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We all know the statistics. It costs far less to retain customers than it does to acquire a new one. Depending on whom you ask, estimates range from 5 times to 30 times less. In fact, 49% of companies say that, dollar for dollar, they get a better ROI from customer retention efforts than from customer acquisition marketing (Econsultancy). It’s no wonder that marketers go to such lengths to keep customers happy.
Think you’ve seen all of the ideas for customer retention? Think again. Here are three mind-blowing lengths to which marketers have gone and seen a massive return on investment.
Royal Mail was losing customers who mistakenly thought it couldn’t mail packages over 5kg. So it sent key customers a weighty message —literally. It distributed a metal envelope engraved with the recipient’s name and address. Think it was too heavy on the budget? Quite the opposite. The campaign saw an ROI of 23:1.
As airlines continue to eliminate less traveled routes to slash costs, ANA Airports wanted to keep its Lisbon airport away from the knife. It created a campaign involving a fictitious traveler, John Smith, who sent the airlines handwritten diaries of his travels explaining why he keeps coming back to Lisbon. The diaries incorporated key information such as 75% of Lisbon tourists are repeat visitors, 90% recommend Lisbon to others, and 80% state that it exceeded their expectations. The results? While other airports were losing routes, Lisbon Portela Airport kept 100% of them.
An automotive company had been sending traditional postcard mailings for years. Their ongoing campaigns had good results but not enough to make a real impact on sales revenue. The company wondered what would happen if it made an even deeper investment in direct mail to stand out from its competitors. It replaced its postcard with three individual, interactive 3D mailers. The mailers were triple the cost of the postcards, but the results spoke for themselves. A 300% increase in call volume!
While these techniques aren’t for everyone, they show just how powerful direct mail remains as a tool to retain customers. Contact us to brainstorm creative ways to use direct mail to maintain customer loyalty and keep your customers coming back!
You can download the full One to One Marketing Tip #20 PDF HERE.