Success in Customer Acquisition

A large regional discount retailer was faced with a challenge, they needed to grow the profit margin generated by each store without adding square footage or opening additional locations. Since they are a discount retailer it was difficult to lower prices to increase sales, conversely raising prices across the board would reduce their competitiveness in the market space. Ideally, more stores or physical expansion of current stores would have solved the problem but the funding wasn’t available. 

In addition, they were looking to build an accurate customer database which was something that they were unable to do due to the current limitation of their point-of-purchase system. They were tied to an antiquated IT system that wasn’t scheduled for replacement for a few years. They wanted to get a jump start on building a customer database and leveraging it to build customer loyalty and increase the average cart value per visit. In order to do this, they would need to create a system where they could see who their customers were and understand the product categories that they were interested in. They realized that targeting was key to growing profits and sales but needed a system to be able to capture the data.

Sunny Direct was tasked with building a marketing campaign and a simple system for capturing customer data and delivering it to the client. With the known limitations within their POS system we decided to start with simple system that would be easy for their in-store team members to manage. The idea was to create a direct mail program with promotional cards inside. These cards had barcodes that were matched to the address on the mailer. Since they could not scan these barcodes at the register we build a system where the cards were collected at the store level and sent back to us using preconfigured shipping cartons. While this may seem fairly rudimentary it was very quick and easy to implement across hundreds of locations and did not create any additional costs. Once the cards arrived back at our facility they were scanned in and uploaded to a database to track the response rate, ROI, and customer information. This was the beginning of their customer database. We were now able to capture information about who their customers were and the types of offers that they were interested in, all this was data that was unable to be captured by their current IT infrastructure. Once we gathered this data we analyzed customer trends and began highlighting higher margin items that were of interest to the

The new program resulted in a win-win situation for both the store and their customers. They saw increased foot traffic and cart value due to more relevant and personalized offers being delivered to their customers. They were also able generate significant additional revenue per store which alleviated the pressure to increase the square footage of individual locations. A clean and accurate customer database was created which was used to better understand who their customers are. This database was leveraged for subsequent campaigns and also used as a template for new acquisition programs. The solution was simple, effective, and scalable across all of their current locations. It provided a sustainable, long term strategy for growth that did not place unnecessary stress on their marketing budget.

Fortune 500 Distribution and Fulfillment Success

A fortune 500 company with hundreds of locations across North America was looking to consolidate the distribution and fulfillment of their in-store business and promotional materials. They needed a system that was secure, easy to deploy and integrated with their current corporate network. With thousands of team members using the system, they needed the software to be simple, efficient, and flexible. As their business grows the requirements are evolving, the solution needed to be scalable to keep pace with their expansion without driving unnecessary costs.

Sunny Direct deployed our online ordering and web-to-print system to facilitate quick and efficient ordering for their team. We developed custom functionality that fit the specific needs of their organization. Identity management and security policies were implemented to enable user management and administration. The system was integrated directly with our distribution facility to allow for reduced fulfillment timelines. This integration was build to reduce operational overhead and inefficiencies. Our team is there to answer questions and assist with any ordering or shipping issues. We pride ourselves on being an extension of our customer’s organization.

The online ordering system combined with the distribution and fulfillment program was able to create significant monthly cost reductions. The Sunny Direct customer support team was able to assist customers and decrease the amount of time that was spent on the support process. Average fulfillment times decreased allowing for a reduced need for the locations to stock large amounts of materials. The integrated approach created enhanced reporting and forecasting capabilities. This allowed for better purchasing and inventory decisions, resulting in additional cost savings.

Newspaper Insert Success Use Case

A leading national advertising agency was faced with rising costs and elongated timelines due to production and distribution challenges for one of their clients insert programs. They were working overtime to engage customers in the highly competitive fast food industry. Due to commodity price fluctuations they needed to significantly shorten the timeline for their client, to create a larger window for pricing decisions. They were facing pressure to get production approval quickly due to the increase in versioning requested by the client. At the current timelines it was difficult to match the pricing and promotional decisions of their competition.

Sunny Direct implemented our analytics and production models to redesign the manufacturing and logistics of the program. We were able to leverage our national network to create strong regional production centers that reduced shipping and production costs. Our purchasing volumes allowed us to provide paper at a significant cost savings while increasing the consistency of the inserts. Our quality control team worked to monitor production outputs and ensure brand consistency across the entirety of the program. By implementing a new production and logistics plan we were able to shorten production timelines by days creating a larger window for pricing and promotional decisions.

The changes created four additional days for pricing and promotional decisions. The new timelines relieved pressure on the agency and their client. Cost reductions were in excess of a million dollars annually. These cost reductions allowed for expansion of the program and an increase in the amount of versioning. This increased versioning was very helpful in being able to target their customers more effectively. With Sunny Direct’s quality control team in place they were able to focus on the design and strategy of the program knowing they could rely on the inserts arriving on-time according to their specs.

Digital Marketing Full Service Use Case

When a leading national provider of sporting goods and equipment was looking to boost traffic to stores and increase customer engagement around new stores they realized they were facing a challenge. It was difficult to build and track the results from the new store opening campaigns that were currently being run. Were these campaigns responsible for bringing people into the stores? Were they successful at creating a lasting relationships and bringing in repeat business?   

The goal was to create an acquisition program that could track both in-store and online activity and create a unified brand experience across all channels. The program would also allow for ROI to be tracked on a program and individual channel basis. This would allow for increased targeting and refining of subsequent campaigns. Basically, the ideal solution would be an omnichannel program that would provide increased visibility into customer preferences and engagement that could provide valuable data for future store grand openings.

Sunny Direct designed and launched a highly personalized and targeted program utilizing both digital and physical media. As an full service provider Sunny Direct was a single source for the planning, creative and production of the program. Direct Mail was used to drive store traffic using targeted promotions which when redeemed at the store level or online enabled easy tracking of ROI. The digital component was focused on driving customers to specialized store landing pages and engaging the customers with personalized offers and messaging. This highlighted the benefits of the rewards program and encouraged customers to share feedback on the new stores and their interests. This digital interaction was linked to in-store activity to create insight into individual customer preferences and interests.

The client was able to create a significant increase in the amount of store traffic and sales during the new store opening period. They were able to develop a database of customers and prospects in the geographical area of the store. Customer preferences were analysed to provide new insight into the specific challenges and opportunities that existed at the store level. There was an increase in rewards program registration and the increased trackability led to reduced timelines for follow-up promotional offers.