Discount Store Direct Mail Success Story

Discount Store Direct Mail Success Story

Customer Objective

A discount store client with over 650 locations was looking for a cost-effective solution from current solo program to promote their grand opening pharmacy stores.

Campaign Strategy

  • Use client’s customer database to find look-alike households for targeting and to tailor varied consumer messages

  • Segment households based on current and potential customers

  • Mail Mspark’s Impact Image Postcard with personalization

  • Offer store gift cards to potential customers for transferring prescriptions and reward current customers to promote loyalty

  • Establish a mailing frequency to announce the grand opening in advance, announce the day of the opening and continue to mail after the opening to mailing customer interest

Campaign Results

0%
Redemption for current customers 

0%
Redemption for new customers 

$0
Almost $5 in sales for every $1 spent on advertising
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Discount Store
Industry Trends

  • Total industry revenue is $66 billion

  • The discount store industry has performed strongly over the past five years

  • While it was uncertain if the industry would remain in high demand following the economic recession, industry operators have made several changes to their operational strategy in order to sustain growth rates

  • A substantial platform for change within the industry has been the customer base; while the industry has historically targeted exclusively low-income earners, this consumer pool has expanded in recent years to include middle-class shoppers and even some high-income earners

Sources: IBISWorld 2017

Discount Store Industry Trends

  • Total industry revenue is $66 billion

  • The discount store industry has performed strongly over the past five years

  • While it was uncertain if the industry would remain in high demand following the economic recession, industry operators have made several changes to their operational strategy in order to sustain growth rates

  • A substantial platform for change within the industry has been the customer base; while the industry has historically targeted exclusively low-income earners, this consumer pool has expanded in recent years to include middle-class shoppers and even some high-income earners

Sources: IBISWorld 2017

Discount Store Advertising Opportunities in Rural America

  • More discount stores are offering expanded grocery offerings to compete with supercenters

  • Rural consumers are 29% less likely to have gone to a strip mall in the last 4 weeks – meaning they might prefer standalone discount stores

  • Rural consumers are:

    • 77% more likely to have shopped at Dollar General Stores in the last 4 weeks
    • 5% more likely to shop at Dollar Tree
    • 42% more likely to shop at Family Dollar Store in the last 12 months
    • 32% more likely to shop at Walmart
    • 6% more likely to shop at Payless

Source: AdMall 2017, Fall 2016 NHCS Adult Study 2-Year

How Do I Find My Best Rural Discount Store Customers?

Our Consumer Analytics team are highly skilled in the science of micromarketing. What does that mean? Micromarketing is another way of saying that we develop a marketing strategy in which your direct mail advertising efforts are focused on a small group of highly-targeted customers. This gives your message the best chance possible to be seen by the right customers at the right time.

Direct Mail’s Influence on Discount Store Customers

  • 77.8% of price-conscious shoppers indicated an ad/coupon in their mailbox led them to take action in the last 12 months
  • Discount shoppers are 4% more likely to look for advertising inserts in their mailbox than they would in a newspaper, 29% more likely than on the internet, 104% more likely than in-store
  • According to the DMA, direct mail response rates are on the rise – last year average response rates were at 5.3% – a 43% increase from the previous year and the best it’s been in the last 13 years

Source: AdMall 2017, Prosper Insights & Analytics 2017, 2017 DMA Response Rate Report

Do You Have Any Questions About How Direct Mail Can Grow Your Business?

If you have any questions about how direct mail can grow your business, we would be happy to answer them. You can call us at 877-620-6283 or select GET STARTED TODAY to fill out our form.

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