Creative Direct Mail Ideas That Bring Shoppers In
In the bustling world of retail, where digital marketing often steals the spotlight, direct mail remains a potent and effective marketing tool for drawing in more customers and increasing their per-visit spend. For grocery stores, direct mail campaigns can offer a tangible connection that digital can’t replicate, especially when designed to stand out. Imagine receiving what appears to be a postcard-sized gift card in your mailbox – this isn’t just any piece of mail; it’s a direct mail masterpiece designed to catch the eye and entice the recipient to visit your local grocery store.
The Might of Direct Mail for Grocery Stores and Local Businesses
Direct mail for grocery stores and consumer-driven local businesses is no longer just about sending out flyers or coupons. It’s about crafting a marketing strategy that feels personal and valuable. With an emphasis on direct mail that mimics the feel and thickness of a gift card, perhaps with biodegradable lamination, these pieces are not only durable enough to withstand the harshness of the mail-stream but also intriguing enough to encourage consideration.
This approach to direct mail marketing has shown to have very high redemption rates that can reach double-digit redemption percentages, even exceeding 25% over a 5-year span. When a potential customer receives something that feels like a gift, they engage. For grocery stores, this means an opportunity to grow their customer base with new customers, while growing the habits of their existing customers. Even the downward migrating customers can be compelled to increase basket sizes and more return visits.
Design for Impact
When considering direct mail campaigns, the design is an integral part. A custom piece that’s destined for high and cost-effective redemption rates can include:
- Texture and Finish: Comedian Mitch Hedberg once made this astute observation, “When someone hands you a flyer, it’s like they’re saying, ‘Here, you throw this away!’” The same can be said for the majority of what ends up in the mailbox. It tends to be flimsy, scuffed, creased, smudged, may be addressed to “Resident” and is effectively a flyer with postage. It’s junk mail. In contrast, using materials that feel like a custom designed gift card conveys the sense that the piece holds an intrinsic value.
- Visuals and Messaging: Use bold and clear visuals with compelling offers that are immediately understandable. Phrases like “Exclusive Gift for You” or “Unlock Savings” can be effective, almost as effective as “$20 Off.”
- Direct Mail Postcards: While postcards offer less space, they also have no “open rate.” A postcard that stands out – gets read. Postcards are efficient, to the point, economical, and incredibly effective when done right. Double digit redemption magic happens when they have a wallet-friendly pop-out or two that resembles the thickness and texture of gift cards. Enabling the recipient to effortlessly carry your offer exponentially increases the likelihood of an in-person redemption.
Targeting the Right Audience
The success of effective direct mail, meaning direct mail that increases your sales, hinges on reaching the target audience. For grocery stores, this might mean focusing on existing customers from a loyalty list or households that meet demographic criteria. An upscale boutique grocer is going to have a different target audience than a neighborhood grocer in a low-income area. By carefully tailoring your direct mail targets, you ensure your direct marketing effort’s success. Use data analytics to refine your approach and lean on the printer’s ability for personalization.
Examples of High Impact Direct Mail Campaigns
Here are a few ideas for direct mail campaigns that could resonate:
- Seasonal Specials: Mimic gift cards with seasonal designs offering discounts on holiday groceries or special event catering packages. Think about holiday themes where the mail piece could feature a festive look to go along with your offers.
- Loyalty Rewards: Send out a piece that includes an immediate discount to encourage sign-ups for your rewards program. For those that are already valued loyalty members, entice them to more frequent visits and increased basket sizes with a $20 Off (with minimum) offer. Similar tactics can be used for loyalty members you haven’t seen in a while or to grow new customers with a specialized list that resembles your best loyalty customers.
- New Product Launch: Introduce new products with a direct mail postcard that has a custom-designed pop-out that resembles your product, encouraging customers to try something new. Use color schemes and designs that match the new product’s branding for an immediate association.
