Making a sale is great… but it’s repeat business that dictates profitability and brand affinity. Without the second sale, your business will struggle to be profitable. PostPilot is a reliable way to generate repeat business.
So you’re ready to dive into postcard marketing (smart!).
If you don’t already have a campaign you can import, you’ll first want to build out a very simple campaign. And you probably want to start with the two biggest problems facing most ecommerce businesses: abandoned carts and first-time buyers.
The One-time Buyer Problem
This is something a lot of ecommerce retailers face, especially ones that aren’t subscription businesses.
Let’s say you're running marketing at Patagonia and you get your first order from a new customer. The average revenue off that order might be around $100. But you also need to factor in the COGS to secure the product, such as sales and warehouse costs. So let’s say the revenue off that sale is $50.
But you haven’t factored in the cost of acquisition. On a typical prospecting campaign, that can be high—around $40—leaving you with a gross profit of just $10, or 10%. If you subtract out whatever you're going to pay yourself, your team, and for rent, that quickly goes to zero. This is the first-time buyer problem, and it’s why a lot of ecommerce companies have trouble scaling: They don't make a lot of money on that first order. The solution is simple: Get your customer to make a second purchase.
A second purchase with a much lower customer acquisition cost (ideally zero) fetches you a lot of gross profit. You can then take that same customer and get him or her onto your email list, a Facebook marketing list or a postcard list. You're then left with a much higher gross profit on the second order.
How do you get that second order? You send out a campaign that pushes products that are cross-sold or related items to their first purchase. Patagonia has been sending out a “15% off your next purchase” postcard campaign for a while, and it's done extremely well for them in driving profits.
Using postcards to address this problem keeps mailing costs low and the process automated. Setting it up is simple: Download PostPilot, create a second purchase campaign, and set it up to automatically send a coupon or related item to every new customer, 30 days after their first purchase. Watch the ROI over time and adjust as needed.
The Abandoned Cart Problem
On average, about 70% of carts get abandoned—left sad and hanging, used as a wishlist or to check pricing somewhere else. Ultimately forgotten.
Many ecommerce insiders know that the solution is a cart abandonment campaign. These campaigns work for almost every ecommerce retailer, and data show that you can get a 10-12% lift in return customers.
Bonobos, a men’s clothing brand, solved their abandoned cart problem with a simple email prompt: “Hey, you forgot something! Come back and complete your purchase.”
Dollar Shave Club, which was bought by Unilever in 2016, made waves when it started running abandoned carts through their Facebook marketing.
And then there’s Boxed, the company that sells food and home supplies in bulk. A handful of years ago, Boxed was experiencing a high cart abandonment rate. Instead of turning to Facebook or Google ads or even email, they rolled out their abandoned cart promo via a postcard. They did really well with it.
Postcard marketing changes the marketing game. As long as you have a physical address for your customers, you can reach out to them via postcards. With PostPilot, it can be easier to set up than a Facebook or AdWords campaign.
The PostPilot app plugs into your Shopify account, pulls out your customer data, and allows you to design, build and send automated postcard campaigns. Set the campaign up once and then they run in the background. And if you’re not on Shopify, that’s OK too—you’ll just have to manually upload your customer lists. But you still get to see the dollars pour in.
You worked hard to get the sale. Now you can send a hyper-targeted, automated, personalized postcard to get your customers to come back and purchase again and raise your customer LTV.
Step 1: Integrate PostPilot with your store.
(Import all your customer data with 1 click.) The first step is to integrate your store with PostPilot to ensure that your customer data is available to you for segmentation when you want to run your campaign. You can also integrate with Klaviyo and import your lists and segments if you use Klaviyo as your email provider. For those without Shopify or Klaviyo, you can upload your lists in a CSV file.
Step 2: Create Your Postcard
(It only takes a minute.) Choose one of our free templates, upload your own design, or take charge of our user-friendly design tool to create impressive, on-brand mailers for every occasion. Easily insert customer names and other customer data for more for powerful 1-to-1 personalization. Every professionally printed, full-color card comes on high-quality 120-lb stock with UV coating. (In other words, they’ll be wowed.)
Step 3: Setup your Workflows & Automations
(Unique one-offs + fully automated campaigns.) Segment customers for your send. You can target customers based on Shopify Tags, date filters, purchase history or existing segments in Klaviyo (if you have it). You can choose between a one off campaign or setting up automations that automatically send perfectly-timed promotions that boost your bottom line and increase customer loyalty.
Step 4: Send your Campaign
(Unique one-offs + fully automated campaigns.) Finalize your campaign and send it and then track and wait for the conversions. Campaigns can be tracked for up to 120 days and you can monitor sales generated, how many cards were sent, how many orders you received and many more insights allowing you to make informed decisions on your campaign.
"Not only is the Post Pilot team responsive and experts in their market position, they are there to guide you to drive the best results. We’ve worked with them on numerous campaigns and continue to as they help us reach our consumers in direct ways."
Send delightfully simple, effective one-off + automated campaigns. The result? More loyalty, sales, and profits out the wazoo. Sign up for our newsletter to get tips, tricks and updates on improvements we are making to PostPilot.
We are here to help. We've got answers to all hesitant queries you might have about PostPilot and Direct Mail.
How do I know if direct mail is a good option for me?
The best way to measure the effectiveness of direct mail is by testing it. But there are some common tell-tale factors, many of which come down to your product/service, revenue model, lifetime value, and customer acquisition costs (current and tolerance). We find that companies with a high cart value ($50 and above) and repeat customers get the best results.
If you are an ecommerce store running on Shopify, then PostPilot needs to be an essential part of your marketing mix. Statistics show that your customers will spend 25% more when you combine digital and direct mail marketing. If you can create an email campaign, you'll have no problem creating an effective postcard campaign.
Can I track the results of my campaign?
Because of our native integration with Shopify, we are able to track each sale that comes in as a result of your campaign. We also check the addresses and remove any that we find aren’t valid, saving you money on each campaignorder.
What kind of results can i expect?
Customers who use Direct Mail in tandem with their existing digital strategies getgets 28X better engagement than email and ~10X better response rates. Ecommerce stores tend to see a conversion rate of between 2% to 4% on each send. To give an example, 2 of our customers TruDog and Bulletproof had ROIs of 838.22% and 1892.16% respectively.
What are estimated delivery times?
All orders are sent to be shipped out 24 hours after being processed, and take 4 to 6 days to arrive at their destination. For international orders, orders can take anywhere from 9 to 13 days.
I’m new to this. Do you have a customer support team to help walk me through the process?
Yes. We have a customer success team that will be happy to take a look at your business and walk you through the best way to leverage direct mail. They can also help you set up your first campaign and make sure you are set up for success. Schedule a call with our customer success team today.