How Panda Express Reversed a Sales Slump With Direct Mail

When Panda Express noticed locations without a drive-thru were struggling, the brand sought to spur online delivery orders by connecting to customers’ offline mailboxes with direct mail. The ultimate goal is getting those same customers to order online or via its app, since the valuable first-party data it provides is the key to developing long term-customer relationships. “When someone says direct mail is so antiquated I say, ‘It's an onramp for digital adoption,’” Fabiola del Rio, Panda Express’s executive director of community marketing, told Adweek. “The most important objective for me was to accelerate digital adoption.” It worked. In some areas, the promotion redemption rate was as high as 33% compared to the average redemption rate for similar promotions of 3% to 4%, del Rio said. But it was the proof that direct mail led users to order online that del Rio said is the true win: Panda Express’s online business from the direct mail campaign was up 20% versus its national digital sales, which is about 10%. 5 Advertising Secrets Direct From Amazon Taking a cue from DTC brands Del Rio and her team turned to direct mail at the beginning of the pandemic. It was a major pivot in the brand’s marketing strategy, since the channel wasn’t used for decades at Panda Express. But the chain gave it a shot, given people's reluctance to enter stores. Plus, the marketing team didn’t need research to tell them people were staying home, so reaching their physical mailbox was a clear way to connect with customers who might not have realized Panda Express franchises were reopening. We really see digital and direct mail as synergistic tactics to accelerate digital adoption.Fabiola del Rio, executive director of community marketing, Panda Express In a campaign internally called “Reignite Non-Drive-Thru,” del Rio’s team only targeted the 3-mile radius surrounding underperforming stores with promotional mail. The mailer also explained that customers can order online or through an app, and that Panda Express will deliver. She said the campaign took a page from direct-to-consumer retailers like Allbirds and Warby Parker’s playbooks who used direct mail for customer acquisition when their physical locations eventually reopened. Given their success, she believed the return on investment for Panda Express’s underperforming stores would be worth it. “The most successful modes of engagement for us in the last year-and-a-half have been direct mail and CRM,” del Rio said. “It's meant to be a feeder into our omnichannel marketing, and we’re working towards that. We really see digital and direct mail as synergistic tactics to accelerate digital adoption.” Direct mail comprises about 16% of the QSR's full paid media spend. When the store reaches predetermined performance goals, the direct mail campaign surrounding it ends. The campaign will pause starting Nov. 14, since historically there’s a lower redemption rate when the public is busy during the holiday season. Putting direct mail to work Del Rio’s team is now testing direct mail’s ability to recruit job candidates. In areas where there’s a shortage of restaurant workers, the latest round of promotional mail includes a message about the store’s proximity, quotes from employees about what it’s like to work at Panda Express and details on how to apply for a job. Those regions include the Northeast and Mid-Atlantic, where awareness about the chain isn’t as high as in the West. It’s too soon for quantitative results, but del Rio said anecdotal evidence suggests it’s working. “We saw a recent study that said the No. 2 reason someone selects a job is convenient location,” del Rio said. “How do we solve for a convenient location? We take a marketing tactic and apply it to recruiting.” To Reverse Declines, Direct Mail Updates Old Methods With Digital Touches