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DSL Provider Direct Mail Pilot Results
Sanitized versionJune, 2006
2
This document presents the results and conclusions of the market research organized by an DSL Provider and The Post in order to compare impact of several media on brand image, product perception and sales activation.
This market research was conducted in March and April 2006 among 3500 customers, referring to a campaign on DSL. 4 media have been tested: Direct Mail, Customer Magazine, Invoice and Door to Door.
CAVEAT
3
AGENDA
Pilot set up and objectives
Results from market research
Cost and Efficiency of media
Conclusions
4
MARKET RESEARCH SETUP
Compare impact of several media on brand perception, media perception and sales activation
Existing customers of an other service
Invoice + banner Invoice + letter Customer Magazine Customer Magazine + letter Direct Mail Door to Door
3500 phone interviews (500 for each group) Real results from Call Center and subscriptions
Campaign objective
Target customers
Accompanying media
Market research
5
Direct Mail is well suited to create awareness on a new service
Direct Mail has the best recall rate
Direct Mail generates the highest number of inbound calls and subscriptions
Door to door has the highest ROI
Letter added ton invoice is efficient in terms of recall and subscriptions, at a very low price
Letter added to Customer magazine has no influence on article reading and subscriptions
KEY MESSAGES
6
AGENDA
Pilot set up and objectives
Results from market research
Cost and Efficiency of media
Conclusions
7
DIRECT MAIL HAS A STRONG IMPACT ON SPONTANEOUS AWARENESS
‘Which DSL Provider do you know? (spontaneous)
Percentage of respondents
N=3500
100
120
120
140
220
X 2,2
Direct Mail
Door to Door
Control Group
Invoice total
Customer Magazine total
Direct Mail increases spontaneous awareness by 220%
8
THE MAIN RESTRAINT TO SUBSCRIPTION IS THE LACK OF INFORMATION
59%
19%
3% 2% 2% 2%
10% 11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
did not knowthis DSL service
do not knowenough aboutDSL service
too expensive no interest no trust quality other dk
9
DIRECT MAIL SIGNIFICANTLY REDUCES THIS RESTRAINT
59%
67%63%
48%
58%55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
all no media exposure invoice TOTAL DM TOTAL MAGAZINE D2D
•% Did not know this DSL offer
10
Percentage of respondents*
Direct Mail
Invoice + Letter
Door to Door
Invoice + Banner
Cust. Magazine + Letter
Cust. Magazine 5
5
5
6
18
21
X 4
DIRECT MAIL DEMONSTRATES A HIGH RECALL RATE, TOGETHER WITH THE LETTER ADDED TO INVOICE
Letter added to Magazine does not increase recall & recall content rate
11
… AND THE BEST ‘RECALL CONTENT’
Percentage of respondents
ReceivedRecall DSL message
Media funnel
“Do you remember a … from DSL Provider ?”
“What did you do with the … from DSL Provider?”
Read Recall content
“Can you describe the … from DSL Provider ?”
DM 72100 21 12761521
INVOICE + BANNER 36100 5 15625
INVOICE + LETTER 48100 18 666918
MAGAZINE 79100 5* 25445
DOOR TO DOOR 67100 8 47968
N= 500
N= 500
N= 500
N= 500
N= 500
N=500
MAGAZINE - LETTER 79100 5* 25445
DM performs better than any other media at each step of the media funnel
DM performs 2x better than Invoice + Letter for content recall
12
…. LEADING MOST INBOUND CALLS
ReceivedInbounds calls
Media funnel*
Proposal Sent
* INDEXEDSource: DSL Provider & Post Teams analysis
DM triggers 1% inbound calls, higher than other media
DIRECT MAIL 181 000 10,7 1,921,07
INVOICE + LETTER 235,5 1,260,551 000
INVOICE + BANNER 00,1 00,011 000
TOTAL MAGAZINE 230,07 0,0160,071 000
DOOR TO DOOR 131,2 0,160,121 000
13
AGENDA
Pilot set up and objectives
Results from market research
Cost and Efficiency of media
Conclusions
14
NEW SUBSCRIBERS FIGURES
Group
Direct Mail 100
Door to Door total** 100
Customer Magazine 100
Customer Magazine+ Letter 100
Invoice 100
Invoice + Letter 100
Control 100
Total*Online
0,01
0,01
0
0
0,01
0,01
0
TeleSales
0,08
0,04
0
0,03
0,02
0,04
0,04
DSL Provider Centers
0,11
0,09
0,04
0,03
0,02
0,03
0,02
0,19%
0,14%
0,04%
0,05%
0,05%
0,09%
0,06%
63%
55%
Direct Mail has the best conversion rate : 0,19%, followed by Door to Door (0,14%) and Invoice + Letter (0,09%)
Door to Door creates traffic in shops better than any other media : 63% of subscriptions received via this channel
15
COMPARISON OF UNITARY COSTS OF MEDIA
Source: DSL Provider & Post Teams analysis* Ewtrapolation : 75.000 DM / 2.000.000 Door to Door
COST / RECEIVER (€)
Direct Mail
Door to Door
Cust. Magazine + Letter
Invoice + Letter
Direct Mail is the most expensive media in this pilot
0,64
0,13
0,20
0,23
0,31
0,94
Extrapolation Basis
Aided
*
*
16
COMPARISON OF MEDIA EFFICIENCY IN SALES ACTIVATION
Source: DSL Provider & Post Teams analysis
EFFICIENCY (% conversion subscribers
/ receivers)
Direct Mail
Door to Door
Cust. Magazine + Letter
Invoice + Letter
DM is the most efficient media for subscribers conversion
Door to Door is very efficient as well, distributed in a “targeted” area
0,05%
0,09%
0,14%
0,19%
17
ROI / MEDIA
Source: DSL Provider & Post Teams analysis
19
40
198
326
RETURN ON INVESTMENT (%)
Direct Mail
Door to Door
Cust. Magazine + Letter
Invoice + Letter
Every investments in tested paper media prove to be profitable
18
AGENDA
Pilot set up and objectives
Results from market research
Cost and Efficiency of media
Conclusions
19
The key conclusion of this pilot, in which the DSL Provider and the Post have tested several direct media, is probably that the paper still has a strong power on sales activation, since all these media had a positive Return On Investment
Direct Mail has a very good impact on product awareness, recall rate and number of subscriptions.
Door to door is the second activation tool. And thanks to its low cost, this media has the highest ROI.
Letter added to invoice had a good impact on recall rate and subscriptions in this DSL campaign, at a very low cost.
Letter added to Customer Magazine had a limited impact on article reading, but could be tested differently, for example with personalized covers or contents
CONCLUSIONS