So you are ready to dive into postcard marketing? Very smart. Now you are asking yourself: where do I start? Our tip: start with a simple and highly effective campaign: convert your first-time buyers into long-term customers.
The one-time buyer problem
Customers who buy once and then never come back are a problem many e-commerce merchants know well. The share of one-time buyers among all customers is often between 50 and 80%, which makes growth incredibly difficult for many companies.
A simple example: assume you are responsible for marketing at konivéo and receive your first order from a new customer. The average revenue from this order is €50. After deducting costs for goods, payment and logistics, you have €25 left.
That does not yet include customer acquisition costs. In a typical campaign in a competitive environment, these can be high, around €20 in our example, leaving you with a contribution margin of only €5, or 10%.
If you then deduct the costs for your team and yourself from that amount, it quickly moves toward zero or even becomes negative. The first order simply does not generate enough money. That is the one-time buyer problem. The solution is simple: get your customer to make at least a second purchase. On a second purchase, you have a much higher contribution margin thanks to significantly lower customer acquisition costs. You increase profit through repeat buyers. You achieve this by putting new customers on your email, Facebook marketing or postcard list and addressing them there.
How do you get this second purchase with PostPal? Send a campaign that promotes products that are repeat or complementary purchases to the first purchase. For some time, konivéo has been sending a postcard campaign with the slogan “20% off your next purchase”, and it has helped the brand increase profits very effectively. With an investment of €3,569, they generated €39,733 in revenue.
With PostPal, you can automate this process. You define the segment of first-time buyers through Klaviyo, a CSV upload or an API call and set up a campaign that automatically sends a postcard with a voucher around 30 days after the first purchase. The PostPal Shopify app gives you repeat-purchase reports and creates the matching voucher codes. Monitor ROI over time and adjust it when needed.