Recapture Missed Opportunities with Automated Remarketing
Companies spend billions in advertising to prompt consumers to buy their product. Some buy. Some don't. A third group kicks tires. Today's tire kicker is tomorrow's buyer.
When a consumer walks away from a phone call or web site without purchasing, you can assume the prospect is still hot. Research proves that remarketing to this group pays off and is exponentially more effective than marketing to a new set of cold leads.1
These prospects are interested — they have already raised their hands — and the effective marketer will find a way to close the deal. It's more important than ever to remarket to hot prospects who have contacted you but haven't purchased. The Internet has intensified competition by dramatically increasing consumer choice and access to comparative product and seller information.
As a result, consumer-facing companies have to work harder to influence empowered consumers to make a purchase — and must do so within a brief window of time, while the consumer is still actively making a purchase decision. This dynamic explains why many companies fail to meet their direct marketing goals, often generating a response of less than 1% and then converting less than 20% of those responses.
Despite the compelling arguments for remarketing, research shows that many companies simply drop the ball, often losing the prospect to the competition. Fewer than one in four companies are doing any remarketing whatsoever, according to a June 2008 study from 1to1 Media.2
This is surprising given the potential of remarketing to lift a company's customer acquisition rate. For example, one franchise company's corporate-sponsored remarketing program proved so successful that more than 375 franchisees are paying the franchisor to participate in it. 3
The case for remarketing in any business is plain to see:
- The odds are stacked in your favor. Compared to a random consumer, prospects who have already phoned your business or registered on your Web site are more likely to convert — especially with a nudge from you. 4
- The hard part is over. You have already invested in and generated a response. If that response does not result in a purchase, your investment has gone to waste. The incremental cost of following up and closing the deal is minimal compared to the potential return.
- Remarketing is now within reach. Until recently, remarketing has been hamstrung by the difficulty of capturing contact information when prospects don't buy. When a consumer contacts your business, you can now automatically capture contact information — even if the consumer hangs up after just a few words — and follow up automatically as well.
- Customization works. Personalizing communication improves conversion chances and remarketing occurs at the point in the sales cycle where personalization comes most naturally. That's because the consumer has already stepped forward, effectively identified himself or herself and told you which product they want. Not surprisingly, when following up, more than 50% of marketers use custom communications to close an in-progress deal.5 The right remarketing solution can provide insight into consumers who have contacted you so that you can customize follow-up communications.
- You have a sure thing. Rented lists contain consumers you think are your targets. Your nonconverters are consumers you know are your targets, and better still, are in the purchase decision process. And when they respond to your remarketing efforts, they are far more likely to purchase than a first-time responder.6
- Remarketing is persuasive. Consistent, customized and insightful follow up demonstrates you "get" your prospect and care about his or her needs.
To follow are the stories of three real companies that are dramatically improving business performance through systematic remarketing.
Consumer goods direct response marketer found that 50% of call center inquiries did not result in purchase, leaving a huge pool of untouched revenue potential.
SecondApproachSM automated re- marketing services from Neustar.
A 40% increase in the conversion rate for callers who didn't buy on the first call.
Consumer Goods Company
One of the world's largest and most successful consumer goods companies is driven almost entirely by marketing. The company recently found that half of the consumers who responded to its product ads by calling an 800-number or visiting a Web site actually purchased a product. Although many companies would kill for this 50% conversion rate on 200,000 calls per month, the company's marketers were determined to improve results with the 50% of callers who did not convert.
Prior follow-up efforts hadn't been accomplishing much. Outbound calls were costly. Quarterly mailings reached only a fraction of nonpurchasing callers because only 15% of them were providing a name or address. The mailings landed flat anyway because prospects had cooled off or had purchased competitive products by the time the quarterly mailing reached them. The company turned to Neustar for help in recouping lost leads and following up more quickly.
The company now automatically captures the phone number of every caller who doesn't order, regardless of whether or not the caller speaks with an agent.
Each night, the company sends electronically captured phone numbers to Neustar, which appends verified names and addresses. The very next day, Neustar prints and sends highly targeted, action-oriented postcards designed by the consumer goods company. Nonconverting callers receive the offer-driven postcards within 48 hours of their initial inquiry, prompting them to call the company and purchase.
The results have been remarkable. The company has increased its conversion rate for callers who didn't buy on the first call by nearly 40%. At an average lifetime value of over $700 per customer, this translates into major dollars. During the three-month pilot period alone, the company saw incremental revenue of almost $770,000. The company also used Neustar services to optimize results by testing different offers to similar prospect groups and adjusting the program accordingly.
A mortgage lender found that 80% of inbound inquiries did not result in a sale. Quarterly remarketing efforts reached nonconverting leads well after they had chosen another lender.
SecondApproachSM automated remarketing services from Neustar.
