"People who know Loehmann's love Loehmann's," said Kelly. "The challenge is making more people aware of our brand."
How Email Fits Into the Mix
Direct mail and email are the two biggest and most profitable marketing channels for Loehmann's. Direct mail is able to reach all of the customers and prospects on the company's list, while email reaches those that the company has an email address for, which is about half its database, Kelly said. Loehmann's relies on constant testing — mail/holdout, offers, markets — to find the optimum return on investment for its marketing spend. Direct mail consistently outperforms email in terms of response, said Kelly.
Acquiring email addresses is a major priority at Coach. There's pressure from management to eliminate direct mail campaigns because of cost, said Fiefer. The retailer is constantly testing to see which customers do and which don't need to be sent direct mail to drive purchases. For online orders, attribution is given to the last click, but when a consumer has been sent a direct mail piece as well, the issue of which marketing channel gets credit for the sale becomes a little more troublesome.
Coach has begun personalizing its emails based on past shopping behavior. For example, if a consumer has come to its website and looked at jewelry, they're going to receive an email highlighting the retailer's jewelry offerings. Personalized emails have proven quite successful for Coach, as has retargeting. In fact, retargeting has become one of the retailer's top customer acquisition channels, said Fiefer.
OneStopPlus.com has also found the positive effects that retargeting can have on conversion rates. After some initial worry that the practice was likely to draw privacy complaints from its customers, the retailer noticed several other companies using retargeting, so it decided to give it a try. It hasn't been disappointed by the results, said Urvina.