How a single E-shot created a 4,650% ROI
Here is the last of the three ‘mini case studies’ I promised you that reveal what happens ‘behind the scenes’ – and the results some ambitious companies are achieving – when they work with Richard Lomax.
This example is about Mike Winterbotham of Clearcraft Oil Candles who successfully used a single E-shot to create a potential 4,650% return on investment over a 5 year period.
Mike’s business specializes in supplying oil candles to establishments that traditionally use wax candles to create a special ambience, such as restaurants, hotels and spas.
Mike has traditionally used direct mail to promote his business with great success, but in recent years the response has fallen so he decided to try sending messages using Email.
Mike has known Richard Lomax for many years and has worked with him on several occasions, so he asked for advice and guidance on converting his direct mail campaign into an effective Email campaign.
The key to the main strategy used within Clearcraft Oil Candles campaigns is that they not only sell oil candle containers but also the oil. A new customer to Mike usually becomes a repeat oil purchaser. It therefore makes economic sense for Mike to give a free oil candle away as an introductory trial to potential new customers.
Mike understands the concept of ‘life-time value’ and applies it cleverly to his marketing.
Mike sent out 1,800 emails to restaurants, from a cold database.
Here’s the top section of the Email (click on it to enlarge):
The Results ?
- There was a 20% open rate, which is very good for a cold list
- 5% click through to the offer landing page
- 16 free oil candles were ordered from the one E-shot
- This resulted in 6 of the companies purchasing more oil candle containers, but more importantly they have potentially become long term repeat purchase customers for the oil.
Because Mike has accurately recorded the results of past campaigns, he knows on average what new customers who receive a free candle spend, and go on to purchase. This information enabled him to work out that this single e-shot would produce a 4,650% return on investment over the next 5 years, or a ROI for year one of 1,650%.
This took into account the cost of purchasing the data, sending the email, and the free oil containers and postage. Not bad!
This campaign won one of the monthly Marketing Mastermind Club Best Practice Awards. When the campaign was dissected to reveal to members the reasons why this e-shot was so successful, it revealed 12 different strategies which enhanced readership and response.
Would you like your emails to contain these strategies too?
With over twenty five years’ successful marketing experience, helping literally hundreds of UK companies achieve significant growth, Richard can almost certainly pinpoint what’s wrong with your marketing, and explain what needs to change to get better results, without wasting time, money and effort.
If you recognise that, even with the best will in the world, you are not making sufficient progress in your sales generation activities, why not arrange to have a brief chat with me. We’ll discuss what you want to achieve and the stumbling blocks you need to overcome.
We can then decide whether or not there is a good fit between us, and how Richard may be able to help you quickly get your marketing working to drive your business growth over the coming months.
To find out more simply call me on 01692 538800, or email me on firstname.lastname@example.org with a brief explanation of your business goals and challenges.
Blog written by Sally, Marketing Consultant, Richard Lomax & Associates
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colm mulkerrins2nd April 2014
I would like to know what sort of budget did mike have regarding the candles,as i am starting a new bussiness with very little money for marketing.
admin9th April 2014
The email was sent to existing database, I believe using the Mailchimp.com email broadcasting platform which is free of charge for smaller databases.