 |
Marketing Challenge
An engineering manufacturer needed a more effective way to generate sales leads for
its full range of temperature control products and engineering design services.
Direct Marketing Application
B-to-B/Lead Generation and Database Building
Background
The company had relied almost entirely on trade journal print advertising to promote
its products and generate leads. However, response had been disappointing and little
was known about which publications were most effective in reaching the target audience.
The company uses distributors and manufacturers' reps to sell its products. Because
its own sales people do not work directly for the customer, it is difficult to control
the sales process once the lead is passed on.
What We Recommended
We recommended a three-pronged approach:
- Use a direct mail questionnaire to reach prospects for both current and future
business. By asking the right questions, we would be able to find the specifiers
and decision-makers, then ñ based on their responses ñ grade them for future needs
and urgency of follow-up.
- Maintain all leads internally for additional follow-up. Although the sales process
was, in large part, out of their hands, they could maintain contact with these prospects
using a follow-up postcard.
- Evaluate key components of the mailing by testing three selected mailing lists
and two different premiums (incentives for completing the survey).
What We Did
We developed a direct mail package that included a #10 window envelope, a one-page
(two sided) survey and a business reply envelope. The survey was pre-addressed and
personalized for easy response. The package was printed in two-colors and mailed
at the standard bulk rate.
We researched approximately 10 mailing lists, reviewed selection criteria for each
individual lists, then, with input from client staff, we placed orders for three
lists.
We worked with the client to acquire two premiums to be used for incentives.
We placed tracking codes for each of the three lists and the two premiums.
Approximately 20,000 pieces were mailed over a three-month period.
How It Worked
Response rates were tracked and analyzed separately for six different test cells,
but the overall response was 4.1%.
The total cost for this mailing ñ including creative costs, printing, lists, mailing
services and postage ñ was $19,900. The cost per inquiry was approximately $24.
Subsequent Activity
All fulfillment and follow-up activity was handled internally by the client. We did,
however, make several recommendations. We recommended immediately fulfillment of
materials and prompt follow-up by sales people.
We recommended sending fulfillment packages that reflected the answers provided in
the questionnaire.
We recommended a series of follow-up mailings (or just a single postcard) to stay
in touch with prospects regardless of the follow-up sales activity.
|