Effective Marketing on a Limited Budget

Challenge:

A National Hearing Provider needed to efficiently prospect for new patients and hearing aid users on a fixed budget. Knowing this, Darwill leveraged data and predictive models to develop a marketing plan that focused on mail cadence, creative, and budget reallocation to target the clients most valuable prospects.

Solutions:

Tasked with this challenge, Darwill analyzed the clients’ patients and created a custom, validated model built specifically to optimize prospect selection for their business. This model provided an in-depth look into the clients’ prospect pool. From this data, Darwill could analyze which prospects had the highest propensity to convert, helping us to appropriately reallocate the budget. Instead of mailing every prospect on the list, we decided to hone in on the top tier groups as the data showed they would provide the best response rate and ROI.

•  Used the data model and performed a reverse matchback analysis by score range to understand which prospects would result in the best ROI.
•  Client previously mailed to prospects that scored 40 and above. Based on the history of our proven models, Darwill suggested to narrow the focus to the 60+ score range, as those in the 40-50 group were less likely to convert.
•  Targeting top performing score ranges (60-100) would yield better results compared to the 40+ group, as prospects in  the 60+ score group have a higher purchase rate. 

Strategy:

Once Darwill found the best prospects to target, a marketing plan was developed to mail the 60 and above score group and compare results to the previous method of targeting those that scored 40 and above.

•  The 60+ group was mailed once every 6 to 8 weeks with a branded piece of mail.
•  With the remaining budget we focused on mailing the 90+ (90-100) score group twice as frequently as the 60-90 group, as these are the top prospects to target. Those in the 90+ score range received both a branded mail piece and a non-branded mail piece – every 6 to 8 weeks. 

Results:

Through Darwill’s methodology, the client is seeing an overall increase in response by focusing on the 60+ group compared to their wider target of 40+. Additionally, they are seeing an average of almost double the response rate for the 90+ score group. The success has enabled the client to more easily reach their marketing goals, allowing the business to increase growth. Furthermore, the client continues to mail exclusively with Darwill due to the excellent results.

•  With a narrowed focus on the 60+ group, the client saw an ROI increase of 300%.
•  By wisely reallocating the remaining budget to double the mail frequency of the 90+ group, Darwill achieved a 700% increase in ROI for the top 90-100 scored prospects who had the highest propensity to convert.