Love has no price: Longer Lasting Customer Loyalty Through Postal Marketing

Love has no price: Longer Lasting Customer Loyalty Through Postal Marketing

As we approach the Customer Engagement Conference 2024, we’re shifting the focus to redefine loyalty strategies for today’s fast-paced marketplace. This year, we’re exploring the vital question: how can we recreate genuine, long-term loyalty rather than relying on short-term gains. In Q4, brands often shift focus to aggressive growth tactics —deep discounts, expansive targeting, and relentless promotions. But where’s the love in all of this?

This article delves into the often-overlooked potential of print media, specifically postal marketing and data-driven direct mail, as a catalyst for building enduring customer relationships, moving beyond the fleeting allure of price promotions and discounts.

Data-driven direct mail drives authenticity

Engaging multiple senses creates marketing that gets noticed, and if we are aiming to create long-term loyalty effects with our customer base, we need something tangible to capture their attention. Unlike many online marketing alternatives, print media provides a physical touchpoint that builds a deeper connection with customers. Personalised direct mail campaigns create lasting experiences that resonate long after the initial interaction.

Data-driven direct mail offers unique opportunities for personalisation. By tailoring mailers to specific customer segments, brands can connect effectively, demonstrating an understanding of individual preferences and needs. This personalised touch boosts engagement and fosters loyalty by making customers feel valued. The power of personalisation cannot be underestimated. Recent research by IMRG found that personalisation ranked as the second-highest approach for retailers to improve customer retention year-round.

Home is where the heart is

Why does personalisation matter for loyalty? It bridges the gap between perceived and actual customer needs. Tangible media lets marketers step away from a crowded digital space and step directly into a customer's home. This form of engagement grabs attention and with effective personalisation, fosters relevance and authenticity, creating a sense of warmth towards your brand.

By physically experiencing a brand’s message, customers provide a more genuine response to marketing efforts. It’s no surprise that moving away from promotion-driven incentives (to focus) on long-term loyalty strategies can pay off.

Don’t go breaking my heart

We’ve all experienced coupon-driven loyalty efforts, and while traditional loyalty programs often focus on discounts, these can dilute brand value over time. IMRG reports that 94% of loyalty schemes still offer money off, versus just 31% offering gifts. Print marketing offers a meaningful alternative, allowing brands to reward customers in ways that enhance perceived value. While digital follow-ups are often the default, how many brands reach out across less-used channels? Loyalty can grow not only through timely follow-ups but also through surprise-and-delight opportunities. Personalised thank-you notes or limited-edition print offers can convey a sense of privilege and exclusivity. This approach strengthens the bond) with your brand and reinforces that it’s not all about constant discounts that erode perceived quality. By creating premium experiences through print and direct mail, brands can solidify the emotional bond with customers, promoting long-term loyalty.

Creativity in Loyalty-Based Marketing

Creativity continues to be an effective tool in loyalty-based marketing, and print offers a unique canvas for innovation. The space available in print media allows brands to utilise not only small banner ads or fleeting impressions but also the entire mailer format, including the outer envelope. Advanced capabilities like those offered by Paperplanes enable brands to leverage product placement algorithms and machine learning to create tailored, personalised content. These creative efforts help ensure that a brand's message stands out amidst digital competitors fighting for limited inventory and ever-shorter attention spans.

Unique and thoughtfully designed print campaigns leave a lasting impact, encouraging engagement and fostering customer retention. By tapping into the creative possibilities of print, marketers can deliver memorable experiences that keep customers coming back.

We'll be exploring these themes further in this year's Customer Engagement research, releasing at our Customer Engagement Conference on Tuesday 19 November, crucially canvassing the opinions of both consumers and marketers as we unpick how to reward loyalty without getting trapped in a downward spiral of price sensitivity.

By Daniel Dunn, Co-Founder & CEO at Paperplanes and member of the DMA Print Council