Case Study

NEOM recruits new customers with a 26% higher future spend through its catalogue

Launched in 2005, NEOM Organics offers a range of fragranced products to enhance personal wellbeing. To develop their customer insights and marketing strategy, they chose The Tapestry Agency to be their partner. 

Delivering Success

Tapestry built a single customer view to give NEOM a greater understanding of its customers. By applying modelling, segmentation, and analytics, Tapestry provides NEOM with strategic marketing recommendations to guide their marketing channel investment decisions.   

While NEOM is traditionally a digital-first business, Tapestry highlighted the value that the offline marketing channels play in driving growth. A strategy was developed for NEOM to prove the effectiveness of catalogue mailings in supporting their multi-channel acquisition strategy.

Tapestry built a catalogue mailing plan, testing multiple offers to identify the most effective option, and measuring the incremental value to determine the catalogue’s contribution to NEOM’s channel mix.

Making a Difference

 

The catalogue is attracting quality customers that NEOM weren’t previously accessing, and it’s delivering a wealth of benefits:

  • The most profitable acquisition channel: Customers recruited via its catalogue have a 10-40% higher lifetime value than those acquired via its digital channels, and they are worth 26% more in future spend.
  • An efficient recruitment channel: New customers are acquired profitably via the catalogue and in line with “cost to acquire a customer” (CAC) and “lifetime value” (LTV) expectations. Those recruited via the catalogue within NEOM’s acceptable cost per initial order were profitable on their second order.
  • Supporting its routes to market: NEOM continues to scale up its catalogue activity to support this critical recruitment medium that’s driving sales across its other channels.

“Tapestry has helped us realise the potential of catalogues to grow our business. Now we have an additional offline approach that enhances our whole multi-channel strategy.”

Esther Allen, Marketing and Digital Director, NEOM Organics

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