Forest City Enterprises uses direct marketing to generate interest in its properties coast to coast
As any MBA can tell you, retail is all about foot traffic. To get dollars in the till, you’ve got to get shoppers in the stores. Well, the folks at Forest City Enterprises know this well, and they rely on a hefty dose of direct marketing to spread the word about their numerous retail properties across the nation.
As the director of advertising for Forest City Enterprises, Stephanie Shriver-Engdahl is charged with capturing the attention of prospective shoppers. Recently, Shriver-Engdahl spoke with Deliver about what stimulates her own consumer behavior, and how that drives what she does at Forest City.
Deliver: What inspires you as a marketer?
SHRIVER-ENGDAHL: I am inspired by the number of pieces Forest City has produced and the number of mailings I have received that are printed on paper using wood from well-managed forests, containing post-consumer recycled paper, and printed using soy or other vegetable-based inks. Since Forest City adopted sustainability as one of its core values several years ago, I’ve learned that it doesn’t have to be at odds with the bottom line, and that commercial interests and social responsibility don’t have to be mutually exclusive. Our end goal is to have absolutely everything we do printed on some sort of recycled paper. Already, we’re thinking through every piece of direct mail we do in terms of the mailing list and the creative, looking to be more targeted in our efforts. This is really the most sustainable thing we can do, instead of generating tons of mass mail and hoping for a 2-percent return rate. It’s more fiscally responsible to send fewer pieces with returns ranging from 6 to 29 percent.
Deliver: How important a role does direct mail play at Forest City?
SHRIVER-ENGDAHL: Ten years ago, direct mail had a fairly minor role in the marketing for our shopping centers. However, over time a greater portion of the advertising budgets that were spent on print and broadcast has been reallocated to direct mail. This is because we can target consumers based on demographic and lifestyle preference with pinpoint accuracy; our message only goes to consumers we want to speak to, and direct mail provides the measurability necessary to determine the success or failure of a program. Consumer preference is another important driver in direct mail’s growing role. Since 2004, we have seen a steady increase in our customers’ choice of direct mail as the preferred media for communication from our shopping centers. In May 2008, when consumers were asked how a specific shopping center could best reach them with information on stores and events, direct mail was the medium of choice for 88 percent of respondents.
Deliver: What’s your favorite piece of direct mail from Forest City?
SHRIVER-ENGDAHL: We worked with one agency to create a postcard targeting new movers in the Denver area and encouraging them to visit two of our centers, The Shops at Northfield Stapleton and The Promenade at Bolingbrook. I just love the headline on this piece: “We thought about bringing over a tuna casserole, but figured you’d like a $15 gift card instead.” The accompanying simple illustration is great, too, using simple black lines. We could have done something extremely pedestrian, like “Welcome to the neighborhood.” Instead, we decided to put a little effort into the campaign, make it more appealing, and see if people would respond. I’m happy to say they did. The better we are as marketers at eliciting a visceral reaction from the consumer whose behavior we are trying to influence, the better the results will be.
Deliver: Is there a piece of direct mail that you hold onto because you think it is beautiful, funny or awful?
SHRIVER-ENGDAHL: There’s a certain upscale catalog that, for me, is the print equivalent to chocolate, and it appeals to me for lots of reasons. The size and binding are like those of a magazine, the cover is heavy and super smooth, and the typography is gorgeous, with photos of artfully arranged sterling silver serving pieces for the bar on your yacht. I find it very aspirational. You look at it and you want the things inside. I keep telling myself I’m going to treat myself, but I haven’t bought something from the catalog in a while. I would die if the company cleaned its mailing list and got rid of non-purchasers.
Deliver: What is the last piece of direct mail that you responded to?
SHRIVER-ENGDAHL: Last year, I signed up for the affinity program at a national office-goods retailer to save on my children’s back-to-school shopping. Out of the blue, I recently received a mailer with a shopping card attached that was preloaded with a dollar amount equal to the rewards I had accumulated during the previous quarter. The mailer also included some discount coupons. It was destiny; I needed a new desk chair, so I took the card into a store and used it. As a consumer, I usually trash the bad and boring direct mail I receive first, unless there is something I need. If a piece isn’t about something I need, it has to entice me, make me have a visceral reaction, like smile or laugh.
Large Business, Opinion, Prospecting
