Sector: Telecommunications
Audience: Selected Noel Leeming customers who had purchased a Vodafone mobile in the last 10 months
Campaign: Direct mail – Personalised mail pack
Purpose: Get people to upgrade their Handsets
Details: Targeted mailing to Noel Leeming customers who had made a Vodafone handset purchase over 10 months ago.
Results: 7.4% response, 611% ROI.
In 2004, Vodafone had just introduced an exciting new range of services – Vodafone Live! with PXT (picture messaging). The company had invested heavily in television and print advertising to promote the new technology. However, users would have to spend anything up to $750 to upgrade their phones to take advantage of the new technology. An opportunity existed for Noel Leeming to make it easy for existing Vodafone customers to upgrade – and to get them thinking “now’s the time to do it.”
The Challenge
- Vodafone Live! marked an exciting step forward in mobile technology. But a mobile that’s compatible with the new technology costs up to $750. On top of this, many of Noel Leeming’s customers had purchased a new Vodafone phone within the last year.
- To be enthused to buy another new mobile – now, customers would need to be encouraged with significant savings. The benefits of the new technology would also need to be presented in a compelling way.
The Thinking
- To accurately target people who were ‘in the market’ for a new mobile.
- The decision was made to send a direct mail pack to people who had purchased a Vodafone mobile at Noel Leeming at least 10 months previously.
- The pack presented a mobile phone trade-in offer of $150 off one of the new mobiles at Noel Leeming as well as a range of additional special Nokia offers.
- The pack needed to be very clear about the offer and the benefits of the technology. Importantly, it also had creative appeal – adding to the impact and supporting the Noel Leeming and Vodafone brands.
- The aim was to generate a one-month spike in sales, through a 2.5% response to the pack. The targeted ROI was 229%.
The Results
Clearly, direct mail was the right decision. It allowed Noel Leeming and Vodafone to target the right people in a way that proved highly motivating – and leveraged off Noel Leeming’s and Vodafone’s TV advertising.
- Response to the trade-in offer was 7.4%, against a budgeted 2.5%.
- The average spend was more than 200% over the trade-in offer.
- ROI was 611%, against a budget of 229%.
“Vodafone had just launched some brilliant new technology. But when our customers can still remember how much their current mobile cost, it’s going to take something extra to get them to go out and buy an expensive new one. Direct mail allowed us to focus on the best prospects, in a way that would get the best results.”
Tracy Wilson, Strategy and Insight Manager, Noel Leeming Group.
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