The beauty site sends direct mail to consumers who visit its site and don't convert. The program is generating a three times return on ad spend.

Target Corp.-owned Dermstore has long worked with an array of digital marketing vendors to remarket to consumers who come to its site but don’t buy. But even so, Bumsoo Kim, the online beauty site’s director of marketing, knew some shoppers were falling through the cracks.

“Not everyone looks at their screens all the time,” he says. That’s particularly true among the retailer’s core demographic: women between the ages of 30 and 45, he adds.

That realization led the retailer to turn to PebblePost, a programmatic direct mail vendor that tracks a consumer’s online actions. PebblePost can see, for example, that consumer is browsing the site without completing a purchase, and then use that information to send her a personalized postcard featuring a unique promotional code.

Here’s how the tool works: Dermstore places a pixel on its site, which enables it to track consumers’ on-site actions. The platform then builds an audience based on a user’s page visits, searches and events such as cart or site abandonment. The platform then uses Dermstore’s customer-relationship management system to match consumers with their mailing addresses, as well as PebblePost’s Website Prospect Retargeting tool that uses data management vendors’ data to determine the most likely mailing address for a website visitor. The vendor’s Address Graph technology also analyzes millions of data points to make a connection between the browser or device that the website visitor is using and her name and postal address.

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When a consumer within the retailer’s target audience takes an action, such as visiting skincare pages but failing to complete a purchase, PebblePost sends her a postcard via U.S. mail with a personalized promo code. The platform can match roughly 80% of the shoppers it tries to target, Kim says.

Dermstore began testing PebblePost’s platform in March and quickly found the program worked. The retailer is generating more than a three times return on ad spend based solely on promo code redemptions, which is the primary metric it tracks. But because it uses the pixel to track shoppers’ actions, Dermstore has generated an even greater return based on total conversions among consumers who received a postcard, Kim says.

Surprisingly, the retailer has found that lead times are extremely different from digital ads as roughly 30% of the promo code redemptions occurred more than two months after the retailer had sent the shopper a postcard.

“We knew we’d have to adjust to longer lead times,” Kim says. “But we were surprised just how long those lead times were for so many of the customers who ended up making a purchase.”

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Target is No. 20 in the Internet Retailer 2017 Top 500.

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