Impact Survey Dsl Provider

DSL Provider Direct Mail Pilot Results

Sanitized versionJune, 2006

2

This document presents the results and conclusions of the market research organized by an DSL Provider and The Post in order to compare impact of several media on brand image, product perception and sales activation.

This market research was conducted in March and April 2006 among 3500 customers, referring to a campaign on DSL. 4 media have been tested: Direct Mail, Customer Magazine, Invoice and Door to Door.

CAVEAT

3

AGENDA

Pilot set up and objectives

Results from market research

Cost and Efficiency of media

Conclusions

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MARKET RESEARCH SETUP

Compare impact of several media on brand perception, media perception and sales activation

Existing customers of an other service

Invoice + banner Invoice + letter Customer Magazine Customer Magazine + letter Direct Mail Door to Door

3500 phone interviews (500 for each group) Real results from Call Center and subscriptions

Campaign objective

Target customers

Accompanying media

Market research

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Direct Mail is well suited to create awareness on a new service

Direct Mail has the best recall rate

Direct Mail generates the highest number of inbound calls and subscriptions

Door to door has the highest ROI

Letter added ton invoice is efficient in terms of recall and subscriptions, at a very low price

Letter added to Customer magazine has no influence on article reading and subscriptions

KEY MESSAGES

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AGENDA




Conclusions

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DIRECT MAIL HAS A STRONG IMPACT ON SPONTANEOUS AWARENESS

‘Which DSL Provider do you know? (spontaneous)

Percentage of respondents

N=3500

100

120

120

140

220

X 2,2

Direct Mail

Door to Door

Control Group

Invoice total

Customer Magazine total

Direct Mail increases spontaneous awareness by 220%

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THE MAIN RESTRAINT TO SUBSCRIPTION IS THE LACK OF INFORMATION

59%

19%

3% 2% 2% 2%

10% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

did not knowthis DSL service

do not knowenough aboutDSL service

too expensive no interest no trust quality other dk

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DIRECT MAIL SIGNIFICANTLY REDUCES THIS RESTRAINT

59%

67%63%

48%

58%55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

all no media exposure invoice TOTAL DM TOTAL MAGAZINE D2D

•% Did not know this DSL offer

10

Percentage of respondents*

Direct Mail

Invoice + Letter

Door to Door

Invoice + Banner

Cust. Magazine + Letter

Cust. Magazine 5

5

5

6

18

21

X 4

DIRECT MAIL DEMONSTRATES A HIGH RECALL RATE, TOGETHER WITH THE LETTER ADDED TO INVOICE

Letter added to Magazine does not increase recall & recall content rate

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… AND THE BEST ‘RECALL CONTENT’

Percentage of respondents

ReceivedRecall DSL message

Media funnel

“Do you remember a … from DSL Provider ?”

“What did you do with the … from DSL Provider?”

Read Recall content

“Can you describe the … from DSL Provider ?”

DM 72100 21 12761521

INVOICE + BANNER 36100 5 15625

INVOICE + LETTER 48100 18 666918

MAGAZINE 79100 5* 25445

DOOR TO DOOR 67100 8 47968

N= 500

N= 500

N= 500

N= 500

N= 500

N=500

MAGAZINE - LETTER 79100 5* 25445

DM performs better than any other media at each step of the media funnel

DM performs 2x better than Invoice + Letter for content recall

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…. LEADING MOST INBOUND CALLS

ReceivedInbounds calls

Media funnel*

Proposal Sent

* INDEXEDSource: DSL Provider & Post Teams analysis

DM triggers 1% inbound calls, higher than other media

DIRECT MAIL 181 000 10,7 1,921,07

INVOICE + LETTER 235,5 1,260,551 000

INVOICE + BANNER 00,1 00,011 000

TOTAL MAGAZINE 230,07 0,0160,071 000

DOOR TO DOOR 131,2 0,160,121 000

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AGENDA




Conclusions

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NEW SUBSCRIBERS FIGURES

Group

Direct Mail 100

Door to Door total** 100

Customer Magazine 100

Customer Magazine+ Letter 100

Invoice 100

Invoice + Letter 100

Control 100

Total*Online

0,01

0,01

0

0

0,01

0,01

0

TeleSales

0,08

0,04

0

0,03

0,02

0,04

0,04

DSL Provider Centers

0,11

0,09

0,04

0,03

0,02

0,03

0,02

0,19%

0,14%

0,04%

0,05%

0,05%

0,09%

0,06%

63%

55%

Direct Mail has the best conversion rate : 0,19%, followed by Door to Door (0,14%) and Invoice + Letter (0,09%)

Door to Door creates traffic in shops better than any other media : 63% of subscriptions received via this channel

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COMPARISON OF UNITARY COSTS OF MEDIA

Source: DSL Provider & Post Teams analysis* Ewtrapolation : 75.000 DM / 2.000.000 Door to Door

COST / RECEIVER (€)

Direct Mail

Door to Door


Invoice + Letter

Direct Mail is the most expensive media in this pilot

0,64

0,13

0,20

0,23

0,31

0,94

Extrapolation Basis

Aided

*

*

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COMPARISON OF MEDIA EFFICIENCY IN SALES ACTIVATION

Source: DSL Provider & Post Teams analysis

EFFICIENCY (% conversion subscribers

/ receivers)

Direct Mail

Door to Door


Invoice + Letter

DM is the most efficient media for subscribers conversion

Door to Door is very efficient as well, distributed in a “targeted” area

0,05%

0,09%

0,14%

0,19%

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ROI / MEDIA

Source: DSL Provider & Post Teams analysis

19

40

198

326

RETURN ON INVESTMENT (%)

Direct Mail

Door to Door


Invoice + Letter

Every investments in tested paper media prove to be profitable

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AGENDA




Conclusions

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The key conclusion of this pilot, in which the DSL Provider and the Post have tested several direct media, is probably that the paper still has a strong power on sales activation, since all these media had a positive Return On Investment

Direct Mail has a very good impact on product awareness, recall rate and number of subscriptions.

Door to door is the second activation tool. And thanks to its low cost, this media has the highest ROI.

Letter added to invoice had a good impact on recall rate and subscriptions in this DSL campaign, at a very low cost.

Letter added to Customer Magazine had a limited impact on article reading, but could be tested differently, for example with personalized covers or contents

CONCLUSIONS

Impact Survey Dsl Provider

Documents

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