Belgian Post and Player A have together conducted a market research among 1800 Player A‘s-customers on a campaign promoting Player A’s new Product to existing customers (cross selling).
The market research was conducted during the second half of 2005 on three target groups:
clients who were exposed only to an Above-The-Line campaign (reference group)
clients who received a Direct Mail
clients who received an e-mail (on an active e-mail account)
The market research shows that:
Direct Mail increases consideration and intention to buy vs e-mail + ATL and ATL only leading to highest purchase rate.
Net campaign impact of e-mails was positive for customers with active e-mail account, net campaign impact of Direct Mail was positive on all existing customers targetted .
Direct Mail shows higher recall rates than e-mail and ATL media except TV. (existing ATL campaign ongoing during market research)
Content recall for Direct Mail is 83% higher than for e-mail.
Direct Mail and e-mail were better perceived than ATL .
PILOT SETUP Target customers Media-mix Market Research Methodology Campaign goals
Prompt sales of new product
1800 phone interviews
DIRECT MAIL INCREASES CONSIDERATION AND INTENTION TO BUY vs. E-MAIL+ATL AND ATL ONLY, LEADING TO HIGHEST PURCHASE RATE Percentage of respondents (80/20)* * Discounted for certainty in responses: 80% of ‘certainly’ and 20% of ‘yes, maybe’ answers taken into account ** Actual subscription rates measured on 10,000 potential subscribers per media group; Source: Market research on 1800 Player A’s existing customers.
Direct mail has highest impact throughout product funnel
Product funnel “ Do you know Product?” “ Would you consider switching to Product in the coming year?” Consideration to buy* Intention to buy* “ Do you intend to switch to Product in coming months?” Actual subscription rate** +29% +1% ATL + DM 100 12.1 12.1 7.1 59 4 1.3 ATL only 100 9.5 9.5 5.5 52 4 0.8 ATL + Email 100 9.7 9.7 5.5 57 5 1.2 Product awareness Consideration to buy* Consideration to buy* Consideration to buy*
DIRECT MAIL INCREASES CONSIDERATION TO BUY ON ACTIVE AND INACTIVE E-MAIL ACCOUNTS Percentage of respondents
Direct mail increases ‘consideration to buy’ on both active and inactive E-mail accounts vs. ATL only (+33% and +10% respectively)
E-mail increases ‘consideration to buy’ of active E-mail users vs ATL only (41% vs 36%)
(212) (208) (378) 100 100 100 48 41 45 48 41 45 (519) 100 41 41 Product funnel “ Do you know Player A’s Product ?” “ Would you consider switching to Player A’s Product in the coming year?” Consideration to buy Intention to buy +10% +33% Active e-mail accounts Inactive e-mail accounts (386) 100 36 36 +14% (x) Sample size Source: Market research on 1800 Player A’s existing customers ATL + DM ATL only ATL + DM ATL + e-mail Product awareness Consideration to buy* Consideration to buy* ATL only Small sample sizes in next steps of funnel not covered due to low significance <50%
NET CAMPAIGN IMPACT WAS POSITIVE FOR E-MAIL AND DIRECT MAIL Indexed units Incremental revenues Campaign cost** Net revenue impact Subscribers gained 250 74 176 * Campaign targetted to Player A’s existing customers ** Cost per E-mail is ~0 EUR Source: Market research on 1800 Player A’s existing customers 100 0 100 100 250
E-mail has clear positive impact for customers with active E-mail accounts
Direct mail has clear positive impact on all Player A’s existing customers
939 Target profile* All customers (200) Customers with active E-mail accounts (100) E-mail Direct Mail
DIRECT MAIL GENERATES HIGHER RECALL RATE THAN E-MAIL AND ATL (EXCEPT TV) Percentage of respondents*
TV campaign generates highest recall rate
Recall rate of DM is 75% higher than recall rate of E-mail and better than all other media except TV.
0 70 TV 3 49 DM** 28 E-mail** 18 Newspaper magazine 8 Radio 7 Poster * Percent of respondents in DM group (for DM), E-mail group (for E-mail), reference group (for ATL) ** Aided recall with description of medium used only tested for DM and E-mail Source: Market research on 1800 Player A’s existing customers Aided recall Aided recall with description** +75% 0 Extensive ATL campaign ongoing during market research
CONTENT RECALL FOR DIRECT MAIL IS 83% HIGHER THAN FOR E-MAIL Percentage of respondents Media funnel 100 27 49 55 22 100 16 28 57 12 49 28 81 75 “ Do you remember receiving a DM / email from Player A’s product?” “ What did you do with the DM / email from Player A’s product?” “ Can you describe what the DM / email from Player A’s product was about?” Direct Mail is more effective throughout the media funnel leading to an 83% higher content recall rate compared to e-mail * Aided recall with description ** Spontaneous recall based on correct description of mailing received *** These results are based on database of frequently used e-mail accounts Source: Market research on 1800 Player A’s existing customers +83% DM Received DM / E-mail Recall DM / E-mail* Read DM / E-mail Recall content** Email***
DIRECT MAIL AND E-MAIL WERE BETTER PERCEIVED THAN ATL 'To which extent do you agree with the following statements concerning the ad for Player A’s Product?* ' Rating on a scale 1 to 10*; % Completely or somewhat agree (% of 7+) The ad/mailing was credible The ad/mailing convinced me to become / remain client The message of the ad/mailing was clear The ad/mailing was relevant to me I like the ad/mailing Percentage of respondents recalling media * 1: I completely disagree, 10: I completely agree Source: Market research on 1800 Player A’s existing customers
Perception of respondents on DM and E-mail is better than the ATL perception
DM scores better on
More convincing when considering becoming a Player A’s client
ROI CALCULATION STEPS Incremental revenues gene-rated by campaign Campaign net revenue impact EUR Campaign investment EUR Incremental revenues per customer EUR Number of customers taking subscription Number of customers exposed to media Impact on customers taking subscription % EUR Based on Player A’s actual subscriber figures NPV on 2 year period taking into account special promotion Only short term revenues, no long term component Creation, production, and shipping costs of DM/email
DIRECT MAIL AND E-MAIL HAD NO IMMEDIATE IMPACT ON BRAND PERCEPTION… DM+ATL E-mail+ATL ATL 'To which extent do you agree with the following statements concerning Player A’s Product? ' Rating on a scale 1 to 10*; % Completely or somewhat agree (% of 7+) Percentage of respondents
DM nor e-mail have immediate impact on brand perception on top of ATL
This could be due to the extensive ATL campaign running during research
* 1: I completely disagree, 10: I completely agree Source: Market research on 1800 Player A’s existing customers Easy to contact Reliable Offers a lot for your money Considered as best choice by most people Informed well Provider I have had good experiences with Provider I feel good with Quickly solving problems Having best offers Having large sales network
…COMPARED TO RESULTS FROM OTHER PILOTS 'To which extent do you agree with the following statements concerning brand x? ' Percentage of respondents Rating on a scale 1 to 5; % Completely or somewhat agree (% of 4 or 5) Professional service Good reputation Original advertisement Wide range of insurance products Products easy to understand High compensation level Excellent value for money Flexible payment options Products customized to my needs Easy to contact TV Direct Mail Direct Mail Control group (no media) Makes my life easier Has modern and attractive packaging Is an innovative and modern brand Is convenient to use Is dedicated to continuously improve its products Offers a complete range of products to deliver the best results for each need Is an expert in its field Rating on a scale 1 to 10; % Completely agree (% of 8+) EXAMPLE OF CLIENT IN FMCG SECTOR EXAMPLE OF CLIENT IN BANKING SECTOR