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Case Study: Technology, Consumer and Business-to-Business

How a cohesive testing strategy revived a direct mail program for a leading manufacturer of color printers.

Situation: A leading manufacturer of color printers was experiencing declining response and conversion rates for its ongoing direct mail lead generation program. The printer market was saturated and highly competitive. The company was also launching several new printer products, and was simultaneously re-branding a new product it had recently acquired.

The company needed to improve its lead generation program so that it consistently generated a high volume of quality leads for sales, as well as incorporated its new product launches, and re-branded the new product it had acquired.

Strategy: The overarching strategy, developed by the Anderson team, was to develop and implement an aggressive direct mail testing plan to identify the most productive target markets, data sources, contact plan, offers, and creative concept and format. To maximize ROI, testing results would ultimately be incorporated into the overall lead generation program, as well as be applied to direct mail campaigns for the client's new product launches and the acquired product's re-branding.

Solution:

		Strategic Testing Plan: We developed a comprehensive testing plan to help identify the most effective target audience segments, external list sources, and client-internal data sources, as well as the most productive and cost-efficient offers, creative, and contact strategy.
		Ready for Roll-out: Testing results were applied to the client's overall direct mail lead generation efforts for its printer products, as well as to its new product launches and re-branding of the new product they acquired.
		Smart Measurement and Reporting: We improved the client's tracking and reporting system, so that we could determine ROI for their direct mail programs. The improved reports tracked response rate, lead qualification rate, and customer acquisition rate for each data source and creative/offer version, as well as cost per response, cost per lead, and cost per sale.

Results: This initial test program turned into an ongoing, long-term relationship. The client has exceeded their goals for nearly all direct mail campaigns since the test was implemented, improving response rates by 100%. The client has experienced a 10%—15% increase in sales conversions due to the increased quality of their responses/leads. Anderson also works with other business groups within this client's company, such as their e-commerce team, developing and implementing integrated multimedia direct marketing campaigns that include print and online advertising, direct mail, email, and search.

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