February 25, 2008
La Redoute Thank You Campaign )SmartReply, Inc.)
Brand: La Redoute
Product type: Casual women’s apparel and linens
Agency: SmartReply
Client: La Redoute
Time was when Grandma would shuffle into a store with a handbag-sized accordion file of carefully clipped coupons, and kidnap the checkout girl for interminable minutes as she sifted for the one or two that would shave cents off the Kerchiefinator, her favorite brand of scarf.
This is, of course, because Grandma never had a cell phone, and Kerchifinator never had SmartReply.
La Redoute does, however, and by contracting SmartReply for its text messaging, database management and web development services, the global consumer brand and catalog retailer specializing in casual apparel, has positioned itself at the forefront of the latest trend in the digital direct marketing revolution.
The Idea
SmartReply, for the La Redoute campaign, created an opt-in web page and a database for captured cell phone and email addresses, managed the opt-in and –out confirmations, provided an XML web service to transfer data from the website to the database for immediate action, programmed the short code and key code, and executed the text message delivery and reporting. In plain English, SmartReply made it possible for La Redoute’s customers to log into its web page, enter their cell phone numbers, and receive- instantly- discount coupons and up-to-the-minute information on products right on their mobiles. More importantly, SmartReply provided a coherent and comprehensive method of tracking and retaining the pertinent information provided by La Redoute’s customers, and opened a new avenue through which the company could reach its consumers directly.
The Context
The ubiquity of mobile telephony is no secret, and of no small importance. The screeching little devices in every pocket and purse not only connect individuals in a way unimaginable scarcely 15 years ago, but also individualize connection in an unprecedented way. The implications for marketing on this micro-level are only just dawning, but growing clearer with the advent and expansion of text messaging. Text marketing is akin to direct mail and email, but without the throwaway factor; the recipient who will summarily toss junk mail or delete spam will at least glance at an incoming text. Used in conjunction with a website, especially with the opt-in angle generated by SmartReply in this case, the whole campaign was tailored to and absorbed by the target market with maximum effect, instantly.
The Players
La Redoute, the number one catalogue for casual women’s apparel and household linen in France, has its roots in the 19th century town of Roubaix in the Nord-Pas-de-Calais region of northern France. Charles Pollet established a wool mill there in 1873, and 48 years later ventured into mail-order retail, almost instantly becoming one of Europe’s leading mail-order retailers. La Redoute boasts 18 million customers in 21 countries with a rapidly developing US presence, and aims at the working woman )age 21-45) making an average of $75,000 per year. The typical La Redoute customer is fashion-conscious and attracted to the European cut and color palette exemplified in the knit tops and skirts, dresses, swimwear and career wear found in the catalogue.
After leading the mail-order business in Europe, then adopting traditional website-and-email marketing, La Redoute sought to maintain its advantage in connecting directly with its US customers through the text messaging techniques provided by SmartReply. Mobile usage growth- in the US particularly- is rising dramatically )especially with the over 30’s, who have the highest adoption rate of text message usage), and by entering that avenue now, La Redoute positions itself to maximize the value of the truly direct marketing possible only through the cell phone. Furthermore, by adopting these methods early, La Redoute can expand quickly into the non-marketing uses of mobile text technology, for example: real-time information, unfettered by the home PC, about an out-of-stock item that just came back in. La Redoute, through the solutions provided by SmartReply, is poised to take full advantage of the emerging text-based marketing and services.
The Implementation
As the country’s leading voice and mobile solutions provider to the retailing industry, SmartReply was the obvious choice, but not without consideration. Will La Redoute’s customer base adapt to the technology and react positively? Will the data be secure? Does this new medium fit with the principles and strategies consistently used by the company to achieve the level of success and renown it already possessed? After deliberation, the answers were all found in the affirmative, and work on the project began on January 10th, 2007.
The project was designed, as many in today’s marketing realm, for rapid implementation and nimble response. While SmartReply developed and implemented the working components, the client has the ability to email a campaign request and have it rolled out the next day, with no prior notice. SmartReply’s Strategic Marketing Team provides guidance in scripting and timing of messages sent, also at short notice.
The campaign was rolled out in February after about 4 weeks of development, and with no necessary training for the client. It should be noted the La Redoute campaign was the very first of such a campaign in the US. The first step was a message to La Redoute’s existing email list, announcing the new service and inviting customers to sign up.
The “Thank You” Test
An ongoing text campaign would appeal to today’s valuable but hard to reach on-the-go consumers. The test started with a text message containing a “Thank You” for enrolling a discount coupon code good for online purchases.
The initial test proved a very viable strategy. The “Thank You” campaign generated a 7% coupon redemption rate of participating consumers. 7% response* on average which is 60% better than average email conversion rates.
The Efficacy 
The resulting welcome message sent to the signing customer’s cell phone is still in rotation, and includes a 20% discount off their favorite item. During the initial test samples carried out from March 1st to April 9th 2007, the welcome texts sent have yielded a return of 11.1 percent. An additional announcement sent March 29th yielded a 16 percent return. On the $25,000 implementation, ROI was reached in less than four months and the program is profitable.
The project was the first test sampling for the retailer and has been an unqualified success. As such, full roll-out of the program will commence in July 2007. Based on the above percentages and ROI, the ongoing campaign will continue to maximize response rates and return for the retailer.
The project’s success has allowed La Redoute to utilize and develop an effective, responsive new medium that adds to their marketing capabilities and enhances their consumer relationship and brand image. There have been no unexpected difficulties. Response has been phenomenal, often multiples of what can be expected from catalogues or email alone. Increases over these traditional vehicles are expected in both raw sales and average transactions over a year’s period.
In short, La Redoute has capitalized on a relatively new medium while positioning itself for success in the future, all through the SmartReply project. La Redoute looks to maintain its preeminence in European mail-order retail while carving a new foothold in the US, and with SmartReply staying well ahead of the marketing curve.
For more information about this submission, please contact:
Jonathon Starets
Director of Sales, Smart Reply
949-340-0711 – Direct
714-915-0547 – Cel
Vanessa Horwell
Media Contact, ThinkInk PR
786.206.7883
305.776.8817
