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The challenge: Yoga Lounge celebrated a strong debut in mid-2006 and posted impressive revenue numbers through its first nine months of operation. The company’s concept (part yoga studio/part spa/part organic refreshment bar) was a hit with first-time clients, and the store’s future seemed bright. But by late 2007 the store’s revenues had dwindled, and the company limped through a disastrous tourist offseason. The store’s management team ponders wholesale changes to the company’s concept and business model before turning to Elevation 7.
The solution: Utilizing the store’s client contact list, Elevation 7 conducts a study via e-mail and phone to analyze the reasons behind the company’s inability to retain customers. The results (124 respondents) revealed that while clients enjoyed the store’s services and concept, the company’s prices seemed out of line with other competitors in the market. Considering the overall fragility of the local economy, it becomes readily apparent why the store has lost traction. The task is clear — develop a concept that positions Yoga Lounge as therapeutic, inviting AND affordable. Elevation 7 proposes a targeted e-mail marketing campaign to the store’s client list, along with additional contacts compiled through a data analysis of year-round residents by income and location. The campaign will offer time-sensitive discounts on bundled service packages that can be booked via click-through to the company’s website. Additional support will be provided by modifying the company’s existing print buys in area lifestyle publications. The look and feel of the campaign should convey the store’s warm, organic feel rather than scream “discount!”. Image and ambience remain vital components to the store’s long-term business model.
The result: Response data shows the e-mail campaign compiles an astounding click-through rate of 34%. Of those respondents, 52% purchase a service package. The store extends the discount to the respondents as a repeat offer at the time of service, and over 60% book a second service. All told, the store estimates repeat business tripled over the next 60 days. The company’s management team has expressed interest in adding targeted e-mail promotions to its long-term marketing strategy.
