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As store sales decline, Perricone MD looks better on the web
With sales through stores flat or down, the manufacturer and retailer of skin care products has overhauled its branding campaigns and boosted online sales by 40%, vice president of e-commerce Neil Kjeldsen says.
Managing Editor, International Research
With sales through stores flat or down, Perricone MD, a manufacturer and retailer of skin care products and dietary supplements, has overhauled its branding campaigns and boosted online sales by 40%, vice president of e-commerce Neil Kjeldsen says.
The branding campaign includes returning to premium frosted bottles for packaging its skin care products and dietary supplements and running an e-mail marketing campaign to re-engage dormant customers, he adds.
Perricone MD has traditionally sold through three main channels: high-end retail stores like Nordstrom, videos shown on QVC.com, and its own retail web site, PerriconeMD.com. But with its retail chain partners offering fewer sales assistants in stores to help promote its products, along with the retail industry’s general decline in stores sales, Perricone MD has been reactivating through e-mail marketing customers who have engaged with the Perricone MD brand in the past.
“It’s been a great way to re-engage customers we had lost,” Kjeldsen says.
In a three-month period from March through May of this year, Perricone MD worked with predictive analytics and e-mail marketing services from iPost, an e-mail services provider, to identify and reach out to dormant customers who have a strong history with the Perricone MD brand, says Kjeldsen, who discussed the project at the Internet Retailer 2009 Conference & Exhibition in Boston this month.
Using iPost’s Autotarget predictive analytics application, Perricone segmented e-mail lists of customers based on their past level of brand engagement. It then worked with iPost to send out targeted e-mail marketing messages to help lure customers back into repeat buying. It started with e-mails offering small samples of its products at discount pricing with free shipping. Once customers responded with two purchases, Perricone MD followed up with offers of full-size products without discounts.
The results included a conversion rate of 33%, as revenue per e-mail rose to 26 cents from zero. By the third month, Perricone reported profit from the project at 25 times the project’s cost, Kjeldsen says.