Who keeps sending out those darn great Gtech mailers?
If you were living in Britain in 2014 there’s a high chance you saw the Gtech AirRAM vacuum cleaner, or even own one. A consumer campaign that achieved a sterling result, it is one of the best integrated campaigns this country has seen in decades. The proposition was simple: a cordless hoover that rivalled both price and technology of the leading manufacturers, home delivered it was both back and time-saving. But how did Gtech do it?
With an overall budget of £3 million with two-thirds devoted to television advertising, direct mail, online and PR picked up the remainder. Over the promotional period it made 39,000 sales, which comprised £14.4 million in revenue and a net profit of £2.9 million. This is an impressive result for a little-known brand with a new entry in the market. And the detail is even more telling.
While the star of the campaign and possibly the best way to demonstrate the vacuum’s effectiveness, it only had an ROI of 3:1 (£6.5 million sales). The support acts: direct mail, PR and online actually converted better and closed the deal. With a fold-out mailer sent to 700,000 homes direct mail made half the sales of television with an eighth of the budget. ROI? 5:1.
So you can imagine with an increased direct mail budget how much better the sales would have performed on a hugely successful campaign. It’s important to note that there’s a 20% uplift in conversion when campaigns are integrated, so suck up some knowledge from Gtech’s success and build a campaign to draw your customers in.
Using direct mail as a key part of their integrated direct marketing, they are receiving hundred’s of orders a day. Their products range from £150 through to £1,000 in value.
Their cost of direct mail is less than 30% of revenue. For them, it’s an extra revenue stream that is creating more and more profits and product movement, than just press, digital and DRTV alone.
Direct mail has allowed them to build a stronger, bigger and better database, with every mailing, and they began with only a data set of 20,000 prospects. Find out more about our Data Management services.
In just over 3 years this has grown to over 10million mailing items a year with significant growth planned.
Needless to say, we all worked hard to achieve this success, success based on a brilliant product range, a great price and most importantly integrated campaigning, timed to perfection, to deliver the best results.