Impressions Don't Build Businesses
Summary
Digital gets clicks. Direct mail gets customers who buy more.
Transcript
The cost per impression is cheaper, right, for digital versus the direct mail, which is true, right? But then if you think about it, cost per impression is cheaper, what is the, you know, you don't build a business based on impression, you acquire new customers, you make them purchase and you retain them and then you make them buy more, right? So then let's forget about the cost per impression. Let's figure out what is the actual cost of acquisition. Customers acquired from direct mail, not only they made a higher amount of purchase, the initial purchase, they also were more frequent buyers. Our observation period is four months. The reason why you want to have four months is that you want it to, if the thesis is that customers that were acquired through mail pieces, because mail pieces are more sensory rich, you know, they can have more information, they linger at home longer, then they should develop a stronger understanding of the brand, right? Within four months, could see already not only they purchased more in the beginning, they also made more frequent purchase. And also, made more categories. they purchased more categories compared to customers who are acquired only through a digital channel, which is consistent with the psychological theory that customers that saw the direct mail, they have a better understanding of the entire product portfolio.
