Jay Abraham Case Study #74
From: Mayur Shah
To: Jay Abraham
Sent: Thursday, August 15, 2002 10:12 AM
We are a retail fashion company, selling Indian ethnic garments. We decided to try a technique from Jay Abraham, where we would acquire the customer at cost. So we wanted to entice them with an offer that would be hard to resist and we would make our money on repeat purchases. The headline had to be powerful and the one we selected was, "Spend £20 at Variety Silk House and get £10 refund."
This was followed up with copy explaining why we were doing this (another of Jay's ideas). From our research we knew that over 95% of our customers had visited us before, so that repeat purchase was very likely and we were confident that what we were giving away initially would end up making us more money in the future.
We created an A6 size colour postcard with the offer on the front and copy on the reverse. It was inserted in a weekly newspaper that meets my target audience. We gave 8,000 postcards to be inserted in one issue. Our expectation was that we would get about 50 to 75 responses.
We had 484 postcards redeemed at our shop. It was quite an amazing response, we had 6.05% of the cards redeemed. It led to an increase in sales of £13,868 for those two weeks (it was a time limited offer).
These names were added to our database and mailings were sent to them regularly. Normally we would add about 500 to 600 new names to our database in a year, so 484 new names in two weeks was a great way to acquire new clients rapidly.
Mayur Shah