Direct Marketing drives business growth
The brief
A well established retail business that had been trading for over 25 years was experiencing falling revenues and increasingly squeezed margins. In a highly competitive market, the business had a reasonably loyal customer base, yet it was clear that some elements of its marketing were simply not working.
Although suppliers often sent through special promotions, there was no cost effective mechanism for informing customers of these in a timely and targeted manner. And despite having recently invested in a website that could collect sign-ins to a database, award loyalty points, and distribute newsletters, this was not fully operational and our client was not seeing any return on this significant investment.
The Synthesis approach
As part of a focussed marketing plan, direct marketing became the overriding strategy, supported by in-store displays, events, website and signage. A ‘virtual club’ was established where members would receive loyalty points on each purchase - with these counting towards free $50 gift vouchers, invites to events, information evenings, new season product releases, training courses, special offers etc. In addition, customers would receive a monthly email newsletter promoting specific products and providing useful and relevant free information.
The results
Our client’s double digit decline in revenue was turned around to 20+% growth.
The customer database has grown from 300 to over 5000 and is still growing every week.
Hasn’t missed sending out a monthly newsletter in 4 years and uses the database to make other special offers in between times.
Has increased shop area by 30% and redesigned and modernised premises completely.
Has increased the number of employees from 3 to 9 as well as attracting very high calibre staff from throughout New Zealand and overseas.
Systems have been developed for promotions and there are several ‘campaigns’ that can easily and inexpensively be repeated year after year.
As the number of competitors has increased significantly, the database marketing approach has protected this business’ market and built customer loyalty.
The approach has also expanded our client’s market beyond its geographical area, with sales now coming from all over New Zealand.
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