Crabtree & Evelyn Revamps Loyalty Program, Boosts Direct Mail Use

Posted on

Bath and body products retailer Crabtree & Evelyn is hoping an aggressive customer contact strategy and an updated loyalty program will result in the sweet smell of success.

At the heart of its re-energized customer focus is "Platinum," a loyalty program the company launched just over a year ago to replace its "Preferred" scheme. For a five dollar entry fee, members received 20% discounts on merchandise during the first week of each month.

What insight had the company realized in return? Not much, according to Tom Woodside, Crabtree & Evelyn's new vice president of marketing and ecommerce, "There was no analysis," Woodside says. "It was a sales-oriented loyalty program. It wasn't connected to the ecommerce database."

This is no longer the case. Crabtree & Evelyn has brought in direct marketing agency 89 Degrees, and the past holiday season saw a suite of offer and channel tests aimed both at existing and lapsed program members.

The tests included a three-piece direct mail campaign. Roughly 100,000 current and lapsed program members received one mail piece timed right before Thanksgiving, one on Thanksgiving and one during the December shopping season. Within these, Crabtree & Evelyn also tested three different sets of creative designs, such as a variety of discounts, fragrance peels and formats ranging from self-mailers to postcards to catalogs.

Historically, the company had leaned toward "20% off all merchandise" offers. Early analysis from 89 Degrees indicates the strongest performer in the November-December test was a $10 off a purchase of $35 or more structure.

"Money [in a solicitation] always works better than a percentage off, and it has a threshold," says Woodside. Additionally, consumers react better to dollar amounts in marketing pieces. "It's tangible," Woodside adds. It didn't hurt that the piece presented the offer in the form of a tip-on card designed to look like a gift card.

Best of all, the promotion was return-on-investment friendly. While $10 off a $35 purchase is roughly a 29% discount, most customers spent around $60 when redeeming the card, pulling the discount rate down to just under 17%.

Woodside notes that the sales levels were likely buoyed by a concurrent gift-with-purchase program which had a $75 threshold.

Crabtree & Evelyn's next step is to work further with 89 Degrees and refine a set of incentive programs and communication efforts to segmented customer buckets within Platinum.

"Our broad goals are increasing sales by driving greater purchase frequency among loyal customers," Woodside says. There's a lot of potential to boost sales: While top customers make 10 purchases a year, average purchase frequency is only one and a half purchases every 12 months.

Look for the company to increase its use of direct mail to its loyalty program participants. Traditionally, program members received communications twice a year—around Mother's Day and Christmas.

"The new plan is to use direct mail as a tool for the customers that best respond to it," says Woodside. In that, Crabtree & Evelyn's base may be better tuned to it than some: Buyers tend to be mature women who are familiar and comfortable with direct mail. Furthermore, the company's loyalty program database has email address coverage for only about half of its members.

But even this will change, if Woodside gets his way. Crabtree & Evelyn is becoming more diligent about requesting email addresses upon signup. As part of its prospecting strategy, it is placing a greater emphasis on point-of-purchase registration, along with in-mall events such as sampling and intercept programs. And its Web site moved a sign-up solicitation to a more prominent position.