A 42.6% lift in the number of nonconverting callers who called back for a second time to inquire further about a loan, generating additional loan applications and a return on investment of 1746%.
With the recent mortgage crisis, a leading online mortgage lender had to reevaluate its customer acquisition activities. It could no longer afford to let leads slip away.
Approximately 20% of the lender's inbound calls resulted in an application for a loan. Attempting to capture the remaining 80%, the company launched a quarterly communications program targeting leads that provided contact information to an agent. Not surprisingly, by the time communications reached the leads, most of them had found other lenders. Response rates were negligible.
The lender knew it needed to increase its marketing velocity — the speed at which it reached back out to prospects who had expressed interest in a mortgage loan. The marketing team turned to Neustar and its automated remarketing services, which help companies reach back out to nonconverting inbound callers within one business day of the phone call.
Each day, the lender sends Neustar the phone numbers of nonconverting callers. Neustar appends a verified name and address to each phone number, and using the lender's pre-set artwork, automatically prints and sends postcards within 24 hours. To boost response rates and help provide a seamless customer experience, Neustar personalizes each postcard with the name of the agent who spoke with the caller, as well as the agent's dedicated phone number.
As an added bonus, the lender is also able to reach new leads. Since Neustar only needs a phone number to send a personalized postcard, the lender is also able to reach leads that didn't provide contact information to an agent.
The program has paid off. In a pilot period, 11% of callers who received an automated remarketing postcard responded by calling the lender for a second time — a 42.6% lift over the control group that did not receive any sort of remarketing communication. During the second call, 3.2% of remarketing postcard recipients converted — a 67.7% lift over the control group. The two-month pilot program alone generated almost $39,000 in incremental revenue at a cost of only $2,200. That's an ROI of 1,746%.
A national cable company found that more than 60% of noncustomer inbound callers did not convert to a sale.
SecondApproachSM automated remarketing services from Neustar.
Inbound lead capture increased by 69%, resulting in a 5% increase in sales among noncustomer calls.
A regional Vice President of a national cable company knew his company could increase revenues significantly by selling a bundle of services including cable TV, high-speed Internet and digital phone service. His system's call center was receiving 2,000 calls a day, 40% of which were from potential new subscribers. His frustration was that 60% of those new prospects didn't subscribe and many were abandoning the call.
Despite having a rich data repository, powerful analytics technology and real- time call-center applications, the company needed help. Neustar provided an automated service to identify incoming callers and qualify them so that, within the first two days, the cable company's call-center agents could reach back out to callers who didn't convert, even if a caller never provided a name and phone number to an agent.
Agents now know, before even picking up the phone, the caller's name, customer/ noncustomer status, subscribed services (if any), which services would be most appropriate and any Do Not Call flags. These records are integrated into the call center's lead-management program and agents call nonconverted prospects back within 48 hours of initial contact to deliver tailored offers.
In less than two months with this system, the Regional Vice President reported a 69% increase in the number of useable, identifiable leads for call-center agents. In addition, call wait times and agent interactions are shorter. Most importantly, the cable company saw an immediate 5% increase in new-customer sales directly from the automated remarketing program.
Limitations of Current Marketing Technologies / Processes
Although companies that remarket to their customers get results, many grapple with limitations such as data gaps, siloed information, organizational inertia and channel issues.
- Lack of data. Many organizations capture leads for remarketing only in the fraction of instances when agents ask for contact information, prospects agree to provide it and agents key it in correctly. This rarely occurs, as most agents don’t see data capture as a revenue-generating activity. In addition, most companies fail to treat the precious data in their interactive voice response (IVR) systems as lead sources because a) it never occurred to them or b) they lack the means to connect a phone number with a caller’s name and address. In every one of these cases, the result is lost leads and remarketing difficulty.
- Technical silos. Many organizations can give you a list of who has called them, a list of who their customers are and a list of who has made what orders. But very few can link a particular call to a conversion outcome because of the different business systems involved. Similar data integration problems can arise between corporate and regional offices.
- Inertia. Overcoming data challenges often prompts marketers to request a full-scale IT project, which if approved may take up to a year to move through the priority queue.
- Channel issues. Some consumers respond best to phone calls, others to direct mail and others to email. Ideally, organizations would optimize channels based on consumer preference but too often they lack enough consumer information to exercise their options. And in many cases where marketers have only a phone number, they’re handcuffed by the Do Not Call list.
Marketing Velocity: SecondApproach Remarketing Services from Neustar
SecondApproachSM services from Neustar, the only complete remarketing solution, gives consumer-facing companies all the tools they need to successfully remarket to their hot prospects.
