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Marketing solutions for
RETAILERS
INSIDE
How to connect
with customers and
grow your business
INSIDE
3 A message from our CEO
Our mission: to help you
6 The power of physical
How direct mail can help move
13 Getting started
with direct mail
move forward and build your retail business forward. Targeting services and
your business. Canada Post partners that
8 Success stories help you connect with
4 Challenges facing How retailers are using your best prospects.
retailers today direct mail.
Attracting and retaining 17 Your direct mail
customers and clients in the design checklist
post-disruption era. Tips that can help you make
direct mail work for you.
2
A MESSAGE FROM OUR CEO
“Our goal is to provide you with
actionable insight you need to
thrive in today’s competitive
retail environment – and we’re
excited to help you move your
business forward.”
– Doug Ettinger, President and CEO, Canada Post
Canada Post is committed to while attracting new shoppers to your your best prospects with our powerful
supporting the growth of Canadian store or e-commerce site? How do you targeting tools, resources and partners.
retailers. We know you’re anxious to get your name out there so that when We’ll show you how direct mail can
move your business forward after the people are ready to shop, they think of help you build awareness for your store
recent and unprecedented setbacks you. How do you get people’s attention and brand. And we’ll show you how
suffered by virtually every sector of the and convince them that you’re offering you can use direct mail to get people
economy. We know you’re looking what they want and need? to your store or e-commerce site.
for new customers who will help you We believe that direct mail – what we Our goal is to provide you with
get back to business. And we know call Canada Post Smartmail Marketing™ actionable insight you need to thrive in
you’re doing all that while facing – is one of the best choices for retailers today’s competitive retail environment
increasing competition. like you. That’s why we created this – and we’re excited to help you move
Marketing will be key. But with so important resource about how direct your business forward.
many options in marketing today, it’s mail can help you overcome the
hard to know what approach will challenges and take advantage of the
deliver the best results. How do you opportunities you’re facing right now.
stay connected with current customers We’ll show you how you can reach
3
5 key challenges
facing retailers today
The retail sector was heavily impacted by recent events, which
included forcing many retailers to close their stores for months. As the
world works through the recovery phase, marketing will be a key to
reconnecting with shoppers. You need to be savvy in order to win
on this new landscape – and it all starts with better understanding it.
4
Take note of these 5 changes
and challenges facing retailers today.
1 4
Disruption New marketing channels
The recent health crisis closed most bricks and While connecting and reconnecting with
mortar retail stores and shifted shopping and customers has never been more important, it’s
buying online – at worldwide volumes forecast also never been more complex. With more
for 5-6 years from now.1 Working from home channels like digital and social to choose from,
has shifted retail category priorities for many, it’s harder to keep up with the best ways to
with home and housewares taking precedence reach your potential shoppers – because each
over products like work apparel. During the decision risks wasting your marketing dollars. If
recovery, buy local has become a mantra in more are buying online, is reaching them only
communities across the country, and new online the most effective approach?
health rules and protocols are impacting the
physical, in-store experience. For retail, it really
5
is a whole new world.
More to do, less time
2
Increased competition and money to do it with
During the recovery, retailers will be operating
Retailers who survived the recent turmoil were
in a time-crunched, volatile environment,
smart, resilient and adaptable. Those same
where every dollar spent affects the bottom
qualities will make them fierce and formidable
line. The solutions for acquiring and retaining
competitors as the economy recovers.
customers need to cut through the daily
clutter and work.
3
Shifting values and needs
Retail consumers had to adopt new habits and
were exposed to different choices during the
height of the health crisis. Many also saw their
incomes significantly impacted. How they spend
and how much they spend – and on what – will
be a significant challenge for retailers to address.
The good news
These challenges are also opportunities that informed retailers can seize. Keep reading. In this resource we’ll show you
how direct mail can be used, targeted and integrated with digital to help you better connect with shoppers you need to
attract in order to succeed.
1. Data sourced from CC Insights, Emarysis 2020, https://ccinsight.org/
5
THE POWER OF PHYSICAL
How direct mail can
boost your business
Direct mail is unlike any other marketing channel: it cuts through the
advertising clutter, puts your retail brand into the hands of potential
customers, and lets them spend time with your product selection
and offers.
STAY TOP-OF-MIND MAXIMIZE TRAFFIC DURING PROMOTIONS
The numbers: When you add direct mail to your digital The numbers: 57% of consumers feel more valued when
campaigns, you drive 39% more attention, 10% higher brands contact them through mail. 79% of Canadians
brand recall and 5% greater emotional response. save print advertising brought into the home, 68% of
us are likely to share that direct mail, and 34% of us
The insight: You’ve got to maximize every opportunity to
always or sometimes display advertising mail of interest
stand out, win people over and bring them to your stores
to us at home.
and e-commerce site. Retailers use direct mail to ensure
past and potential customers have a physical reminder of The insight: That’s a lot of opportunity for sustained
their brand, products, and promotions. brand exposure, reminders of location openings, and
special offers and coupons.
