Case Study 1 - ROI
Project | Buick Interchange Newsletter/Brochure
Segment | Direct Marketing – Lead Generation, Loyalty
Program objectives:
>Increase loyalty among current Buick owners and convert competitive car owners to Buick models.
Significant results reported by user:
>Advertising/marketing cost-to-sales ratio was less than 1.2%, which is 56% lower cost per sale than the industry average of 2.7%.
>Total “lift” (improvement over previous owner campaigns) was 595%.
>Response rate: 6.36%.
>Nearly 20,000 automobiles sold as result of this campaign, generating $494 million in sales revenue.
DESCRIPTION | Current and former Buick owners, competitive vehicle owners. Some of the customer interaction phases continued to run for another six months. 500,000 prospects received series of personalized mailings. Through a series of direct mail pieces, Buick worked to establish a “pre-ownership” feeling among prospective car buyers.
Demographically segmented prospects were asked for feedback on what they were looking for in a car. These initial pieces only presented car models whose costs were suited to each segment. For instance newsletters targeting 35-year olds with two kids featured a Regal Century while well-off 60-year olds received information on a Park Avenue. The final brochure incorporated the feedback from the prospective buyer including preferred model, car and features. For instance if the prospect noted that safety features were important the final brochure might include detailed information on airbags and anti-lock brakes. The final piece was a four-color 8 1/2” x 11“ brochure with six pages.
Picture of consumer’s preferred model in the color of his/her choice, personalized letter, name and address of consumer, information on features most important to consumer including related images.