targeting travelers with multi channel direct - fresh data case study
DESCRIPTION
In this case study, we’ll discuss how a B2C client in the hospitality/travel industry utilized a multi-channel approach to increase response rates amongst both loyalty program members as well as those on their prospect file. This program will demonstrate how this client’s current customers and prospects positively respond to good offers presented appropriately through direct mail, and were even more responsive when email is added to the mix. We’ll also touch upon how response rates varied across mediums between existing loyalty program members and pure prospects.TRANSCRIPT
Fresh Data Case Study:
Targeting Travelers with Multi-Channel Direct Marketing
www.dataservicesinc.com
Overview:
• In this case study, we’ll discuss how a B2C client in the hospitality/travel industry utilized a multi-channel approach to increase response rates amongst both loyalty program members as well as those on their prospect file.
• This program will demonstrate the client’s current customers and prospects positive response to good offers presented appropriately through direct mail, and the further increase in response when email is added to the mix.
• We’ll also touch upon how response rates varied across mediums between existing loyalty program members and pure prospects. www.dataservicesinc.com
Goals:
• Increase the number of customers in “luxury” categories.
• Increase membership in customer loyalty program.
• Investigate the effectiveness of direct mail and email individually and when paired.
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Program:
Offer: • Discounts up to 20%
off regular rates.• Opportunities for
loyalty program members to add benefit points.
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Program:
List Selection & Segmentation:• Using the common profile for current customers within
the loyalty program, in this case women aged 45 or older having above-average levels of income and education, prospect lists of names and addresses of consumers living in zip/postal codes associated with this demographic were acquired.
• These two populations, loyalty program members and acquired names, were then subdivided into four categories, one of whom received no communication and three of whom received direct communication: direct mail followed by email, direct mail only and email only.
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Implementation:
• Colorful brochures mailed in early part of the year, when many people make summer travel plans.
• Email messages with similar graphics followed one week later.
• Telephone research surveying began after the two campaigns were completed to explore the knowledge of and attitudes regarding topics pertinent to the client’s business, intention to travel and intention to join the client’s loyalty program.
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Outcome:
In Short:
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Statistics:
• Loyalty program members who received the direct mail brochure had open, read and content-recall rates upwards of 60% higher than those who received only email.
• Prospects who received both the brochure and email disclosed open, read and content-recall rates more than 20% higher than those who received only the email as a stand-alone.
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Sales Data:
• Loyalty program members who received only the brochure were 30x more likely to buy than those who received only the email.
• Puzzlingly, those members who received both the brochure and an email were only 14x more likely to purchase than the email-only recipients.
• Among prospects, the brochure recipients were twice as likely to purchase as the email-only recipients.
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Conclusions:
• As stand-alones, Direct Mail outperformed Email within both the loyalty member and prospect segments.
• As you may expect, data suggests that enhanced ROI is to be found in acquiring loyalty club members and continuing to mail them offers. Whether one should follow that mailing with an email seems to us to require additional testing.
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About Data Services, Inc.:Founded in 1967, Data Services is a leading provider of multichannel services to a global client base of direct & interactive marketing organizations spanning both geographic locations & industrial verticals. With services including US, Canadian & International Address Hygiene, Merge/Purge, NCOA, Online List Count & Segmentation Tools, Email & Reverse Email Appends, Demographic Appends, Geo-Targeting, Email Broadcasting, and much more, Data Services, Inc. provides a one-stop-shop for your worldwide multi-channel marketing needs!
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