Download - Impact Survey Telecom
CONFIDENTIAL
Capturing the full potential of DM within the telecom sector 360° Impact survey
2
Player A Direct Mail Pilot Results
KEY MESSAGES
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.
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Player A Direct Mail Pilot Results
PILOT SETUP
Target customers
Media-mix
Market Research
Methodology
Campaign goals •Prompt sales of new product
•Existing customers
•DM+ATL
•E-mail +ATL
•ATL only
•1800 phone interviews
Cross-selling
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Player A Direct Mail Pilot Results
*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 INCREASES CONSIDERATION AND INTENTION TO BUY vs. E-MAIL+ATL AND ATL ONLY, LEADING TO HIGHEST PURCHASE RATEPercentage of respondents (80/20)*
Direct mail has highest impact throughout product funnel
ATL + DM 100 12.112.1 7.159 4 1.3
ATL only 100 9.59.5 5.552 4 0.8
ATL + Email 100 9.79.7 5.557 5 1.2
Product funnel
Product awareness
Consideration to buy*Consideration to buy*
“Do you know Product?”
“Would you consider switching to Product in the coming year?”
Considerationto buy*
Consideration to buy*Consideration to buy*Intention to buy*
“Do you intend to switch to Product in coming months?”
Consideration to buy*
Actual subscription rate**
+29%+29%
+1%+1%
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Player A Direct Mail Pilot Results
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%)
ATL + DM
ATL only
ATL + DM
(212)
(208)
(378)
100
100
100
48
41
45
48
41
45
ATL + e-mail (519) 100 41 41
Product funnel
Product awareness
Consideration to buy*Consideration to buy*
“Do you know Player A’s
Product ?”
“Would you consider switching to Player A’s Product in the coming year?”
Considerationto buy
Consideration to buy*Consideration to buy*Intention to buy
+10%+10%
+33%+33%
Active e-mail accounts
Inactive e-mail accounts
ATL only (386) 100 36 36
+14%+14%Small sample sizes
in next steps of funnel not covered
due to low significance <50%
(x) Sample size
Source:Market research on 1800 Player A’s existing customers
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Player A Direct Mail Pilot Results
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 EURSource:Market research on 1800 Player A’s existing customers
100
0
100
E-mail Direct Mail
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
Target profile* All customers
(200)
NET CAMPAIGN IMPACT WAS POSITIVE FOR E-MAIL AND DIRECT MAILIndexed units
Customers with active E-mail accounts (100)
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Player A Direct Mail Pilot Results
DIRECT MAIL GENERATES HIGHER RECALL RATE THAN E-MAILAND 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.
28
46
0
70TV
3 49DM**
28E-mail**
18Newspapermagazine
8Radio
7Poster
*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-mailSource:Market research on 1800 Player A’s existing customers
Aided recall
Aided recall with description**
+75%+75%
Extensive ATL campaign
ongoing during market research
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Player A Direct Mail Pilot Results
CONTENT RECALL FOR DIRECT MAIL IS 83% HIGHER THAN FOR E-MAIL
Percentage of respondents
Media funnel
DM 100 2749 5555
Received DM / E-mail
Recall DM / E-mail*
Read DM / E-mail
Recall content**
22
Email*** 100 1628 5757 12
4949
2828
8181
7575
“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 accountsSource:Market research on 1800 Player A’s existing customers
+83%+83%
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Player A Direct Mail Pilot Results
0
20
40
60
80
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 agreeSource: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– Message clarity – Mailing relevance – More convincing when
considering becoming a Player A’s client
DM
ATL
10
Player A Direct Mail Pilot Results
BACK-UP
BACK-UP
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Player A Direct Mail Pilot Results
ROI CALCULATION STEPS
Incremental revenues gene-rated by campaign
Incremental revenues gene-rated by campaign
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
Campaign net revenue impactCampaign net revenue impact
EUR
Campaign investmentCampaign investment
EUR
Incremental revenues per customer
Incremental revenues per customer
EUR
Number of customers taking subscription
Number of customers taking subscription
Number of customers exposed to media
Number of customers exposed to media
Impact on customers taking subscription
Impact on customers taking subscription
%
EUR
Creation, production, and shipping costs of
DM/email
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Player A Direct Mail Pilot Results
DM+ATL
E-mail+ATL
ATL
DIRECT MAIL AND E-MAIL HAD NO IMMEDIATE IMPACT ON BRAND PERCEPTION…
'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 agreeSource:Market research on 1800 Player A’s existing customers
0
20
40
60
80Easy to contact
Reliable
Offers a lot for your money
Considered as best choice by most people
Informed wellProvider I have had good experiences with
Provider I feel good with
Quickly solving problems
Having best offers
Having large sales network
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Player A Direct Mail Pilot Results
…COMPARED TO RESULTS FROM OTHER PILOTS
'To which extent do you agree with the following statements concerning brand x?' Percentage of respondents
0
20
40
60
80
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
0
20
40
60
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