The tip: Use direct mail to give your promotions a boost, get
the word out about new store openings, and encourage The tip: Use multiple channels to support promotions.
repeat business. Complement digital campaigns by incorporating direct mail
with trackable coupons to reinforce your message.
6
DRIVE CUSTOMERS ONLINE
The numbers: 64% of consumers visited a website after receiving direct mail1
and 54% engaged with social media after receiving direct mail.2
The insight: Online ordering and app downloads are critical to your business.
Integrate your mix
Both offer added convenience for your customer, and they also allow you to Did you know that compared
capture valuable data on your customers. with single-media digital
campaigns, integrated direct mail
The tip: Use direct mail to encourage website visits and app downloads. and digital campaigns elicit
significantly more attention?
It’s true. People spend 186% more
EXTEND YOUR REACH time with integrated direct mail and
The numbers: More than 1.9 million Canadians live in apartments or condos display campaigns than display-only
and only Canada Post delivers mail to those addresses. campaigns – that’s 40 seconds vs.
The insight: Many of your high-frequency customers live in apartments and 14 seconds. The trick to successfully
condos. In large urban centres, you’ll find singles, millennial couples and retired integrating your mix is to ensure
boomers in residential towers. items online have the same look,
feel and tone as the items you
send in the mail.
The tip: Get results by using direct mail in a target-rich environment like this.
1. Swiss Post. Comprehensive Mail Study, 2014.
2. Royal Mail MarketReach. The Private Life of Mail, 2015.
7
Success stories
Retailer combines data and
direct mail to convert customers
Results of previous campaigns prompt specialty
tea retailer to reallocate advertising spend.
DISCOVERING THE POWER Its early success with direct mail
convinced DAVIDsTEA to shift a
OF PHYSICALITY
portion of its advertising budget to
Through its first decade in business, Canada Post Smartmail Marketing
DAVIDsTEA spent almost all of its to address two perpetual business
advertising budget on digital marketing.
THE LITTLE BOUTIQUE challenges: cyclical foot traffic
Recently it turned to Canada Post to and ever-increasing competition.
THAT COULD help with a direct mail campaign. Canada Post took it from there.
DAVIDsTEA is a Montréal-based The campaign’s success encouraged
specialty tea and tea accessory retailer another that resulted in a redemption DOUBLE-DIGIT
that carries the largest collection of rate of 40%. Fast forward to the holiday RESPONSE RATES
organic teas and infusions in North season, when DAVIDsTEA leveraged its
America. It also designs tea accessories, own data and Canada Post’s targeting In its fall campaign of 2019, DAVIDsTEA
everything from spoons and infusers to abilities to send samples to customers mailed 20,000 tea samples to customers,
tea sets and travel mugs. who had not made a purchase in as well as a coupon for 20% off their
the last 275 days. That campaign next purchase. The campaign elicited
From its modest beginnings in 2008, more than 3,200 redemptions, or a
the company has been offering great generated a response rate of 17%
and demonstrated the power of 16% response rate, and a return on
selection and unparalleled customer investment (ROI) of 2.07. It also showed
service – a business model that direct mail in converting customers.
how simple and clear messaging can
has clearly worked. Its first store in
downtown Toronto became a
USING DIRECT MAIL produce results. Given its recent success,
DAVIDsTEA plans to conduct more
community fixture overnight, drawing TO DRIVE RESULTS
direct mail campaigns with Canada Post
enough traffic to inspire growth. The Having direct mail as part of your in 2020.
company replicated its model – friendly marketing mix can help you better
service, great selection and quality To learn more about Canada Post’s
connect with customers and their
full range of solutions for
product – to become the largest individual tastes. “Hitting the right e-commerce businesses,
Canadian-based specialty tea boutique people with the right content at the visit canadapost.ca/ecommerce.
in the country. Today, the franchise has right time is critical,” says Jessica Schami,
more than 230 stores in neighbourhoods a Marketing Specialist at DAVIDsTEA.
and communities across Canada and Showing consumers how good their
the United States, and is the most product is beats simply telling them, she
established tea brand in North America. says. “The samples of tea help because “Hitting the right people
The little store that could, did. And it is customers can then taste the tea,” and with the right content at
not done yet. the product speaks for itself. the right time is critical.”
JESSICA SCHAMI
Marketing Specialist, DAVIDsTEA
8Success stories
Retailer uses
direct mail to
gain market share
Nature’s Emporium successfully
promotes new store opening with
Canada Post Neighbourhood Mail™ postcard
THE MAILBOX: THE KEY TO Burlington area to advertise the new For Nature’s Emporium, there’s no
location. The colourful two-sided looking back. “It’s proven that direct
PENETRATE A NEW MARKET
mailing featured two incentive calls mail can work for us and it’s now an
Prior to opening its newest natural to action: a $5 in-store coupon and integral part of our marketing mix,”
and organic health food market in an online contest offer to win a says Dennis. The company is now eager
Burlington, Ont. earlier this year, $250 gift card. to fine tune and test other direct mail
Nature’s Emporium knew it was initiatives going forward, to provide it
venturing into new territory – literally. IMPRESSIVE RESULTS with further insights into its customers.
