Pacific Ink Case Study
Pacific Ink connected with Jim Hernandez when they were struggling to grow more. Their business had gone from working out of a garage, to having a fully developed warehouse fulfillment operation, call center and large marketing investment. After being convinced to do a traditional ad campaign on television (that failed completely), this web based business connected with Jim.
To successfully support Pacific Ink (who primarily sell printer ink and toner cartridges), Jim realized that what first needed to be done was to find out what was important to Pacific Ink customers. After a series of calls he learned the following about their specific situation: customers were motivated primarily to buy from Pacific Ink because of their low prices; their biggest hot button for an offer was “Free Shipping”. However, 50% of their existing customers still had gone back to the traditional big box office supply stores and paid double for their replacement cartridges and toner. When asked why they had gone and spent more, they indicated that in the case of an emergency, they would run out to the store to replace their toner or ink cartridge.
Working with Jim and his team, Pacific Ink created a loyalty program that would: 1. calculate for customers an estimated time as to when they would run out of ink the next time; 2. Make sure the customer had ink when they ran out; and 3. Provided Free Shipping if the customer participated in the loyalty program.
This allowed the customer to continue to save 50% off the price they would have to pay at the big box office supply chains. In just over 12 months, over 10,000 customers signed up for the Pacific Ink loyalty program, which helped Pacific Ink better manage their own inventory (because they could predetermine what would be sold), and reduced their overall marketing expense substantially. In addition to this program, Jim worked directly with one of the founders of Pacific Ink to put in measurements on their cost for pay-per-click from the major web-search engines. As a team, SBC and Pacific Ink worked on a referral and newsletter campaign to develop more business directly, at a much lower cost, and more effectively than the original TV campaign they had engaged in.
Today, Pacific Ink has sold 100,000’s of Ink Cartridges all over the United States and even overseas. Congratulations to them on their continued success in being tremendous entrepreneurs!