Agency: Bounce – Greenville, SC
For several years this telecommunications company relied on mass media advertising – radio, outdoor, TV and newspaper inserts to grow its subscriber base. However, there came a point when the wireless operator began to experience an increase in churn rate (disconnects) that was above industry averages.
The client request was to:
- Drive business to their 35 retail centers within its marketing footprint.
- Raise the percentage of high credit customers back to the normal levels of 70 to 73%.
- Use key customer findings to leverage enhanced mass media programs such as newspaper FSIs to include zip code areas that best matched specific target profiles.
DXM proposed developing customer demographic and lifestyle profiles of existing customers within the client’s customer profile – and adding a tier of slightly lower credit but timely paying customers who also had a lower churn rate. By mirroring the household characteristics of these two profitable customer groups, a custom one-to-one direct mail program could be created to communicate the new product and service line offerings to prospective customers.
- Lower Cost Per Activation fell to $39 versus a previous benchmark of $53.
- Customer Increase to 70%. An increase of 7 points in just three months. The client had lost 10 percentage points over the course of a year leading up to this campaign.
- 23% Increase in Cell Phone Activation and sales in the FSI ZIP code zones versus the non-FSI ZIP code zones.