed to create peaks in their trading calendar.
Jake's insights from Piglet in Bed's journey into direct mail marketing provide valuable lessons for businesses looking to harness the power of this channel. Some key takeaways include:
- Measure the impact of direct mail using LTV vs. CAC ratios.
- Diversify your acquisition channels while focusing on incrementality.
- Prioritise retention and reactivation efforts through direct mail.
- Tailor creative content for different audience segments.
- Be flexible and adapt to regional preferences in international markets.
- Pay attention to timing and seasonality to optimise results.
Direct mail can be a potent tool when integrated into a holistic marketing strategy, as evidenced by Piglet in Bed's successful foray into this channel. It's a reminder that, in the ever-evolving landscape of marketing, traditional methods like direct mail can still play a vital role in driving brand growth and customer engagement.
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