In 2012, Twinkie fans taught us an important lesson about marketing: When it comes to company valuation, customer loyalty is king.
Kinesis Strategy Hits it out of the Park: 700% ROI!
I'm very excited today! We're in the final phases of a test marketing campaign for our long time client, Amfit. The results are nothing short of phenomenal.
Despite the tough economy, Amfit took the bold step and launched a new product in a new market. While it seemed like a risky move, Kinesis' marketing analysis and projections helped Amfit see the potential.
In the coming weeks I'll develop a case study for this project. But in the meantime, here's a quick synopsis:
- Kinesis worked with Amfit to define the target industry and lead list. We then calculated the potential profit and lifetime value of these new customers to better formulate a marketing budget.
- Kinesis then developed a strategy to reach out to this list. This included direct mail, personalized URLS, web micro sites, follow-up tracking, and direct sales calls. We created a system whereby Amfit could see - down to the customer - who was responding to their direct-mail and email efforts.
- After developing a system and sales materials, we segmented the lead list and split off 4 "test" groups. These small groups were used as a mechanism for analyzing our delivery system and campaign messages.
The results? Huge Profits. Here are just a few highlights:
- The test marketing program has already more than paid for itself. In fact, if you factor in revenue in the coming year, Amfit will see a 700% ROI on the TEST campaign! If you extrapolate even further, factoring in recurring revenue for the next 4 years, Amfit will see a 2900% ROI.
- The test marketing campaign represents less than 10% of the total market opportunity. By extending the campaign to additional prospects, Amfit can grow NEW revenue exponentially. In fact, if Amfit capitalizes on the remaining 90% of the market, this one initiative could grow their company by as much as 70%.
- The campaign uncovered additional new business opportunities: by introducing Amfit to NEW customers, we were able to position the company to see their full line of product services and offerings. These "bonus" profits aren't even factored into the campaign ROI but represent a huge "win" for Amfit.
A special thanks to my amazing design team who created the materials for this great campaign. Sure, we win all sorts of awards for our work, but it's especially rewarding when our clients are able to see the direct "money in hand" benefit to great strategy and design.
If you're interested in hearing more about this story, or how we can help you generate more profits, drop me a line at shawn(at)kinesisinc.com. If you're old school, call my office direct: 503-922-2289. Cheers!