Case Study

First-time mailer lowers CAC by 380%

LIFT IN CUSTOMER CONVERSIONS

258%

iNCREASED CONVERSION RATE

46%

lIFT IN SUBSCRIPTIONS

18%

Summary

From Social-Only to Sold-Out

A subscription retailer launched a new version of a CPG staple and found early success with social media marketing. However, they soon realized that expanding into additional channels was necessary for growth and partnered with sg360° to test direct mail.

sg360° helped the client reach a largely untapped audience using direct mail. We exceeded client expectations and delivered impressive results. The campaign drove more conversions, better customers, and dramatically lowered acquisition costs.

Visually engaging woman opening yellow mailer, direct mail marketing campaign, customer engagement.

Client Challenge

A subscription-based retailer had a new twist on a CPG staple and was successful with their initial social media-only marketing efforts. But they quickly discovered that in order to grow, they needed to branch out into other channels, and engaged sg360° to test direct mail.

The client’s challenge was to reach new customers beyond their social media base and scale growth effectively.

Competitive business team analyzing marketing data on computer screen for direct mail campaign results.

Course of Action

How We Delivered Results

Our Strategy

Our 360-degree Audience Insights process analyzed the client’s 70,000+ active customers file, evaluating dozens of key demographic, behavioral, and psychographic attributes. As a result, sg360° revealed to the brand exactly who their most valuable customers were.

We then targeted two statistically significant test audiences to expand the brand’s reach:

  1. Direct mail retargeting of non-converting website visitors
    sg360° placed a tracking pixel on the brand’s website, uncovering approximately 6,500 qualified leads weekly, eventually targeting 187,000 individual anonymous visitors with direct mail.
  2. Lookalikes based on the client’s best customer model
    Our modeling indicated the most profitable existing customers were both receptive to the brand’s unique offering and far less likely to be social media users. We identified a large look-alike audience based on the same key data points and developed creative and messaging tailored to them.

Creative development and testing

sg360° worked with the client to develop packages, visuals, messaging, and offers for each audience, ultimately producing and mailing:

  • #10 package (lookalikes)
  • Postcard (retargeting)
  • Product Trial Kit (lookalikes & retargeting)

We designed and implemented a brand-specific QR code that bumped website conversions by 11%+.

Direct Mail as Campaign Workhouse

sg360°’s direct-mail-generated customers were more affluent, older, and generally more brand loyal than customers acquired from social advertising. They were also 20% more likely to purchase subscriptions, and 10% more likely to purchase additional brand products.

Results

Reached an Untapped Audience

IMPROVEMENT
0 %

in cost to acquire a customer

Lift
0 %

in customer conversions over holdout

LIFT
0 %

in subscriptions

INCREASED
0 %

conversion rate over social media marketing

New Customers
0

in a 4-week campaign

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