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Home Improvement
Data-Driven Creative Testing Pays Off with Long-Term Results
Opportunity
A national lawn care company, with a mail volume of over 70MM pieces per year, wanted to increase performance from its direct mail program. The marketplace was retracting and year over year increases in direct mail cost were driving up the cost per new customer acquired.
THE GOAL:
Reduce or maintain the cost to acquire and improve the response, conversion, and sales rates on acquisition direct mail without increasing spend.
Solution
IWCO developed new prospect models that selected more responsive and converting prospects at higher LTV. IWCO also implemented an ongoing creative test and learn approach to create an optimized control rotation.
IWCO Provided:
- A “test and learn” approach including 20+ tests per year
- Format testing: postcard tests, letter packages and more
- Custom segmentation and personalized messaging
- New multi-attribute targeting models
Results
- IWCO’s multi-source prospect model outperformed the legacy model by well over 50% in the first year of engagement
- Creative testing with multiple winning controls gave the client a robust control library to rotate packages month over month, mitigating response degradation
- Ongoing model refinements improved conversions to target those most likely to respond and convert, and increased sales rate by over 40%
- Mail volumes were reduced substantially, while results were improved.
IMPACT
The client saw a dramatic rise in response rate, a significant lift in sales rate, and overall improved mail performance on a lower annual volume of mail.
79.6% higher sales rate
on prospect model vs. client model
+37.2% response rate
on ribbon package vs. control
$487,452 postal savings
+40% YOY response rate
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