The new location was more than an TO BUILD ON FOR
hour’s drive from its home base in
Newmarket and other nearby store
FUTURE GAINS
in Vaughan. The company faced a “The results were great,” says Dennis.
challenge: to successfully generate “We saw a 3% conversion rate for the 70% of consumers are curious
awareness of its new location well coupon which we were very happy to find out what’s in their
outside its current established market. with. And, almost 2% of those who’d mailbox,1 and 47% visit a store
received the mailing ended up entering in response to direct mail.2
After years of relying on traditional flyers
the contest.” Just as impressive, nearly
and word of mouth, Nature’s Emporium
15% of store sales at the Burlington
decided to try Neighbourhood MailTM
store were a direct result of the coupon
for the first time.
incentive during the two-week
“We felt that direct mail would offer a campaign. There was also a strong
really good opportunity to get in front
TWO-WEEK-ONLY DIRECT
surge in coupon redemptions toward
of everybody rather than just hoping the end of the two weeks. That meant MAIL CAMPAIGN IN NEW
we’d be found among flyers,” says people had held on to the postcard for NEIGHBOURHOOD
Ryan Dennis, Nature Emporium’s later use and the offer had been noticed
Director of Communications. So the and read. • 1,500 new customers in store
company worked with Canada Post to • Average purchase value maintained
mail approximately 50,000 introductory
postcards to households in the • Nearly 1,000 online contest participants
See how you can reach every mailbox in a specific neighbourhood at
canadapost.ca/smartmailmarketing.
1. Belgium Post. Letterbox Consumer Survey, 2013.
2. Swiss Post. Comprehensive Mail Study, 2014.
9Success stories
Direct mail brings shoppers
back to their abandoned carts
When international beauty brand Sephora
includes direct mail in its retargeting program,
the company discovers personalized print
motivates people to finalize sales.
MORE THAN A PRETTY FACE “Still, we were interested in testing
another personalized omni-channel
Since its debut 20 years ago, approach to increase conversion,” “Canada Post has been a great
Sephora has earned a loyal and partner to work with, enabling us
says Deborah Neff, Senior Vice
committed following. It’s no surprise, to target and test four different
President, Marketing, Canada, personalization tactics to reach
considering the omnichannel retailer at Sephora.
offers 14,000 beauty and wellness clients at various stages of their
purchasing journey.”
products from 200 carefully curated COULD DIRECT MAIL
brands. Customers flock to 400 of DEBORAH NEFF
the company’s stores across North
CONVINCE CUSTOMERS Senior Vice President, Marketing,
Canada, Sephora
America, as well as 600 locations TO REVISIT THEIR
inside JCPenney, for prestige ABANDONED CARTS?
products. Sephora’s Beauty Studios, To answer the question, Sephora RETARGETING WORKS
smaller, stand-alone retail outlets, worked with Canada Post’s expert
provide personalized, one-on-one
– ADDING DIRECT MAIL
partner, Prime Data, to create a control
services including makeovers and group and a test group. Each group
AMPLIFIES THE RESULTS.
mini-facials. The three-tiered Beauty consisted of 13,000 online customers The effect of the personalized direct
Insider program encourages shopping who had recently visited Sephora.ca mail was impressive: The test group had
with increasing rewards as devotees and added products to their cart, but, a 16% higher response rate than the
make more purchases. The community for some reason, didn’t go through control group. Meaning those people
of customers and advocates remains with the purchase. who received the direct mail were more
steadfast because of the Sephora likely to return in-store or online to buy
Twenty-four hours after abandoning
experience, both in-store and online. one of the products they’d previously
their cart, both groups received an
For those online customers, the abandoned in their cart. “While this
email reminding them of the item they
company has a robust digital was a preliminary test,” says Neff, “the
viewed and inviting them to return to
retargeting program designed to results showed that personalization
the site and buy it. The test group
keep them coming back. resonates with our clients and direct
received a second communication,
Cart abandonment is a reality of mail is a potential tactic we’ll consider
a personalized direct mail piece.
e-commerce. Even loyal customers for future campaigns.”
The 6 x 9-inch cards included pictures
visit many of a website’s pages, click To see how Canada Post can help
of top-selling Sephora products and with your retargeting strategy, visit
on multiple products and build big
one item that the recipient had canadapost.ca/smartmailmarketing.
baskets, only to shut down before
abandoned in their cart. The cards
checking out. Sephora monitors those
were mailed within 48 hours of
shoppers and has an effective email
customers abandoning their carts,
strategy in place to re-engage them.
and arrived at their homes within
5 days.
10You can also read
