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optimize. maximize. |
Case 1: Online Customer Acquisition Optimization
Overview: A Fortune 100 company with a robust customer acquisition program, wanted to expand
to the internet. They allocated $27 million to develop programs to drive site traffic and build website
capabilities. They already had a paid search program and an affiliate program, but were not sure
how to manage these programs and develop new ones.
Key Actions: The lifetime value of customers acquired through the existing programs was analyzed
and it was determined that acquisitions from the affiliate program were not profitable while those
from paid search were very profitable. Based on these learnings forecasts were developed for
other potential internet programs. The following actions were taken:
Results: Sustained growth rates of over 35% were achieved over a 5 year period of time
Overview: A Fortune 100 company with a robust customer acquisition program, wanted to expand
to the internet. They allocated $27 million to develop programs to drive site traffic and build website
capabilities. They already had a paid search program and an affiliate program, but were not sure
how to manage these programs and develop new ones.
Key Actions: The lifetime value of customers acquired through the existing programs was analyzed
and it was determined that acquisitions from the affiliate program were not profitable while those
from paid search were very profitable. Based on these learnings forecasts were developed for
other potential internet programs. The following actions were taken:
- A model was developed to increase the profitability of the affiliate program
- The paid search program was expanded to maximize ROI
- SEO and display media programs were developed
- Online partnerships were formed with companies where there were synergies and
functionality to integrate the acquisition experience on partner sites was developed
Results: Sustained growth rates of over 35% were achieved over a 5 year period of time
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How Do We Make an Impact?
Case 2: Multi-Channel Customer Acquisition
Overview: A large multi-national company was spending $500 million a year to acquire new
customers through direct response TV, internet, direct mail and telemarketing. The DRTV channel
was of concern as the cost per acquisition was significantly higher than other channels and the
lifetime value of customers was lower. Costs to produce a new TV spot were over $1 million.
Key Actions:
Results:
Overview: A large multi-national company was spending $500 million a year to acquire new
customers through direct response TV, internet, direct mail and telemarketing. The DRTV channel
was of concern as the cost per acquisition was significantly higher than other channels and the
lifetime value of customers was lower. Costs to produce a new TV spot were over $1 million.
Key Actions:
- Completed analyses to prove that DRTV media spending positively impacted the internet
results due to a spillover effect. The benefit was correctly attributed to accurately assess the
value of the DRTV channel and marketing budget was reallocated. - DRTV media and production costs were evaluated and it was determined that there was a
reengineering opportunity. An RFP was conducted and a new agency was engaged.
Results:
- Increased assessed value of the DRTV by almost 50%
- Cut DRTV production costs in half
Case 3: Social Media Marketing
Overview: A nationally recognized direct marketing company with a strong offline presence and
growing online business needed to accelerate growth in traffic to their site with a very limited
marketing budget. The cost of paid search and display media could not be justified.
Key Actions: We analyzed the client’s customers to determine how to best attain viral traction. We
learned that the customers wanted a destination site, a place where they could get up-to-date
information. They also had an affinity to contests and sweepstakes. The client also had compelling
video content that we knew would be valuable. The following actions were implemented:
Results:
Overview: A nationally recognized direct marketing company with a strong offline presence and
growing online business needed to accelerate growth in traffic to their site with a very limited
marketing budget. The cost of paid search and display media could not be justified.
Key Actions: We analyzed the client’s customers to determine how to best attain viral traction. We
learned that the customers wanted a destination site, a place where they could get up-to-date
information. They also had an affinity to contests and sweepstakes. The client also had compelling
video content that we knew would be valuable. The following actions were implemented:
- Created a facebook page that features links to the various client websites
- Created a twitter account to provide updates
- Developed a contest for customers who are facebook fans or twitter followers
- Edited video content for use on YouTube
Results:
- In the first month acquired almost 1,000 facebook fans and twitter followers
- Generated over 42,000 video viewings and 73 viewer comments on YouTube
- Significantly increased site traffic
The growing importance of data-based
marketing, read this article
marketing, read this article
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Copyright © 2009 Global Swell Interactive LLC.