This Place is one of the leading shops for natural cosmetics. The brand worked hard to earn this position and its loyal customer base by repeatedly focusing on its brand core: self-care is essential for customer wellbeing.
But like all e-commerce companies, This Place faces the ongoing challenge of turning one-time buyers into returning customers and keeping existing customers active. That requires regular touchpoints with customers.
The problem: declining open rates and more difficult retargeting
At a time when email inboxes are regularly flooded and customers face information overload on social media, This Place experienced declining email open rates and deliverability problems. The iOS app tracking updates also made social-media retargeting more difficult.
In other words, it became increasingly difficult to reach customers at all. More and more customers made only a single purchase, which increased acquisition costs.
The solution: direct mail reaches almost 100% of customers
At the same time as launching a new product line, This Place chose an innovative strategy: a reactivation campaign via postcards with PostPal. The campaign targeted customers who had not purchased for at least 90 days. A time-limited voucher was intended to increase urgency and encourage action.
The campaign
The postcard stood out through a premium, elegant, yet clear and uncluttered design. The logo and bestselling products were placed prominently to create immediate recognition. A striking badge communicated the 20% saving potential through the voucher. The headline “We Miss You” made it clear that the brand wanted to win customers back. To create a personal connection, customers were addressed by first name on the back.
Results
The results speak for themselves: an impressive conversion rate of 12.1%. In addition, 12% of contacted customers purchased even without using the voucher, a phenomenon often seen in direct-mail campaigns. This led to an outstanding ROI of 1,888% for the campaign. And the best part: the reactivated customers are now very likely to make further purchases in the future, which sustainably increases profitability.
Outlook
With the PostPal app, This Place can now automate the campaign very easily and regularly achieve high ROIs. Additional postcard campaigns to accompany product launches are already being planned. The focus will also be on retaining existing customers through targeted measures so customer loss does not happen in the first place.