More

Get Content Like This Delivered to Your Inbox

Related Posts

Chief Marketer Videos

by admin

Chief Marketer Awards

Fusion Marketing - Gold Velcro Industries - Gold Pringles - Gold Bud Light - Gold Bud Light - Gold Target - Gold Coca-Cola - Gold Coca-Cola - Gold HISTORY - Gold Denny’s - Gold Ford Motor Co. - Gold Cottonelle - Gold Intel Corp. - Gold Intel Corp. - Gold Miller High Life - Gold McDonald’s Corp. - Gold Poland Spring - Gold REI - Gold Game of Thrones - Gold Kingsford Charcoal - Gold Pernod Ricard USA - Gold Breathe Right Nasal Strips - Gold Lincoln Motor Co. - Gold Coca-Cola - Gold Mike’s Hard Lemonade - Gold National Football League - Gold Google Asia Pacific - Gold Piper-Heidsieck - Gold 2014 Show Your Joe Campaign - Gold Nike - Gold Cîroc Ultra Premium Vodka - Gold Kmart - Gold Kmart - Gold Coca-Cola - Gold Cotton Inc. - Gold Nike - Gold Malibu Rum - Gold Hostess Brands LLC - Gold HBO - Gold Prevacid 24HR - Gold Samsung Mobile USA - Gold Cîroc Ultra Premium Vodka - Gold Frito-Lay and PepsiCo - Gold Hewlett Packard Co. - Gold FX Television Network - Gold Captain Morgan - Gold American Express OPEN - Gold HBO - Gold Corona Extra - Gold AT&T - Gold World Vision - Gold Gillette - Gold Pantene - Gold Porsche - Gold Duracell - Gold Corona Extra - Gold Microsoft - Gold Cottonelle - Gold Chicago Shakespeare Theater - Gold HBO - Gold Crown Imports - Gold Samsung Mobile USA - Gold The Clorox Co.
 - Gold Pepsi Co. - Gold Oreck - Gold Jockey International - Gold The Art Institutes - Gold Monster Worldwide, Inc.
 - Gold Pepsi Co.
 - Gold HISTORY - Gold MillerCoors - Gold Time Warner Cable - Gold Frito-Lay - Gold American Express OPEN - Gold AT&T - Gold MillerCoors Foster’s - Gold Microsoft Windows - Gold ConAgra Foods, Inc.
 - Gold Coca-Cola - Gold Nestlé - Gold Ford Motor Co.
 - Gold

Chief Marketer Top Shops

TRCO MARKETING WUNDERMAN VERTICAL MARKETING NETWORK UPSHOT TWO/TEN TRACK MARKETING GROUP TPN TIPTON & MAGLIONE TIC TOC TEAM EPIC TEAM ENTERPRISES TEAM DIGITAL PROMOTIONS THE STRATEGIC AGENCY SWITCH SOURCE MARKETING SOHO EXPERIENTIAL SLANT SCOUT SPORTS & ENTERTAINMENT RYAN PARTNERSHIP RUBIK MARKETING REVOLUTION RE:FUEL AGENCY REDPEG MARKETING RED MOON MARKETING PSE-PACKAGED SPORTS AND ENTERTAINMENT PRO MOTION PRIZELOGIC POWERPACT PGW EXPERIENCE NEXT MARKETING NATURAL SELECTION PROMOTIONS MOMENTUM WORLDWIDE MKTG MIRRORBALL MICHAEL ALAN GROUP MASTERMIND MARKETING MATCH MARKETING GROUP THE MARS AGENCY MARKETVISION MARKETING WERKS THE MARKETING STORE MARKETING RESOURCES MARKETING LAB THE MARKETING ARM MARKETING ACTIVATIONS GROUP MARDEN-KANE LIVE NATION MEDIA & SPONSORSHIP LIKEABLE MEDIA LEGACY MARKETING PARTNERS LEADDOG MARKETING GROUP LAUNCHFIRE LAGARD´ERE UNLIMITED KICKING COW PROMOTIONS JACK MORTON WORLDWIDE INTERACTIONS THE INTEGER GROUP INSPIRA MARKETING IN MARKETING SERVICES IC GROUP HMT ASSOCIATES, INC. HELLOWORLD GROW MARKETING GOOD SOLUTIONS GROUP GOLDNFISH MARKETING GROUP LLC GMR MARKETING GEORGE P. JOHNSON GEOMETRY GLOBAL GENERATION Z MARKETING GAGE MARKETING GROUP FUSE, LLC FORMULA STREET INC. FLUENT FCBX FCB/RED FAME ESCALATE THE ELEVATION GROUP EASTWEST MARKETING GROUP DON JAGODA ASSOCIATES DEPARTMENT ZERO CONCEPT ONE COMMUNICATIONS COLLABORATIVE MARKETING GROUP COLANGELO CATAPULT CARDENAS MARKETING NETWORK BRANDFORCE BRAND CONNECTIONS BLUE CHIP MARKETING WORLDWIDE BFG COMMUNICATIONS BECORE BDA ATTACK! MARKETING A2G ARC ALL TERRAIN ALLIED INTEGRATED MARKETING ALLIED EXPERIENTIAL ALCONE ACTIVENT MARKETING, LLC THE A TEAM