The January 2009 issue of our ‘Sample of the Month’ direct mail case study features our client Devachan, a salon and spa that caters to curly-haired women.
The story centers around how they used a simple coupon self-mailer to generate an extra $94,000 in revenue in 2 months.
The 4-color self-mailer measures 8″ high by 3.5″ wide and folds open to 8″ high by 7″ wide. When open, the right side contains 3 perfed coupons: $20 off Devachan Hair, $20 off for Devachan Spa and 10% off Devachan products.
—> Click Here For Pictures
Devachan started producing these coupon self-mailers two years ago to try to jump start their holiday sales. They are sent out to their customer database the beginning of December and the coupons don’t expire until January of the following year. We handle the printing and mailing portion of the projects.
The idea was simply to send out eye-catching, inexpensive coupon mailers to generate extra revenue all year long, especially in the months of December and January.
The first mailer went out in December of 2007 and the second one went out in December of 2008. Furthermore, per our recommendation, we applied our Soft-Feel coating to the second mailer to give it a nice, velvet finish.
From late December 2007 to January 2008, 312 coupons were redeemed with an average order of about $74 resulting in $23,000 in revenue.
From late December 2008 to January 2009, 1,275 coupons were redeemed with an average order of about $56 dollars resulting in $71,000 in revenue. The large jump in coupon redemption is from people ALSO using the previous coupon before it expired.
So the 2 mailings generated $94,000 in revenue in 2 months with project costs that totaled only $21,000, which includes postage. And the $94,000 doesn’t even factor in revenue generated from the coupons last year between holidays!
Obviously, results like this aren’t typical, but here is what we think is important to mention:
- If it’s possible to promote your product or service with coupons, you should at least test coupon mailers. For retailers, this is a must.
- The results above prove that customers pay attention to expiration dates. By using a 1-year expiration period, Devachan was able to get a double hit this holiday.
- The economy this holiday was likely the cause of the reduction in Devachan’s average order per sale, but the mailer still managed to bring in a flood of coupon redemptions. Did the Soft-Feel coating help? It’s hard to say for sure, but it probably caused more people to at least fold open the piece to reveal the coupons.
If you would like us to send you samples of the self-mailer featured in this case study, please send your address to: ryan (at) ballantine.com