Marketers use direct mail to move customers between channels. Because of this , we are seeing a renaissance of Direct Mail that’s already begun to transform retail shopping.
A few years back, the conventional wisdom was that the internet would kill the catalog. It turned out that retail customers loved their catalogs, let their fingers do the walking and then went on-line to make their purchases. Print drove the consumer go on-line and consumers shopped on-line with gusto. We can just look at the numbers from Black Friday alone to see how on-line sales revenue has increased exponentially.
Catalogs Make a Comeback
But the catalog didn’t die. Retailers like J.C. Penney, which had given up on a physical mail presence during the recession, have actually resurrected the catalog, due to both consumer preference and an omni-channel strategy. Other catalogs have increased their size, because they have found they can use their catalogs as a vehicle for expanded content marketing.
A number of retailers are using web analytics to customize catalogs. L.L.Bean now creates multiple versions of its catalog based on a consumer’s online browsing habits. Therefore, instead of sending every customer the largest catalog, L.L.Bean can now send a custom edition targeted to each customer’s interests. L.L.Bean can even grow their mailing list using modeled data to expand their reach. I remember when this kind of segmentation was done using actual customer purchase history.
Like the catalog, physical retail was also supposed to die. Retailers are now seeing the rise of a new trend known as “webrooming” which is when consumers start the shopping experience online but go to the store to complete their purchase. This is especially true in the furniture industry. Exactly the opposite of what is called “showrooming”, where consumers go to the store to do their research and make their purchase on-line. In either case, using direct mail to move customers between channels makes it happen.
Intelligent Mail Barcode reporting technology makes it possible to sync direct mail with online channels and impact customers with both online and offline offers. New technology in direct mail to move customers between channels includes taking the actual mail lists and uploading for addressable geo-fencing gives retail campaigns even greater depth and more robust branding opportunity.
Nordstrom as a Prime Example of Multi-Channel
Look at the experience of a retailer like Nordstrom. They have found that customers who have a multichannel relationship with their brand spend four times more than those who don’t. The Nordstrom direct mail catalog can drive consumers to the website or right into the store. A direct mail after the store visit can also retarget consumers back to the website. Nordstrom also offers in-store pickup. This is where you buy on-line and pick up at the store at a convenient location. Once again, we are using the different media channels to make it easier for the consumer to complete their purchase. This builds sales revenue, engagement and loyalty. We are giving consumers choice.
The key component in all of this is direct mail. Direct mail is the conduit retailers use to move customers between channels. It is the method that allows retailers to remain present in their customers’ lives between store, home and digital.
Just think about the success of Amazon’s omni-channel catalog if you want an example.
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