Niche Grocer Uses Direct Mail, and the Difference in Results is Like Apples to Oranges
Valpak partnered with a specialty food grocer / regional franchise to design a marketing strategy that measured the effectiveness of a direct mail postcard campaign targeted to current grocery store customers and prospects of high-quality food items.
The grocery chain supplied its current client list, and Valpak identified the prospects by profiling its existing customers and appending that index to routes and stores within 5 miles of 3 of its specialty food store locations. Valpak mailed 50,000 postcards for each location with strong offers for both audiences: $5 off $25 for current customers and $20 off $50 for prospects.
10% of postcards were redeemed, with over $1 million in total sales. The offer to current customers outperformed prospects at all 3 locations by over 50%! However, potential customers had an 8% redemption rate, resulting in nearly 10,000 new customers for the grocery retailer.
The results of the mailings and growth in new customers confirm that offers and targeting are proven to deliver next-level returns for grocers (particularly specialty stores). The marketing campaign resulted in a higher average basket at checkout and a better customer experience that produced a lift in sales and a 4:1 return on ad spend for the specialty grocer’s investment.