Hancock's of Paducah

Leading fabric retailer drives revenue through reengagement program
Hancock's of Paducah

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Introduction

Hancock's of Paducah began selling notions and fabrics to clothing makers in 1969 and has since evolved to being a multi-channel retailer of high quality fabrics for quilt makers and patch workers around the globe. Based in Paducah, Kentucky, Hancock's of Paducah showcases its products in a retail location, catalog, and their web site. A Bronto client since 2007, they leverage marketing channels including email and social to communicate with their loyal and enthusiastic customer base. Blann Hancock, Co-Owner, represents the third generation operating the company that his family founded and he leads Hancock's of Paducah's marketing efforts.

Situation

Because email marketing is a significant driver of business, Blann continually assesses the performance of this marketing channel.

Blann had begun to notice that while his email subscriber list was steadily growing, his open rates had become stagnant. He reached out to his Bronto Marketing Strategist to help diagnose the cause and determine what could be done.

Hancock's of Paducah focused on list growth efforts without much regard to data hygiene. They were mailing their list of 130,000 subscribers twice weekly. They began to notice skews in metrics such as open rates remaining stagnant or declining while the overall list size continued to increase. To ensure that email remained a high-value marketing channel, Blann knew they needed to improve engagement and list quality.

Solution

The Bronto Marketing Strategist working with Blann determined that the growing list contained many unengaged subscribers and recommended implementing a reengagement program and a list cleaning. Around 40% of their list had not opened the last 20 messages. Hancock's of Paducah prides themselves on being accessible to their customers and maintaining open communication. They realized that this company value could be strengthened in the email channel and that a reengagement program would be a great step in that direction. Blann believed the reengagement program would be "a strategic marketing effort but also a valuable customer service effort and a way to extend brand messaging."

Hancock's of Paducah began a Strategic Sprint, a Professional Service offering from Bronto combining strategic consulting and execution to implement high-value campaigns on a project basis. Together with the Marketing Strategist and Professional Services Consultant, a 4-part re-engagement program was developed that provided multiple opportunities for disengaged subscribers to reengage by opening, clicking or converting from an email in the series.

All disengaged subscribers received the first email and would continue to receive the rest of the series if they did not open or click the previous message. Each of the first three emails contained an incentive to respond, which increased in value as the reengagement series progressed.

The final message gave subscribers one last chance to reactivate and did not contain an offer. Subscribers who did not open the final email were removed from the list. Openers were presented with two options: Do nothing and stay on the list or unsubscribe.

The breakdown of the message offers:

  • Message 1: $30 off $100
  • Message 2: 20% total order
  • Message 3: 20% + Free Shipping
  • Message 4: Make up or Break up

In addition to leveraging their Marketing Strategist, Hancock's of Paducah also used with Bronto's Professional Services Implementation Team to build the templates and segments.

Results

The reengagement program not only helped to reactivate subscribers and improve list quality, but it also drove sales. Over the course of the 4-part series, Hancock's of Paducah reengaged 28% of their disengaged subscriber segment and had a click-to-purchase rate of 6%. Each click in the series represented $5.32 in revenue, with Message 3 receiving almost $9 per click.

As a result of removing inactive subscribers Hancock's of Paducah now has a more accurate view of the engagement metrics for their marketing program.

Next Steps

The reengagement series will be deployed each quarter to any subscribers matching the disengagement criteria of not opening any of the last 20 messages. Additional variables will be tested to further optimize the program and then it will be automated to process any subscribers once they meet the disengagement criteria.

Prior to the reengagement series, discounts and coupons were rarely used. But, Blann determined that including offers more frequently in email communications could help increase conversions without sacrificing revenue. He plans to make these deals easier for shoppers to find on the site, in email, and through social media in order to help to drive engagement and revenue.

Hancock's of Paducah plans to incorporate many new marketing programs and enhancements in the future. They are currently working on improving website functionality, including customer reviews, product ratings, and a digital catalog app.