Case Study: Direct Mail vs. Email Marketing with Video
Here are some amazing statistics from a client of ours that recently did both a direct mail post card and an online marketing video sent out via email to the exact same client base. They did both methods because they wanted to make sure all of their customers were touched and also because they didn’t have all of their customers email addresses. Due to client confidentiality limitations, we cannot disclose our client’s name.
Business Needs
The business is a service oriented operation with predominantly a business-to-consumer base. They also have a reputation as an environmentally responsible company and try to do what they can to diminish the amount of waste they create. This business was beta testing a new service which would streamline how their customer base would interact with their services. To clarify these changes, answer any questions their customers may have, etc. they needed to reach out to their entire regional customer base of about 16,000 customers. Their objective wasn’t a direct call to action for their customers – but simply to notify and educate them of the new service and to make sure their customers knew who to contact if they had any questions about the service.
Solution
Their internal marketing department had already planned to send out a postcard with a follow up brochure to their entire base of 16,000 customers. They did have over 6400 email addresses for a portion of their client base, so we suggested incorporating an email marketing e-newsletter linking to a short interactive video explaining the changes to the service and including helpful links for more information, download a PDF of the brochure or to contact someone at the company. The postcard was sent out first and the email newsletter with links to the video was sent out two weeks later.
Results
Postcards sent: 16,000
Direct replies & requests for further information: 12 or 0.075%
(responses were entirely phone calls about the program)
Costs: includes design & printing of postcard, ink jet printing of addresses and postage = $5,470*
*if you include the design & printing, ink jet printing of addresses and postage for the brochure as part of this campaign – the overall cost was $12010.
Emails Sent: 6406
Statistics:
- Open Rate (OR) – 43.8% or 2804
- Click-Through Rate (CTR) – 44.7% or 1254
Direct replies & requests for further information: 146 or 2.28%
(responses were entirely email responses about the program).
The email responses varied – many were requesting further information, others were thanking the company for how clearly the email, PDF and video explained the upcoming changes to their services and a handful expressed gratitude for the company keeping their message environmentally friendly by using email with the video.
One respondent when asked about the post card remarked that they “didn’t remember ever seeing it” and assumed that they had “thrown it with the rest of the junk mail in the recycling bin”.
Costs: includes email service provider subscription*, web hosting provider & domain for landing page*, design for email newsletter & landing page to host video, PDF and FAQs about program and the online video production = $4176
* Email Service Provider (ESP), domain registration and web hosting were all yearly billing costs included in the overall budget for this one campaign.
Final thoughts
From the perspective of action the clear winner was email marketing with video which garnered a response rate that was 11x higher than direct mail. While their varied customer demographic will never allow for a completely emailed list, the results from direct responses and the ability to track the emails effectiveness through the email service providers statistical tracking data are obvious.
From a cost perspective on the single campaign its also clear that email marketing with video was obviously not only more effective but far less expensive. This is especially noticeable when you factor in that the email service provider, domain registration and web hosting costs (in the amount of $901) were all for one full year, not just this single campaign.
This brings up another important issue, which is that this service was only launched to a fraction of their customer base as part of a beta test of the program. So if they choose to open the program to a wider selection of their customer base – with direct mail all of their production costs will repeat (with the exception of their initial post card design costs if there are no edits to the content) while with email and video they will absorb a fraction of those email service provider and web hosting yearly fees and they may need to tweak the email content but other than that the second blast of this information using email marketing and video is completely paid for and they have endless distribution.
The company’s program director expressed his thoughts on how the campaign worked out by sharing, “E-mail made it so much easier for our customers to respond because they could simply click to reply to get more information. They also loved the fact that the video so clearly illustrated how the new service would work.”
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Online Video Driving Automotive Industry Recovery
In a great article recently published on the Online Video Insider by Eric Franchi, some great statistics and insight were shared which are particularly timely given Chrysler’s and General Motors’ recent bankruptcy announcements. Perhaps as they pick which road to take the companies future on they should reassess their level of participation in social media and particularly online video.
Here were a few of the highlights from that post for the automakers to keep in mind and my thoughts on these suggestions:
“83% of new vehicle buyers visit video focused Web sites prior to purchasing a car. This means 31% viewed videos on brand, product or company sites; 24% on auto-specific Web sites, 11% on YouTube; 7%, Yahoo Video; 7%, news sites; 6%, MSN Video; 4%, MySpace; 3%, Facebook; 3%, AOL Video; and 3%, other.”
These numbers from a recent Google sponsored study highlight a few really important factors that automakers need to keep in mind regarding online video and how viewers are searching and researching online. I’d be willing to bet that in a short amount of time YouTube, Yahoo Video, Facebook, etc. will garner a much larger piece of the viewership.
“Don’t skimp on production. A full one-third of auto shoppers watch the video content on the product site.”
So once you have the viewer engaged with a demo of the vehicle, why not lead them to other videos of the same vehicle they are looking at instead of (or maybe in addition to) pages of text information? Maybe it’s crash tests…shown from different angles? Maybe keeping something fragile like an egg inside safe during the crash? You can get really creative here but the object is to keep the viewer engaged and on your site.
Think about Blendtec and how they engaged their viewers by showing them real simple demonstrations of how their blender worked by blending ridiculously common things. Many of those interested viewers became brand loyalists for them.
“Investigate the broader video opportunity. Brand and auto-specific sites only make up slightly more than half of the automotive shopper’s online experience. Creating a presence on YouTube and other video destinations will help round out the plan.”
