In fall 2015, the e-commerce company NordicFeel decided that it wanted to do something new in order to actively reach out to its customers. Until then, the company had basically just existed online, and sales and customer communications had been handled digitally. There was just one problem: The customers were losing interest.
Email not efficient any longer
NordicFeel’s CEO, Anders Sjöberg, had noted over the course of several years that the effectiveness of email as a channel of communication for reaching existing customers was decreasing. The email opening rate was steadily falling, some customers did not want to receive emails at all and NordicFeel needed a new way to establish contact.
PostNord Insight was therefore contacted. Access was granted to certain parts of NordicFeel’s customer database, via which PostNord Insight could identify potential twin customers* and also geographical areas of particular interest. Test mailings were carried out and a campaign involving addressed direct mail to existing customers and twin customers and unaddressed direct mail to residents in selected areas was initiated.
“This was the first time we had conducted direct mailings on such a large scale. I thought the addressed mail to existing customers and twins would generate most interest, we basically only tested the unaddressed approach because it was a relatively cheap way to reach many people in the desired area,” says Nordic Feel CEO Anders Sjöberg.
Unaddressed mail was more effective
However, the results of the campaign showed that the unaddressed mail was more effective. They received the highest ROI* and constituted the more successful approach in terms of generating responses from the most people.
“I was very surprised about how well it went,” comments Anders Sjöberg.
The campaigns were followed up with new PostNord analyses that showed NordicFeel how it can look when a potential customer goes from being just potential to becoming one of the company‘s most profitable customers. With clear segmentation and an understanding of what triggers the various customer groups, NordicFeel could then choose what to offer the various customers in emailings, and also which of these should be followed up with text messages and which should receive physical direct mailings.
The effect was immediately noticeable
The emailngs, containing targeted messages, were sent out before the summer, and the effect was immediately noticeable: Sales of the products covered by the mailings increased by 13 percent.
NordicFeel’s CMO Tobias Mattsson comments:
“We can now stop taking decisions based purely on our own experiences, and instead look at how customers perceive what we do. This paves the way for completely new strategies.”
“The next step is to develop a life-cycle program, i.e. a program that shows which customers come in where, and how and when communication should be established with them.”
PostNord Insight‘s business development consultant Petra Björkeson is also satisfied with the progress being made:
“When we did the post-analysis of last fall’s campaigns, we clearly identified how we could add further value to NordicFeel by utilizing PostNord’s analytical capabilities and tools to generate insight and thereby increase the relevance of customer communication in direct channels. This immediately provided a measurable effect. But NordicFeel is still just starting to develop its customer lifetime value strategies. It’s very inspiring.”
* Twin customers are customers that are similar in various ways to the company‘s existing customers and therefore have great potential to become future customers.
** Return on investment