Outnorth is one of Scandinavia's largest outdoor shops on the web and has a product range that covers everything from skiing and running to hunting.
The business was founded as a small store in Kalmar in Sweden and started with e-commerce on a small scale about eight years ago. PostNord and Robert Ek have been involved ever since and Outnorth now uses PostNord for all its deliveries in Sweden, Norway, Denmark and Finland.
Wanted to communicate in new ways
As account manager Robert Ek has close contact with Outnorth and a few years ago he noticed that they were interested in trying to communicate with their customers in ways other than by email and electronic newsletters
“My job is to identify all the requirements and wishes the customer may have, covering everything from letters to marketing, and as I thought that direct mail could work well in Outnorth’s case, I consulted one of our talented dm-specialists, Daniel Linde,” says Robert Ek.
Tested addressed direct mail
This resulted in Outnorth deciding to test a first campaign with addressed direct mail in December 2015. With the help of their CRM system*, the company was able to group customers into segments down to the product level and could therefore send out a targeted offer to customers who had bought a product from a particular brand during the last three years, but had not made a purchase from Outnorth for the last three months.
The result went far beyond expectations.
“To be honest, I did not think the conversion rate** would be so high, as we all know that when you get a whole pile of adverts in the mailbox it is easy to just throw them away,” says Lars Nyqvist, CEO of Outnorth.
“But we achieved a conversion rate of four percent, which is just as good a result as we usually achieve with our electronic campaigns.”
Continued with direct mail campaigns
Since then, Outnorth has continued with direct mail campaigns and achieved equally good results. And Robert Ek considers there to be a number of benefits with the increased cooperation.
“In addition to the increasing business with this customer, we also get to know the entire company better now that we help them with both logistics and marketing. We have meetings with Outnorth from the screw-and-nut-level all the way up to senior management, and the more we can find out about all their operational activities, the better we can understand their business and thereby help them in the best possible way.”
*CRM (Customer Relationship Management): system for managing customer details.
**Conversion rate: A term that is used in areas such as e-commerce as a measure of the percentage of visitors that carry out an action. The conversion rate is calculated when a company wants to know if its sales activities are effective.