The power of personalisation for customer loyalty, CLTV and repeat revenue

In partnership with Penny Black


In the past few years, the cost of acquiring new customers has been going up, causing some real challenges for brands to stay profitable. That’s why many brands are shifting their focus towards keeping the customers they already have. Even a 5% increase in repeat purchases can increase a brand’s revenue by 95%.

One steady strategy that has been the bedrock of most DTC brands’ marketing success is personalisation. McKinsey found that brands that “excel” in personalisation generate 40% more revenue from those activities than average players. Customers not only expect it, but they also tend to buy more when they get a personalised experience. Surveys show that a huge 71% of customers anticipate personalisation, and 76% get frustrated when personalisation is not part of their shopping experience.

However, when it comes to excelling in personalisation, there’s one thing most brands are overlooking: the unboxing moment. For DTC brands, the physical experience of receiving a package often feels like a step that is impossible to personalise. It’s too slow, expensive and just impossible to do. 

Elanders have partnered with Penny Black to change that. Penny Black allow brands to create personalised unboxing experiences at speed and with ultimate ease that connect the digital and physical worlds. This leads to higher customer engagement, stronger brand loyalty and ultimately, long-term revenue growth that lasts. 

Personalised inserts vs non-personalised inserts

Inserts in ecommerce have long been used to delight customers during the unboxing moment, making them feel valued and connected to the brand through content, discounts and beautiful branding. 

But, traditional inserts often lack two crucial elements – measurability and variety. Brands invest in packaging without a straightforward way to track the return on investment (ROI). At the same time, they get stuck serving the same impersonal content to customers repeatedly, leaving feeling undervalued and like the brand doesn’t know them. 

This is where the concept of “phygital” experiences comes in, blurring the lines between physical and digital channels to create a consistent experience that combines convenience, speed and personalisation. Phygital marketing is gaining traction as customers are becoming weary of digital ads and increasingly trust physical ads. Reports indicate that 82% of customers trust print advertising, while 76% trust direct mail.

Personalised inserts offer brands a way to create “phygital” experiences with the ability to track conversions and create unique experiences for customers in the real world. Tools like Penny Black allow the inclusion of QR codes and unique discount codes, providing insights into the returns generated from personalised inserts. At the same time, brands can serve unique content for customers every time they shop.

With Penny Black, brands have achieved a 4-6x ROI by just investing a little bit more in packaging personalisation. This is because the unboxing moment has sky-high conversion rates of 1.8% (on average) as it’s the only point in the customer journey when you have your shoppers’ complete, undivided attention.

Personalised in-package inserts also outperform other post-purchase channels, generating an 11x higher revenue per recipient than post-purchase emails and 22x more revenue than SMS. And, by sending different inserts with varied call-to-actions based on the customer journey, Penny Black campaigns have achieved outstanding results for a variety of DTC brands.

  • First-time customer campaigns achieve a 2% conversion rate, resulting in additional revenue of £1.50-£2 per insert
  • Loyal customer campaigns have resulted in a 6x increase in the size of one brand’s loyal customer community, with inserts for loyal customers achieving a 25-30% scan rate
  • Referral campaigns achieved a 2.5% conversion rate, resulting in £2.50 additional revenue per insert

With the combined power of Elanders supply chain solutions and Penny Blacks personalisation power, you are guaranteed to see customer loyalty and engagement sky rocket!

To book a demo or find out more contact us here