Kele, a leading supplier of building automation products, engaged Bluewolf to optimize their marketing automation strategies after struggling to effectively target customers using their existing systems. They implemented a segmentation campaign based on customer buying cycles using a recency, frequency, monetary (RFM) model, leading to significant increases in customer engagement and revenue, including $300,000 in additional transactions. Moving forward, Kele aims to leverage customer data analytics to better understand and anticipate customer needs.

1. 1
The Agile
Enterprise
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The Agile
Enterprise
“With Bluewolf, Kele gets a whole team of experts who always make
us feel like we’re their only client.”
Scott Hauck
Director of Digital Marketing & Demand Generation, Kele, Inc.
company background
Kele is the leading supplier of building automation products, which refers to the computer
networking of electronic devices designed to monitor and control the mechanical, security,
safety, lighting, and climate systems in a building. Kele has been an innovator in the way
it develops products and services its customers, which has led the company to nearly 30
years of continuous growth.
a new marketing vision
Kele brought on Scott Hauck, Director of Digital Marketing and Demand Generation, in
November of 2012. Kele had implemented salesforce.com a few years prior, and had been
using Eloqua’s marketing automation system for just over a year - but they were struggling
to maximize the value of their investment. Kele and Hauck had a vision for transforming how
they could target new and existing customers, but also understood that their current state
included holes in both solution design and processes:
Marketing was basing their messages on a segmentation structure that they thought was
accurate, but in reality, was different than what the buying cycle stages actually were.
Little was being done to engage customers and reward them for their advocacy.
Messages weren’t being tailored to specific needs, and there was a lack of personalization.
determining buying cycle segments
Hauck engaged Bluewolf as a marketing automation expert to help him transform the way
Kele engages its customers. “I needed someone to do the heavy lifting and integration work,
and those people are very few and far between,” Hauck said. “After about five months of
not finding the right resource to bring in-house, I found Bluewolf. The team was very honest
and transparent up front, and I immediately felt that the ‘trust-factor’ was there.”
Bluewolf and Hauck’s team decided that the first priority was to analyze the customer base
Kele Achieves Dramatic ROI from
Marketing Automation Initiatives
challenge
Kele had implemented Salesforce a
few years prior, and had been using
Eloqua’s marketing automation
system for just over a year - but
they were struggling to maximize
the value of their investment.
Kele needed a better way to target
and market to new and existing
customers.
solution
Kele brought Bluewolf on board
to help them develop a marketing
segmentation campaign that would
target customers at different
stages in the buying cycle. The
buying cycle campaigns were
structured using a recency,
frequency, monetary (RFM) model
and were automated in Eloqua.
results
Since June 2013, Kele has doubled
the number of campaign members
in its lead nurture program, and
has increased open-rate and as
well as opt-in rate. Kele has booked
an additional 75 transactions
($300,000+ in value) based on the
A/B testing, and has dramatically
increased the average ROI per
campaign in the past year.

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and compile accurate segments that reflected Kele customers’ buying patterns. They then
created “buying cycle campaigns,” which are automated campaigns that target different
customers in a recency, frequency, monetary (RFM) model.
Bluewolf helped Kele to identify nine buying cycle segments, with corresponding campaigns
in Eloqua:
1. Newbies: Customers that just purchased for the first time. Kele entices them with a
discounted offer to try and get them to move up into the Kele Catch-On segment.
2. Kele Catch-On: Customers who have purchased 3-5 times in the last 3 months. They
are now catching on to the company’s value proposition.
3. Kele Smart: Customers who understand Kele’s value proposition, understand the value
of Kele’s services, and are becoming a frequent buyer (6 or more purchases in the last
3 months).
4. Kele Promoters: Top-tier customers from the Kele Smart category. They promote Kele
via word of mouth, buy frequently (average of once a week), and usually do not go more
than 3 months without buying.
5. Urgent Win-Backs: Kele Promoters who have gone more than 3 months without buying.
They are automatically picked up by one of Kele’s lead-gen reps, and are contacted to
try and uncover any issues/concerns.
6. Win-Back: Customers within the Kele Catch-On or Kele Smart segments who suddenly
have gone more than 3 months without buying.
7. One and Done: A customer who has purchased 1-2 times, but has not bought since.
8. Drop-Off: A pool of customers who have not purchased in over a year.
9. White Space: Potential customers who are on file, but have never bought from
Kele before.
Each of the email campaigns related to these nine segments included a mix of price and
brand promotions, incentives, and discounts, tailored to a customer's position in the
buying cycle. For example, if a customer was in the Drop-Off segment, Kele might offer a
20% discount to try to lure them back. If targeting Newbies, the campaign might focus on
educating the customer, and would promote the company’s value proposition.
success with A/B testing
After identifying the proper segmentation, Bluewolf advised Hauck to test two different
campaigns at the same time with two separate samples from Kele's database (one received
2xthe number of
campaign members in
six months
$300,000
additional revenue in 2013
$250,000
campaign profit margin
ROI on marketing
campaigns
2012 2013
$2,400 | $50,000
Marketing Automation
Solution used
Campaign Wins

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coupons, and the other did not) to see which garnered better results. Using the A/B testing
model, Kele gained some critical insight about its customers’ buying behavior that it was not
privy to prior to this experiment:
Kele customers are fairly price sensitive and even relatively small discounts can quickly
incent customers to buy.
Volume discounts were much more effective than a flat dollar-off promotion.
Customer responses to specific product ads were dramatically higher than more generic
manufacturing-driven communications (up to 10x higher).
The customer base that received coupons ordered 5% more than the non-coupon group,
and also brought in 16% more revenue.
ROI doesn’t lie: marketing automation is working
Kele has seen dramatic, almost immediate results based on the marketing services work
with Bluewolf:
In 6 months, Kele has doubled the number of campaign members in its lead nurture
program, and has increased open-rate and as well as opt-in rate.
Kele has booked an additional 75 transactions ($300,000+ in value) based on the
A/B testing.
The campaign profit margin is $250,000.
In 2012, the average ROI per campaign was about $2,400 vs. $50,000 in 2013.
Kele has seen the strongest increase in purchases from its previously inactive
customer base.
Kele’s plan for the future
“In the past few years, I’ve seen marketers go from static platforms to the cloud, and in doing
so, gain incredible access to customer data - so much so, that at times they don't know
what to do with it," Hauck said. “At Kele, we are aiming to be analytics focused, and mine
this data to determine what our customers need before they even know they need it.”
Hauck believes that marketing is the brains and strategic vision for how customer-facing
technology is used. “We definitely plan to continue to work with Bluewolf. With Bluewolf,
Kele gets a whole team of experts who always make us feel like we’re their only client.”
“The Bluewolf team
was very honest and
transparent up front,
and I immediately felt
that the ‘trust-factor’
was there.”
Scott Hauck
Director of Digital Marketing
and Demand Generation,
Kele, Inc.