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Objective:
To
maximize the cost-effectiveness of a direct mail used to promote
one of the largest PPV Boxing Events of the year. Though event was
budgeted and plenty of tactics were in place, $2,500 in new funds
became available. The goal was to best utilize those funds to maximize
the number of event purchases.
Plan:
Instead
of sending a mailer to previous purchasers who were probably already
aware of such a major event, the plan was to target potential PPV
Event buyers who fit the profile of a PPV purchaser but who had
not bought an event in the past 12 months. In order to execute this,
first a profile had to be completed on the past PPV boxing event
purchasers. Then it was determined which MV-50 cluster codes it
would be appropriate to target. For the mailer, first thing was
to sign up for promotional direct mailer postcards that were provided
at minimal cost. Then, the customization, printing and postage expenses
needed to be calculated. The 10,591 mailers were then planned to
arrive the Monday before the Saturday event. Lastly, the results
were to be tracked.
Event
Schedule:
·
Two
month advanced planning required to customize and proof mailers,
request labels and postage for mail house and postal processing;
and preparing customer service, field and operations groups.
Costs
for AT&T Broadband (formerly TCI):
·
$300
for customization and processing.
·
$320
for 10,600 mailers.
·
$1,880
for postage and handling.
Results:
·
Of
the 10,591 households with addressable set-top boxes that were selected,
8.2% (873) purchased the event.
·
The
price of the Tyson-Holyfield event was $54.95. With 873 added buys,
an additional $47,971 was captured.
·
The
high response rate is notable in part because these respondents
had not purchased any PPV product in the past 12 months.
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