Challenge

The CMO of a regional wireless company needed to find new solutions to quickly increase sales. She was looking for marketing tools that were measurable, could create new activations at a low cost, and could improve the Average Revenue Per User (ARPU) of new customers.

Because of its deep experience and insights from other successful wireless direct sales programs, RPM was chosen to create and execute the client’s next acquisition test program.

Four key campaign goals were identified for the first test program:

1. Quickly establish a “Control” direct mail structure that would drive ongoing sales with a marketing cost per gross activation (MCPGA) of $150 or less.

2. Identify the right list segmentation, offers and creative tactics for selling high-revenue products and service plans (high ARPU).

3. Test individual and family plan customer segments with an additional line or family plan offers.

4. Test both consumer acquisition and small business segments within the program.

Actions

The RPM team started with a review of the client’s past direct mail campaigns. It was clear that by applying new DM formats and a data-driven testing process, there was a huge opportunity drive sales growth in the market. RPM presented the CMO and marketing team with a step-by-step, direct mail plan that would create a powerful, efficient and accountable acquisition channel.

Once the plan was approved the team moved quickly into execution. The first acquisition test program used the Rapid Performance Method to identify the highest performing combinations of list, creative and offer. The structure of theinitial test program reduced the client’s risk of failure and ensured they would gain valuable and actionable marketing insights.

The RPM test included acquisition of prospect data sources, customer segments, and small business groups with appropriate creative and offers to match the audience. Data was selected and tested with the goal of pinpointing the audience for higher-end phones and higher revenue plans.

RPM’s creative team developed four cost-efficient package concepts based on insights about proven top performers for similar wireless direct mail programs. Six offer variations were included in the test to gain data about which components of the offer could drive sales of higher value rate plans and data plans.

Results

Using a match-back analysis, sales, MCPGA, and ARPU were analyzed for all aspects of the test program.

Rapid Performance Method testing definitely paid off. The client was ecstatic to find the overall sales results for the initial test campaign were over 82% betterthan expected.

Most important, the marketing team now had detailed results data on what drives sales most effectively in each segment of their market. They found the lists, offers, copy and package elements that generate the highest sales rate, the lowest MCPGA and the highest ARPU.

Acquisition segments performed better than expected, with over 75% of the test cells beating the clients marketing cost-per-activation (MCPGA) goal. The top performing package format and offer within the test lifted the acquisition sales rate by over 45%above anything they had mailed in the past and decreased the cost-per-activation by 53%.

The top performing customer additional line results showed a cost per new line of service was less than 30% of the client’s target.And the small business acquisition portion of the program also exceeded performance expectations.

Based on the results, the CMO has expanded the direct mail acquisition program. The client now mails consistently to generate a predictable, steady flow of new activations and to grab market share away from the competition. They rely on the RPM team to make program management easy and to further optimize results and drive down the MCPGA.