growthletter #03

+64% Retention Rate with Handwritten Postcards

How we used handwritten postcards to create an unforgettable shopping experience.
 

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Business Partner

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Shopify
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Shopify
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The article you are reading is the 3rd edition of our Growthletter, the newsletter where we publish advanced e-commerce-themed strategies every week.

Hello,

In this article we will look at two topics together:

  • First of all, I’ll explain how and why it is important to create an unforgettable shopping experience.
  • Then we will see a case study of an e-commerce where we used handwritten paper letters, and we obtained a +64% increase in the conversion rate.

(Yes, you read that right, “paper letters” and “handwritten”; words that may seem absurd in the world of marketing automation)

Have you fastened your seat belts? Ready, set, go!

The main concept from which I would like to start is:

By now people no longer just buy products, but buy:

  • Experiences – the sensations they feel before, during and after the purchase.
  • Transformations – the result they will get with that product after using it.


Understanding this is of fundamental importance for an e-commerce.

Without the complete application of this concept, your e-commerce is doomed to fail. I tell you outspoken.

With my agency, we take care of creating unforgettable shopping experiences.

To do this, we divide and measure the experience into 3 phases:

  • Onsite experience – the user experience on the site, where you go to intervene with CRO and UX/UI activities.
  • Product experience – the experience from the moment you receive the product, from the unboxing to the actual use of the product.
  • Offsite experience -the experience that the user goes through with all our off-site communications (emails, text messages, paper letters, etc.). In the e-commerce world this experience is closely connected with marketing automation and customer care.

 

But how do you create unforgettable experiences?

“An unforgettable user experience is perfect in every point”

WRONG

Scientific research has shown that in remembering an experience, we ignore most of what happened and focus mainly on a few specific moments.

So to become unforgettable we don’t have to be perfect in every single aspect, but we just need a few unforgettable moments.

If you want to create an unforgettable shopping experience, you can focus on creating individual wow moments!

And that’s exactly what we did in this case study:

Project: Be Your Bag is a company that produces handcrafted customized bags.

Objective: Loyalty of new customers.

KPI: conversion rate from the 2nd to the 3rd purchase.

Starting point: over the last 3 years, the repurchase rate from the 2nd to the 3rd purchase has always been around 25%.

You can see in the graph above how there is a 75% drop from the 2nd to the 3rd purchase.

In reality, for most e-commerce it can be considered a normal drop.

However, our goal for Be Your Bag was to grow the numbers of loyal customers.

We have identified a possible bottleneck in this metric.

So here’s what we did:

1) We identified new customers who could potentially become VIP customers.

So our goal was to understand new customers, who were most likely to become fans of the brand in the future.

We did this by analyzing the behavior pattern of current VIP customers, using the RFM Matrix.

This was our definition of VIP New Potential Customer:

  • A person who had made 2 purchases within 4 months.
  • The value of these purchases was at least €180, so it probably meant that in the two purchases consisted of at least 2 bags (and not a bag and a smaller product such as a cosmetic bag or key ring).

After defining the customer segment, we had to create the wow moment.

The idea that came to us was to send these customers a handwritten paper letter just to thank them.

But since we are automation maniacs we wanted to automate this activity as well.

You understood correclty…

We created an automation that could send a handwritten paper letter (including the person’s name) to a customer’s home.

All without any human intervention.

Here is the recipe for making this automation possible:

  • A good dose of creativity, genius and madness
  • Klaviyo, which identifies the segment of new potential VIP customers.
  • Make, our favorite tool for creating the most complex automations.
  • Handwritten, a company that creates and sends handwritten paper letters thanks to the use of 3D printers that simulate human writing.


Now I won’t go into the technical details of how we made it, I’ll just put the Make automation screen if you want to see the various steps.

Here is the letter that the customer receives at home:

You can see that it is to all intents and purposes a handwritten letter 💌
 
I also want to share with you the copy we decided to write:

Hi Thomas,

By now you will know that in Be Your Bag we care a lot about tradition.

That's why we thought of posting a note in your letterbox to say THANK YOU.

Thank you for choosing us, for supporting Made in Italy and craftsmanship, and for knowing how to wait.

We hope that we have reciprocated your trust by creating a Be Your Bag exactly as you wished and that it was love at first sight!

See you soon, Elena and Giacomo

No sales copy, no coupons, just a big thank you.

Imagine what an unforgettable moment for a customer to receive a letter of this type directly to their home, signed by the founders of the company.

This is truly a wow moment!

Let’s take a look at the results this activity has brought:

The Conversion Rate from the 2nd to the 3rd purchase, since we started this strategy, has risen to around 41%. Thus obtaining an increase of +64% compared to last year.

We also received so many messages and thank you posts from our clients, everyone was amazed.

And you, in your e-commerce, have you already created a wow moment of this type?

From now on, I advise you to work on creating unforgettable moments in the purchasing process.

You don’t have to use such an advanced automation that sends handwritten letters.

There are tons of other strategies you can use. I leave you below other tips and sources from which to learn more:

  • You can handwrite letters yourself, 5 letters a day take about 15 minutes between writing and mailing. In a month there are 150 customers who are amazed.
  • You can also test Bonjoro, to send personal video messages.
  • In this article of mine you can find other examples and case studies that we have created.
  • I also recommend this book, where you can further explore the subject.

 

Keep growing,

Thomas

we wave, you grow

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