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 Case Study 4: Generating offline sales through interactive marketing
 Client: Large cosmetics manufacturer
 Category: Electronic customer relationship management (eCRM)
 Services: Online Advertising
Online Contest
Viral Marketing
Performance Analytics - Learn and React™



Challenge:

A large cosmetics manufacturer wanted to test Internet marketing as a tool to target teenage girls to make purchases offline in one specific city. The Internet marketing component of the campaign also had to be integrated with a small offline initiative in order to achieve the objective.

As with many firms that do not own their channels of distribution, this firm wanted to find out if a direct relationship with the customer online as well as encouragement from the manufacturer would drive customers to make purchases.

Solution:

To address this challenge we developed a strategy that integrated various Interactive marketing services. Online advertising, an online contest and viral marketing initiatives were all integrated into the campaign.

To reach the target market, BAM Strategy designed an online contest with a prize that had a high value to teenage girls. The contest was comprised of a fun interactive survey that provided the contestant with their product usage ‘profile’. The profiles were fun and encouraged the contestants to share them and compare them with friends.

The viral marketing component of the contest was an incentive to participants to pass the contest along to their friends. Each additional referral meant an additional chance for them and their friends to win. Teenagers are known to be a great audience for viral contests as they have huge social circles.

A small geo targeted media buy in the selected city as well as an email marketing campaign were undertaken to launch the contest. To maximize the campaign effectiveness, the performance was optimized utilizing our proprietary Learn and React™ performance analytics platform. (See Case 1 for an additional “Campaign Optimization” example)

The contest results allowed us to identify those respondents who are most likely to be the "influencers" in their social circles. These people were then sent a free sample of the product along with 10 “free sample” cards with a promotional website address that they could pass along to their friends.

Results:

The contest resulted in thousands of registrations, thousands of referrals amongst the target market and a significant increase in the product’s sales in the selected city. From this initiative, the client concluded that well executed interactive marketing can be effective at driving immediate offline sales. The massive ‘word of mouth’ component of the campaign was also a success and proved that online is the ideal medium to build a ‘community’ of satisfied customers.

Some additional findings and key learnings from the campaign:

  • Referrals generated 54% of total participants to the contest.
  • Mention of the incentive (Prize) resulted in a better conversion rate (9.69%
    vs. 3.66%)
  • Mention of the brand running the contest increased registration by 25%.
  • Effective campaign optimization and viral marketing techniques reduced the cost of acquisition per contestant by 78% from the start of the contest to its conclusion 8 weeks later.

To find out more please contact us.

 

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