Customer Acquisition and Retention | Solutions
New Retailer Customer Acquisition

Objective/Problem
Choice Pet Supply launched two new stores in Long Island, NY with high traffic and sales during their grand opening and the next few weeks.   However, initial sales momentum deteriorated.  While the stores had created a core following of repeat customers, they had barely scratched the surface of local market awareness and penetration.  Entrenched big box pet chains and one very large independent   increased couponing and local advertising spending.   How could Choice Pet Supply affordably acquire new customers within a 5 – 7 mile radius of each store, without matching competitive spending?

Strategy
•    Generate brand and store location awareness among local pet owners through a targeted, affordable channel
•    Use and incentive to draw store traffic
•    Convert visitors to purchasers
•    Capture visitor and customer data for on-going conversion and retention efforts

Solution Tactics
Created a branded, high value offer redeemable in-store for a one month period
Targeted distribution using USPS Every Door Direct Mail (EDDM) tools to affluent households with children under 18 yrs. of age in zip codes within a 5-7 mile radius around each store
In-store loyalty program, bounce-back coupon encouraged capture of customer data
Used EDDM tools to track delivered mail, conversion metric = purchase transactions

Results
Profitable, targeted channel
•    New sales – $6543
•    Net profit  – $1400 – mailing was profitable on first attempt
•    New customers 174, all added to email list
•    Extremely high conversion rate of 3.5%