Smartmail Marketing in the mix helps Staples.ca boost ROI by 425 per cent

Posted on Sept. 21, 2015 by @canadapostcorp in Marketing solutions

The response rate from customers who received a flyer and an email was more than six times higher than that from customers who received an email only.

Dwayne McMulkin, Marketing Manager
Staples.ca

In an effort to increase repeat sales from loyal B2B customers, Staples.ca tested a multi-channel advertising campaign. They found that the combination of AddressedAdmail™ service, now Canada Post Personalized Mail™ service, and email generated over 5 times more sales and increased ROI by 425 per cent compared to email alone.

Background

The world’s largest office products company, Staples operates in every Canadian province and is the country’s leading supplier of office supplies, technology, furniture and business services. With $27 billion in sales worldwide, Staples serves customers in 27 countries throughout North and South America, Europe, Asia, and Australia. The company launched its Canadian online store, Staples.ca, in 2003.

Marketing strategy and challenge

The office supplies market is highly competitive and customer loyalty is difficult to establish and retain. To win customer loyalty and maximize revenue, Staples.ca maintains regular contact with active customers (those who have conducted at least one transaction within the last six months). Typically, the company sends an Addressed Admail flyer to active customers every two weeks and emails them three times a week.

To determine the effect of the Addressed Admail flyers on response rates and revenue, Staples.ca carried out a series of tests to measure the results of using different combinations of marketing material sent by the Addressed Admail service and email.

Solution

Staples.ca worked with Canada Post to create test campaigns, which were sent in two waves to active customers. The campaigns comprised the Addressed Admail service and email, the Addressed Admail service only, email only, and no contact. If a customer purchased from the online store within two weeks of receiving a communication, it was considered a response.

Results

“The results for both waves showed that sending Addressed Admail flyers as well as emails drove customer response rates and revenues much higher than sending emails alone,” says Dwayne McMulkin, Marketing Manager at Staples.ca.

“In fact, customers in the first wave who received a flyer and an email had a 605 per cent higher response rate than those who received only an email. As well, sales from customers who received both a flyer and an email were 544 per cent higher than sales from those who received only an email.”

Results in the second wave of the test were equally impressive. “Response rates were 584 per cent higher for customers who received the flyer and email, compared to those who received the email only,” McMulkin said. “And, ROI was 425 per cent greater for this group.”

As a result of these tests, Staples.ca plans to continue to use the Addressed Admail service in conjunction with email in future marketing campaigns.

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