Case Study No. 5: Tapping a new business source more efficiently and economically

Problem:  A large national manufacturer of animal health products was unable to meet sales goals for two new products.  In order to do so, the company needed to derive business from small and medium-size companies who were not current customers.

Challenge:  Generate new business from small and medium-size accounts, many of whom the client’s sales people could not afford to call on regularly.

Strategic Solution:  Develop a two-part direct mail series that targets key prospects with an order offer that will establish a foothold for repeat business.

Results:  The first mailing produced 3.4% response and the second a 2.1% response.  The final tally showed 566 new customers for one product, 149 new customers for the other, and 105 new customers for both products — 820 new customers in all!  Moreover, the average initial  monetary order amount was three times larger than the client’s goal.  Money expended for this direct marketing program was expected to generate a return on investment of over 140%.



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