Txt4Info/Orcon

Background

New Zealand's fourth-largest ISP Orcon was looking for something different. In a retail broadband market saturated with rowdy vendors and similar offerings, Orcon wanted to energise its campaign to switch dialup internet users to broadband.

The key customer insight was the absence of enough good reasons to justify the leap to broadband. Most dialup customers had an inkling that broadband was better, but few had a clear picture of benefits that would drive an instant decision. Orcon knew that education and a softer information-based approach, rather than yelling, was required to coax these consumers over the line.

Orcon chose to embed Txt4Info into its above-the-line advertising campaign, introducing in-built direct response mechanisms supporting buying cycle stages of awareness, consideration and purchase in a single cohesive programme. Combining multiple channels, including TV, txt, email and web, Txt4Info lets consumers get more out advertising by using a quick-fire mechanism to request more information. It also increases the value of advertising because it introduces a measure of effectiveness and the logistics machinery to grow a permission database and manage painless fulfilment.

Objectives

The big goal was to capture 8000 new broadband customers over a three-month campaign, from October-December 2005. However, the clincher was achieving the acquisition target without necessarily increasing backend call centre resources to process new transactions, and render clues to help focus future marketing spend.

Target Audience

Dialup internet users

Channels

• TVC
• Print - magazines and dailies
• Txt messaging
• Email
• Web

Approach

If the approach were to take an indirect route to consumer wallets, first through awareness, finding out more and then buying, the experience had to be priceless.

Consumers who saw Orcon advertising simply fired off a short txt code for more information about the broadband offer. A return txt message invited the sender to txt back their email address, in which case Orcon emailed the respondent information about the offer and a web-link inviting them complete signup.

While its easy to frighten off potential purchasers with demands to 'buy now', offering multiple digital channels lets people engage on their own terms and gradually establish a sense of trust, not unlike mainstream brand marketing. Txt4Info satisfied the large group of people who were interested in the offer, but not quite ready because they don't know enough. It also played nicely into the hands of Orcon's call centre, as many of the obvious questions had been answered and callers we ready to sign up, without the usual expensive over-the-phone education process.

Once the sole domain of 0800 and 0900 numbers, direct response advertising using digital channels offers tremendous advantages for consumers, who these days demand immediacy and no exceptional behaviour, like coupon cutting. For advertisers it solves the difficulties of fulfilment and increases the value of advertising by introducing a measure of effectiveness and the machinery to grow a permission database.

Results And Outcomes

• The campaign achieved customer acquisition objectives within the timeframe
• 47% of people who responded provided their email address for more information
• 5% of people forwarded emails to others, extending the reach and of the campaign even further
• Response rates highlighted spectacular differences between best and worst performing advertising spots, ranging from $12 to $1,000
• Analysis also identified a lower cost per lead for off-peak advertising spots compared to on-peak advertising
• Notable differences were also recorded between 15 and 30 second flights, with the cost per response of a 15 second spot two thirds of 30 second spots
• Similarly, time of day had a bearing on cost per response, with prime times particularly expensive
• Generally, after eight weeks cost per response increased
• Anecdotal feedback from call centre staff indicated that callers were more informed and committed to signing up

Key Takeouts

• The strategy of using txt response to underpin and convert above-the-line advertising is viable
• The txt channel lowers the barrier to response for consumers, and integrating email and web provides the opportunity to integrate the research phase of the consumer buying cycle into a simple response process
• Educating consumers via email/web reduces the end cost-of-sale for the contact centre
• Technology is now able to help close the gaps between above-the-line media and an online supported sales process
• The ability to easily measure response against specific media spends enables advertisers to highlight the differences in cost-per-response for advertising slots that were once considered similar. The upshot is that advertisers are now able to use this insight to lower the cost of media spend; or maximise the response for the same spend; or even craft a campaign targeting the most responsive consumers

How Touchpoint Technology Helped

• Automated the response and information delivery process using txt and email
• Provided an alternative, more immediate response channel for consumers
• Provided insights into the performance of specific media buys