Buried deep within SpringBig's Q4 2023 earnings transcript, amidst talk of VIP subscriptions and gift card innovations, lies a subtle clue hinting at a potentially massive revenue driver. It's not the flashy new initiatives, nor the anticipated cannabis rescheduling windfall. It's something far less obvious, a shift in communication strategy so subtle it could easily be overlooked. Remember snail mail? The kind that arrives in your physical mailbox, adorned with stamps? While most marketers are obsessed with the digital realm, SpringBig is quietly embracing this "antiquated" form of communication. And it might just be their secret weapon.

The company revealed a fascinating fact: 40% of their messages are now delivered through email and push notifications, a significant departure from the reliance on text message marketing prevalent in the cannabis industry. Even more surprising, they're seeing an "increased use of mail," driven by its cost-effectiveness and improved deliverability.

This seemingly innocuous shift could be the catalyst for a revenue surge far exceeding current projections. Why? Because it addresses a fundamental problem plaguing cannabis marketers: reaching their audience effectively. Text message marketing, while popular, faces several hurdles. Carriers are increasing messaging costs, squeezing margins for platforms like SpringBig. Deliverability is also becoming increasingly challenging due to spam filters and evolving carrier regulations. Email, while less costly, suffers from similar deliverability issues, ending up lost in overflowing inboxes. Push notifications, reliant on app engagement, are limited to a smaller, tech-savvy audience segment.

The Power of Tangibility: Direct Mail in a Digital World

Enter snail mail, the underdog of the marketing world. While perceived as slow and old-fashioned, it offers a unique advantage in the cannabis space: tangibility. A physical postcard landing in a consumer's mailbox cuts through the digital noise, demanding attention. It's a tactile reminder, a tangible manifestation of a brand's message, and a powerful tool for driving in-store traffic.

Potential Revenue Impact

Let's explore the potential impact. SpringBig currently services over 2,900 retail locations and boasts a database of over 35 million marketable consumers. Assuming even a modest 10% adoption rate of direct mail marketing among their clients, targeting just 20% of their consumer base, we're looking at 700,000 pieces of mail. At a conservative average cost of $1 per mailer (including printing, postage, and handling), that translates to $700,000 in potential additional revenue per mailing campaign. Factor in multiple campaigns throughout the year, and the revenue potential becomes staggering. This is not included in their current revenue projections of $29 million to $32 million for 2024. If SpringBig capitalizes on this opportunity, their actual revenue could significantly surpass these estimates.

SpringBig's Communication Strategy Shift

Revenue Projections

A Strategic Move with Wider Implications

But there's more to this story than just revenue. SpringBig's embrace of direct mail reveals a deeper understanding of their client's needs and a willingness to innovate beyond the obvious. In a saturated market, differentiation is key, and SpringBig is positioning itself as a strategic partner, not merely a technology provider. This shift also hints at a broader trend: the rediscovery of traditional marketing methods in an increasingly digital world. As consumers become bombarded with online advertising, the novelty and tangibility of direct mail stand out. SpringBig's strategic embrace of snail mail is a bold move, a calculated gamble that could pay off handsomely. While analysts focus on the flashy new initiatives, this quiet shift in strategy might just be the key to unlocking SpringBig's true revenue potential. Will this "antiquated" marketing channel unleash a modern-day revenue tsunami? Only time will tell, but one thing is certain: SpringBig is onto something big.

"Fun Fact: The resurgence of vinyl records in recent years demonstrates consumers' appreciation for tangible experiences. Could direct mail be the "vinyl" of the marketing world, offering a welcome respite from the digital onslaught?"