Challenge
As consumers become more technologically savvy, many new avenues of contact become available. One of the possibilities is using e-mails in conjunction with traditional mailers. E-mail coupons are common for tangible consumer products, but how effective are they when accompanied with a traditional direct mail piece?
Approach
One of our medium-sized dealers sent out about 4,500 mailers each month. To reach his tech-savvy customers, he decided to accompany his mailer with an e-mail campaign. We had e-mail addresses for about 15% of his database, so we sent an e-mail to those customers about three weeks after his mailers were sent. The e-mail was an electronic version of his direct mail piece, featuring the same design and offers.
Results
In March and April of 2009, e-mails were sent out to approximately 15% of the total mailing list. There was an increase in the repair order dollars’ average of 29% for the two months the e-mail promotion was used. After factoring in the nominal cost of the e-mail, it was revealed that the average return on investment increased $2.80 for the promotions that had e-mails. If the customer acted on the e-mail coupon or just the reminder the e-mail provided, the customer did visit the dealership, which boosted the ROI. The case study determined that the use of e-mail with direct mail is a more profitable tactic than just using mailers alone.
| Mailers Sent | # of E-mails Sent | E-mail % to Total Sent | Total Dollars from ROs | ROI | |
| February | 4522 | 0 | 0% | $36,387 | $14.63 |
| March | 4290 | 606 | 14.1% | $49,584 | $21.01 |
| April | 4658 | 738 | 15.8% | $44,556 | $17.39 |
| ROI | |
| Mailer Only | $14.63 |
| Mailer/E-mail Average | $17.43 |