At the end of each business day, marketers simply provide Neustar with the phone numbers for all nonconverting callers. Neustar then appends a verified name and address for each number and either 1) sends a personalized mail piece to each caller within 24 hours or 2) returns the names and addresses to marketers — with additional intelligence — to fuel other follow-up activities, such as calls and emails.
Marketers can customize SecondApproach services to tailor messages for each individual or to select only certain prospects for the most aggressive follow up. Marketers can send out multiple types of mailings or offers to gauge response, and then optimize their program accordingly.7 As part of the set-up process, marketers supply Neustar with the artwork to print the postcards to be distributed.
Companies can also determine the most effective channel for remarketing — telemarketing, email or postal mail — by automatically taking into account Do Not Call restrictions and instantly matching callers to per-channel conversion rates experienced with similar customers.
Each lead can optionally be given a score by leveraging the ElementOne® Analytics Platform from Neustar. Scores can instantly reveal the prospects with the highest potential value or the highest likelihood to convert. Scores can also indicate the most persuasive channel of communication, message, price point or offer. Marketers can then tailor offers or contact strategies to optimize results.
Marketers can also extend the reach of their remarketing communications by adding a daily feed of new mover data supplied by Neustar — further boosting their acquisition efforts. Within three months of relocating, these new movers will spend more on goods and services than non-movers do over a five-year period. New Movers on Demand from Neustar provides precise name, address and phone information on consumers that have moved in the last 72 hours. Typically, other sources provide new mover data that is between 30–90 days old. However, through our exclusive relationship with the US Telecommunications Network, we receive daily data feeds for lucrative new movers who have established a new phone connection.
The SecondApproach Difference
SecondApproach services overcome all of the obstacles that prevent marketers from succeeding in their remarketing, including timing, data quality and ease of implementation.
Most remarketing approaches reach back out to customers within two to four weeks after initial contact. In today's demanding customer environment, every hour counts. The more time you allow to elapse, the more likely your prospects are to lose interest or turn to the competition. Unlike standard remarketing approaches, SecondApproach services ensure that you can remarket to your nonconverting prospects within 24 hours — well before they have a chance to go cold. This gives you the advantage of marketing velocity while other efforts fizzle out.
Neustar expands lead quantity and channel options by supplying the industry's best consumer data with maximum coverage and accuracy of name, address and phone information.
SecondApproach services significantly boost your customer acquisition efforts. Organizations that use SecondApproach services see a significant return on their marketing investment by targeting the right audience with the right message at the right time.
Actual Results from SecondApproach Pilot Programs
|Insurance Company||Beauty Company||Health Company||Automotive Company||Fitness Company||Average|
(pilot vs. control)
On average, 2.5% of the control group — who received no remarketing communications — called back to purchase. In contrast, 3.9% of non-converting callers — who received an automated remarketing communication — called back to purchase. A 56% lift.
Actual Results from SecondApproach Pilot Programs
|Business as Usual||SecondApproach Remarketing Services|
|Direct Mail Response||0.5% - 1.5%||2% - 4%|
|Outbound Telemarketing Conversion Rate||1.5% - 2%||5% - 7.5%|
When compared to other marketing activities, automated remarketing delivers better results.
In today's turbulent economy, ROI is key. SecondApproach services allow you to automate your remarketing while eliminating IT-related expenditures and optimizing your channel marketing programs. The result is a return on marketing investment of up to 1200%.
Unmatched Data Quality & Speed
To provide this coverage, Neustar uses patented processes to link together the most complete and accurate name, address and phone data possible. Those linked elements can also connect to information such as demographics, location, predictive buying behavior and risk-assessment factors. A real-time query-and-response network delivers this exceptional data to Neustar clients in sub-second speed, whenever our customers need it.
SecondApproach is an end-to-end service integrating data, lead processing and direct mail fulfillment. Because the service requires no technical implementation and is fully turn-key, you can be up and running in less than a week without the wasted time, risk and resource drain of a protracted IT project.
1. DMA 2007 Response Rate, average direct mail response of 2.15%. Neustar Customer Survey, average remarketing direct mail response rate of 6.1%.
2. 1 to 1 Media Webinar,"Ready, Aim, Acquire"!
3. 1 to 1 Media Webinar,"Ready, Aim, Acquire"!
4. Marketing Sherpa, average conversion rate of 1% for multi-touch direct mail efforts. Neustar Customer Survey, average conversion rate of 3.6% for remarketing direct mail.
5. "Getting Personal Across Touchpoints: What's Now and What's Next in 1 to 1 Communications." research brief, 1 to 1 Media, 2006.
6. Marketing Sherpa, average conversion rate of 1% for multi-touch direct mail efforts. Neustar Customer Survey, average conversion rate of 3.6% for remarketing direct mail.
7. On-demand variable printing technology has changed the nature of direct mail by making it economically possible to send customized direct mail in smaller batches.