Campaign Overhaul Lowers Cost Per Sale in the First Month

Challenge:

Due to COVID-19 in 2020, a national Senior Medical Goods Provider experienced high growth with acquisitions and enjoyed a low cost per acquisition (CPA) at $494 with direct mail. However, coming out of COVID-19, their costs per acquisition began to rise year over year. These costs rose to $645 in 2021, $746 in 2022, and $903 in 2023. These results led them to gradually cut their direct mail budget.

Darwill was tasked with crafting a strategy to enhance their direct mail campaigns with the goal of raising response, increasing sales, and lowering their cost per sale.

Solution:

In Q3 of 2023, Darwill stepped in with a complete overhaul of the client's entire direct mail marketing approach. Darwill identified areas of improvement on the client's current controls that had grown tired and suggested a major overhaul to the design, creative, and format was needed. The long-form mail format they were using needed to be simplified with product features spotlighted while presenting better brand consistency.

Strategy:

With experience working with hundreds of clients marketing to the senior demographic, Darwill knew just how to resolve the clients’ issues. A campaign overhaul was implemented to help their prospects better understand the message of the mail piece and take the next step to convert.

Using direct mail best practices, Darwill redesigned the client’s mail by introducing a new format with engaging copy, imagery, and a call-to-action (CTA) to drive response. We also advised the client to use a CTA that directed to a landing page, something they had not utilized before. By strategically incorporating a CTA pointing to a dedicated landing page, we gained valuable insights into the attribution and overall efficacy of our marketing efforts. This approach not only provides us with a clear pathway to track and analyze mail recipient actions but also allows us to measure the campaign's success in terms of conversions and click-through rates. CTA incorporation raised response as prospects were able to easily navigate to the website for more information or to collect the promotional offer advertised on the mail piece. The direct mail campaign was sent to new prospects every month based on a modeled approach. 

Results:

The creative overhaul achieved winning results in the first month of implementation.

In this short amount of time, Darwill was able to decrease the client's cost per sale by 34.5% and increase their response rate by 82%. As a result of Darwill’s success, the client is now performing A/B tests and experimenting with a nurture campaign that is already seeing early success.

Below, you can see the average results from the last two years the client had with their previous marketing agency compared to the results they have accomplished within one month with Darwill.