Why stop there? While video sharing sites like YouTube are a place that I think the automakers MUST have a presence, what about Facebook, LinkedIn or smaller automobile enthusiast user groups? The automakers could use these brand enthusiasts and interested buyers for research and development. They could find out what features and options people are REALLY looking for in a car. Let the group members participate in the design of new cars, show them videos of new concepts as they are created based on the group’s input and get feedback from the group. Imagine that kind of empowerment could turn them from potential buyers into the automakers brand evangelists.
David Meerman Scott wrote an outstanding post on marketing ideas for the automakers reinvention outlining 5 simple things GM could do to accelerate their hopeful rebound. I hope GM and Chrysler read his post because it had some great ideas. Automakers will be under a watchful eye with their marketing budget, so doesn’t using a tiny portion of their bloated television advertising budget to put a creative online video and social media plan together just make sense? Obviously I think so…what are your thoughts?
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2 commentsWelcome to the Jungle: Quick Notes from Jeff Pulver’s Social Media Jungle Boston 2009
There is nothing better to me than getting to meet many of the people I have conversations with online in person. Social Media Jungle event organized by Jeff Pulver was no exception. There were around 120 or so attendees and he was able to assemble some of the areas best social media thought leaders to lead some amazing discussions. Here are a few quick observations of mine from various speakers at the event:
Jeff Pulver – “ Sometimes You need to be Vulnerable”
The organizer of the event kicked it off and had some great thoughts about connecting with people as people…social media isn’t a numbers game although that is how some people would make it out to be. He also assesses his relationships online regularly and has recently removed around 3,000 “friends” from his Facebook profile. He regularly assesses those that he is connected to – do they engage in conversation? Have they brought something to the relationship in the past year? If the answer is no, then he removes them.This example was to stress his point that it’s all about building relationships and you have a “social” responsibility to define yourself as a person. People don’t interact with brands – they interact with the people behind those brands. Connect with people AS people. So being vulnerable is the secret to success in social media.
Another interesting prediction Jeff brought up – He believes in less than 18 months Twitter will be sold for between 2-4 billion to either Google or Microsoft. We shall see…
C.C. Chapman – “It isn’t a numbers game. The human side of social media”
In C.C. Chapman’s presentation he built upon Jeff’s presentation focus by suggesting that you should disregard quantity of followers, friends, etc. and just focus on building trust. “Don’t forget your human. Be yourself.”
Richard Dale – “Twitter as the universal information stream: What if the Twitter stream told us every time a can of soda is sold?”
Raised some interesting questions about Twitter becoming more than it is. Will it have accounts you have to pay to follow? Will there be automated feeds to tell soft drink distributors to restock a vending machine? Automated traffic updates?
Laura Fitton – “Social Media for Social Good”
Laura talked about getting social media involved with charities such as WellWishes because she was passionate about clean water. She also brought up Twestival which hosted over 200 simultaneous TweetUps to raise money for clean water projects. The main thing she stressed is that the influencer is the idea and not the person behind it.
Justin Levy – “How Small Business can use Inbound Marketing/Social Media to Help Increase Their Business”
Justin talked about how he is part owner of Caminito Argentinean Steakhouse a steak house in Northampton MA and how he has cut their traditional ad revenues by up to 90% and had 12 consecutive months of increasing revenue – all because of social media. He also shared an acronym he made up: HELP which stands for “Hustle, Engagement, Learning and Passion.” He also added “S” for “Strategy” which is how social media “HELPS” his business continue to grow.
Chris Penn – “It IS a numbers game – thinking about what numbers actually matter”
Chris is a stats geek which I love (being one myself). His whole topic was based around “what numbers matter?” and it comes down to basic grammar the verb. Verbs carry the action in a sentence. What measurables in your statistics have verbs? You just need to define what actions are in your statistics to find what your truly valuable statistics are.
Stephen Dill – “Social Media Lessons Learned: From the perspective of a skeptical Online Marketer”
Stephen started by talking about the misconception that people feel they don’t have the time for social media. He then quoted Laura Fitton of Pistachio Consulting (who spoke earlier) as part of his presentation that “Twitter is Google Juice”. He stressed the importance of “benchmarking” on Google to measure the effectiveness of using Twitter. Stephen was competing on Twitter with a famous Confederate General who also had the same name as he did (having a famous horse jockey who won the Kentucky Derby I could empathize with his struggle). He stressed that rather than fall into the misconception that social media was a time waster, you should realize that the real power and reason behind using social media is the technology of search.
Leslie Poston -”Bringing Generations Together For Success In The New Millennium”
Leslie had a great presentation about generational engagement in social media. Her greatest point was the need for real mentoring. For “Gen Yers” to help the “baby boomers” embrace the possibilities of social media and the tools that are available as well as the “baby boomers” to help the “Gen Yers” to understand concepts and strategies they may not have learned growing up completely in a digital world.
Matthew Mamet – “Using online video to strengthen your relationship with your online community.”
Matthew talked about how social media in general is a noisy place to have your discussion but that video helps to change that because people use video to change their mood. He also had stats (again I’m an admitted stats geek) that 86% of people use video to change their emotional state. It just goes to show how an effectively produced video can reach your audience by utilizing emotional triggers.
Thanks also go to Joe Cascio, Doug Levin, Jason Jacobs, Leah Busque, Steve Garfield, Alex Chriss (also the event’s host from Intuit), Maria Thurrell and Mike Langford for sparking some other great conversations not mentioned here and to Jeff Pulver for putting on a great event!
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