Situation
Nestle Good Start baby formula faced overwhelming competition from two brands that were division of pharmaceutical companies and controlled over 80% market share. Rather than trying to make in-roads with hospitals and physicians (key influencers), Nestle’s strategy was to build a direct relationship with expecting and new moms.
Strategy
A holistic relationship marketing program was developed to provide expecting and new moms with comprehensive resources, information, and tools on parenting and infant nutrition. The content was delivered online, via a custom publication, and through email. The creative was developed to create an approachable tone – much different than the clinical tone of the competitors.
Results
The program drove significant increases across all metrics and was responsible for a boost in sales and market share.
Situation
Busch Entertainment Corporation (BEC) operates a number of theme parks under the Busch Gardens and SeaWorld brands. SeaWorld California, located in San Diego, faced a particularly competitive marketplace, including competition from traditional rivals – Disneyland, Universal Studios, Six Flags, Knott’s Berry Farms, Disney’s California Adventure and the San Diego Zoo – as well as competition from other leisure activities. Key competitors have invested millions in new capital attractions while becoming increasingly reliant on discounting in order to attract new customers. Disney and Universal in particular are aggressive in using promotional offers to acquire customers.
SeaWorld needed an emotionally compelling renewal campaign to build loyalty and retain annual pass holders.
Objectives
The main goals for SeaWorld California were:
- renew annual Passport members at a premium price
- maintain a high quality, educational consumer position
- creating an emotional connection with Passport members to reinforce brand affinity
Solution
The marketing strategy synthesized SeaWorld’s unique brand position with a comprehensive customer segmentation to deliver highly relevant marketing communications. A lifestyle customer segmentation was developed based on 100+ demographic and lifestyle data attributes. The segmentation algorithm was applied to the entire SeaWorld database in order to provide key consumer insights. From those insights, a renewal campaign was developed to encourage passmembers to renew their annual pass. Key communication objectives were established to resonate with each segment – in particular, by appealing to emotional motivators for customer behavior.
A 2 contact campaign was developed to drive passport renewals. Creative was tailored to each segment both in imagery and copy for maximum relevancy and effectiveness. Unlike past campaigns, creative focused on the guest experience – how guests interact with the park and each other – rather than the attractions per se. In this way, the creative triggered emotional motivators within the target audience, prompting them to renew their passports.
Results
Program results were outstanding. The new, targeted creative approach led to a 12 point lift in renewal over the control group.
Background
State Farm is the nation’s leading P&C insurer, while also offer life insurance, health insurance, and banking products. State Farm faces an increasingly difficult competitive landscape. Direct sellers have gained market share and due to regulatory changes, financial institutions have entered the insurance market. Additionally, the internet has given consumers ready access to a plethora of information, allowing for easy price comparisions. Today’s customers are increasingly time starved, price focused, and overloaded with information State Farm and their agents needed to differentiate themselves in the market – through a commitment to personal service, relationship-building, and expert risk management and financial planning advice.
Objectives
- Improve customer retention rates
- Cross-sell additional products
- Generate referrals of new prospects
Challenges
- Counteract competitive in-roads by direct sellers and new entrants
- Overcome price differential in the face of improved customer information
- Show the value of the agent through relationship marketing efforts
Solution
A comprehensive series of direct marketing programs were developed – all aimed at create a 1-to-1 connection between the customer and agent. Modeling was used to target communications and variable data was employed to increase the relevancy of each contact. Examples of programs employed:
-Churn intervention
-Life insurance cross-sell
-Prospect referral
Results
The programs were successful across all metrics
- 4 point reduction in customer churn
- 68% incremental lift in cross-selling
- Generated incremental referrals of 235% compared to the control
Situation Overview
Wells Fargo Home Mortgage company faced intense competition for mortgage loans and re-financing of existing loans. Competitors includes large banks and mortgage companies and local mortgage brokers. Wells Fargo, with a strong west coast retail banking presence, enjoyed strong regional brand recognition, but had less recognition and trust out-of-footprint.
At the same time, typical customer communications focus on “the deal” as a means of closing a loan. Wells Fargo sought a different approach, viewing the sale as the start of the relationship – not the end of it.
Objectives
- Differentiate Wells Fargo from other financial institutions
- Reposition the mortgage process as the start of a relationship – not the end of one
- Increase retention and cross-sell other products
Solution
An umbrella brand strategy was developed to position Wells Fargo Home Mortgage as an on-going partner in financial planning rather than a loan servicer. For example, Wells could provide counsel on how to leverage your home as an investment to meet your financial needs (e.g. equity can fund college), rather than simply being viewed as your biggest monthly expense. The At Home brand campaign focused on the emotional benefits of home ownership (family, security, accomplishment). To further infuse relevancy into the campaign, communications were tailored by attitudinal segment and home-buyer status. A comprehensive communication plan was built to support both pre-close and post-close contact.
Results
The At Home campaign led to cross-selling of additional production (HELOC, home equity loans, etc.) and incremental revenue for Wells Fargo.
