How BDEX helped attract almost 25,000 new consumers, and a potentially huge new revenue stream, to a pet supply chain
A major pet supplies retailer brought in nearly 25,000 new customers and about $740,000 in revenue by turning to BDEX and its data platform to draw pet owners away from the competition.
The retailer came to BDEX with a problem: How to bring in new customers who were shopping at other brick-and-mortar stores or, increasingly, online. Their industry has some online powerhouses, like chewy.com, says BDEX CEO David Finkelstein. It’s quite easy for someone to just order online and not go into their store.
Offering a premium retail experience
So, what did this retailer do to differentiate itself from its online competitors? The first goal was to focus on customer service and providing shoppers with an exceptional experience. Plus, they stressed something that no eCommerce company could offer: the chance to take their furry friends shopping with them.
The stakes are high: In the U.S. in 2018, over $72.5 billion was spent on pets, and this was up about 3 billion from 2017. It’s estimated that by the end of this year, Americans will spend more than $75 billion on their pets. And while that’s certainly a ton of money, some businesses are having a hard time getting it, namely, brick-and-mortar stores.
Getting customers to make that first visit
Offering amazing in-store service to both people and their pets was a good start, but that didn’t solve the problem of actually getting them to visit in the first place. The issue is that, in order for the customer to even know that that exists and experience what they have, you have to get them to make the first purchase, says Finkelstein.
BDEX applied its people-based marketing approach to not only help the company reach new shoppers but to then turn them into regular customers.
Data to the rescue
To find these customers, the retailer used the BDEX Data Exchange Platform along with geofencing to find customers who had shopped at competing stores within a 3-mile radius of their 450+ outlets. The data were obtained from retail point-of-sale systems and from online purchases, matched with geofencing data to pinpoint their proximity to stores.
That may sound complex, but it’s actually pretty simple, Finkelstein says. Basically, the platform does all the work. All we really need to do is identify the eight segments that define who the target consumer is that they want to reach.
A very profitable outcome
In total, 1.3 million consumers were identified. The retailer then embarked on a direct-mail campaign that sent everyone in that target audience a postcard with a 15% off coupon. So, instead of the traditional approach of blanketing media outlets with generic ads, BDEX enabled the retailer to focus only on those nearby who had purchased pet supplies.
The results were impressive: Almost 25,000 of those coupons were redeemed, and the average purchase price was $30. Overall, the campaign brought in more than $740,000, which was 28 times greater than the initial data investment of $26,000. And that return will only grow if these new people keep coming back. The interesting part is, and I don’t know enough about the lifetime value of a customer, but this probably turns into all kinds of revenue, says Finkelstein.
Pet supplies and beyond
The marketing firm for the pet supplies company was so happy with the results, many of its other clients are now working with BDEX. These include leaders in several industries, such as auto supplies, gas, and furniture. The beauty of the BDEX data platform is that it can help clients achieve genuine human connectivity, and new revenue, over a wide range of verticals.
To discover what we can do for your business, contact us and a representative will get in touch.