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Case Study: Technology, Business-to-Business

Creating demand — and customers — for a technology leader's niche product.

Situation: In December of 2004, Anderson Direct Marketing became the agency of record for a division within a major manufacturer of printer and copier equipment. This particular division provides free color printers to qualifying organizations agreeing to a three-year service contract. Business is conducted via e-commerce, and organizations wishing to obtain a free color printer must go to the division's Web site and submit an application.

The division's past marketing history consisted of online advertising using a wide-net strategy to drive large amounts of traffic to its Web site. There were a high number of impressions across many outlets targeting the general business audience. Although this strategy did elicit a high volume of site traffic, application rates were low and qualified application rates were even lower. Consequently, the division was not meeting its customer acquisition goals. It was also experiencing heavy attrition as customers came upon the end of their service contracts.

2005 sales goals were aggressive, and the marketing budget was limited. The client needed a program that maximized the budget, as well as balanced the need to generate site traffic volume with obtaining new customers.

Strategy: Anderson developed a comprehensive demand generation program. This program used a precision targeting strategy — combined with an integrated media plan and comprehensive testing program — to generate not only Web site traffic, but qualified applications as well.

Solution:

		Identifying the most profitable audience segments: A data analysis study conducted on client's customer base revealed their most profitable industries and niche markets. Anderson focused on these segments in order to maximize opportunity for response and sales. All advertising was geared toward decision makers and influencers.
		Integrated media for a multi-touch campaign: Print and online advertising focused on key verticals to maximize the budget. The Anderson media team negotiated $125,000 in added value and merchandising from print and online outlets. Direct mail and email were used to target not only key verticals, but also to cost-effectively test additional verticals with a propensity to need — and qualify for — a free printer. We developed a comprehensive list plan that included outside data from multiple sources, supplemented by client-internal data. Offers and a call to action were incorporated into creative for all media types to increase response and sense of urgency. We also developed a Search Engine Optimization program to increase keyword performance.
		Testing for effectiveness and efficiency: Different formats for online advertising and direct mail — as well as different verticals, data sources, segment-specific messaging, and offer types — were tested to determine those that were most cost-effective.
		Curbing customer attrition: We developed a re-marketing and up-sell strategy using email and outbound telemarketing for current customers approaching the end of their service agreement.
		Continual ROI measurement to ensure program success: We developed a comprehensive reporting and measurement system to track performance by media type, by individual media outlet and data source, by industry, by segment, and by search keyword. Based on these results, we optimized the media plan continually.

Results: The new program was highly successful. The targeted approach, combined with the multi-touch contact strategy, generated qualified traffic — and applicants — to the client's Web site. Site hits, applications and qualified applicants have exceeded objectives by over 100%. New and profitable niche markets, as well as key learnings, were identified through the testing program. Customer retention has also improved.

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