- Health and Wellness Drives: Promote healthier eating with direct mail that looks like a wellness card, offering deals on organic or health-focused sections of the store.
- Community Events: Tie in with local events or festivals, offering themed direct mail postcards that support community activities, thereby enhancing brand goodwill.
Measuring Impact and ROI
Direct mail is an incredibly effective direct marketing tool when used to its potential. Track how many recipients redeem offers, monitor increases in-store visits and spending per-visit, and use unique offer codes on each mail piece to track sales directly attributable to your campaign. This data is crucial for understanding how direct mail boosts your marketing strategy to increase revenue. Using the principles laid out above, grocers can realize gains beyond their lofty goals.
Below is a case study from a West Coast grocer who set a bold target of 10% for their redemption rate.
5-Year Case Study and Measuring the ROI of a Grocer’s Direct Mail Campaigns
Collateral: “Acclaim” Single Pop-Out Laminated Postcard – the Super AcclaimMailer™
List: Personalized Loyalty
Offer: “$20 Off” with minimum purchase
Redemption Rate: 25.02%
ROI: 55.4%
Transaction Size Gain: 7.78%
Total Recipient Sales Gain: 30.18%
BREAKDOWN
Year 1:
Redemption Rate: 29.4%
ROI: 63%
Avg transaction size: +6.1%
Total Recipient Sales: +16%
QUOTE: “The stated objective would be to encourage upward migration between customer segments, based on transaction size. 27.2% of the mailed group migrated upwards while only 13.7% of Acclaim non-recipients did – a nearly 100% improvement.”
Year 2
Redemption Rate: 28.2%
ROI: 62%
Avg transaction size: +8.2%
Total Recipient Sales: +31%
QUOTE: “The stated objective of the promotion was to encourage upward migration between customer segments, based on transaction size. 38.3% of the Acclaim group migrated upwards while only 21.6% of Acclaim non-recipients did – a nearly 100% improvement. The redemption group was far more likely to remain a Best Customer: 75.7% to 48.4%”
Year 3
Redemption Rate: 15.4%
ROI: 48%
Avg Transaction Size: +8.9%
Total Recipient Sales: +45.5%
QUOTE: “The stated objective of the promotion was to encourage upward migration between customer segments, based on transaction size. 29.8% of the Acclaim group migrated upwards while only 16.7% of Acclaim non-recipients did – a nearly 90% improvement. Sales metrics for the customers who redeemed the offer far exceeded the non-redeemers with a sales difference of +45.5%.”
Year 4
Redemption Rate: 24.2%
ROI: 48%
Avg Transaction Size: +7.5%
Total Recipient Sales: 31%
QUOTE: “The mailed group had huge gains in sales in the top customer segments due to upward migration. The Low-Level segment was the only one to decrease, which was the objective! The promotion had a .48 ROI which is certainly a very good result and worth repeating.”
Year 5
Redemption Rate: 27.9%
ROI: 56%
Avg Transaction Size: +8.2%
Total Recipient Sales: +27.4%
QUOTE: “Downward migrating customers that redeemed the offer had a 27.7% sales increase and Low- Level shoppers who redeemed had a nearly 67% sales increase. Low-Level Shoppers who did not redeem the offer collectively had a 1.2% sales decrease while those that did redeem had a nearly 67% sales increase.”
Conclusion
For grocery stores looking to stand out in a crowded market, effective direct mail campaigns that adopt the look and feel of gift cards offer a unique way to attract more customers and more sales. This approach leverages the tactile advantage of direct mail over digital and plays on the psychological attraction of receiving something of perceived high value. By tailoring the target audience and measuring the impact, grocery stores can enhance their customer base, engage existing customers more deeply, and attract new customers. In the realm of direct mail marketing, creativity combined with strategic insight can lead to substantial increases in customer engagement and revenue, proving once again that sometimes, the most effective marketing strategies are those that you can touch and feel. Ready to get your direct mail campaign in flight? and leverage our solutions to drive measurable results.