CASE STUDY: Shop Direct Group - Very.co.uk
Provided by Royal Mail MarketReach
Engaging with fashion conscious shoppers.
What was the Challenge / Background of the Campaign?
With customer response rates falling, Shop Direct needed a new way to engage with fashion conscious shoppers looking to improve their wardrobes.
What was the Campaign Objective?
To segment prospects to talk to them with highly personalised, impactful, relevant messages in order to reinvigorate credit customer acquisition. Shop Direct created 'Love Your Wardrobe', a targeted, multichannel campaign designed to help new customers solve their fashion dilemmas and fall in love with their wardrobe again.
What was the Solution?
The campaign involved creative and timely execution of mail and digital communications. Prospects were sent a launch email inviting them to take an online style quiz. Their answers gave insights into their shopping behaviour, favourite shops, favourite purchases, attitude to fashion & influences. The prospect pool was then segmented into three attitudes based on these insights: style safe, chic style hunter or fashion forward. This calculated their level of fashion confidence and enabled Shop Direct to send a personalised direct mail pack revealing their style personality.
What were the Results?
Love Your Wardrobe created 12,667 new customers, exceeding targets by 22%, at a time when response rates were falling. And the targeting delivered a 20% reduction in cost per credit customer. With an average first-order value per customer of £165, this was an initial return of over £2.5m for an ROI of £4.76. But, taking the average lifetime value of a Very.co.uk customer into account, total ROI is expected to be more than four times that amount.