New creative and improved database management doubles campaign conversion rate from 4% to 8%
The Challenge
Our client conducts two major direct mail campaigns per year to solicit sales for a suite of employee benefit products. As conversion rates had remained flat for the past three years, they came to us to increase conversions, update product messaging, revitalize creative and improve list effectiveness. They wanted to achieve all of these goals while still minimizing costs.
The Solution
- We crafted new, customized messaging for each vertical segment. By using variable data content, we also fostered a one-on-one connection by providing local contact information and the nearest fulfillment location.
- To stand out amidst the clutter, we moved away from standard-sized mailers and instead developed uniquely shaped packaging with cutting-edge appeal and imagery. Inside the package, we introduced easy-to-use order forms and return envelopes.
- We cleaned up and refined our partner’s database to eliminate 30,000 dated, inactive customers. This represented an instant savings of $31,000 in printing and mailing costs.
- We strategically refocused efforts toward promising acquisition targets by incorporating three new markets and 35,000 new potential customers.
The Results
Our database cleanup increased the sales conversion percentage of active retention customers from 4.36% to 8.32%. It also dramatically raised the active retention ROI from 3,573% to 6,540%, achieving a new benchmark of cost-effectiveness for our partner. Plus, our focus on three unexploited new markets paid off handsomely, as these targets represented an impressive 42.2% of acquisition customer purchases.
On the design front, our distinctive, eye-catching materials significantly outperformed our client’s internally produced direct mail pieces. Our creative posted a 4.48% conversion rate, compared to a 0.67% conversion rate for the internal campaign. Overall, our direct mail campaign exceeded our partner’s expectations by producing 2,272 orders at an average sale price of $709. This ultimately returned $1,611,956 in total revenue for a stellar ROI of 674.4%.
