Best practice from eCircle
Volvo is complementing its existing marketing mix with email marketing. Research has shown that Volvo customers and prospects gather information and research online prior to making purchases and therefore the most natural means of communications with these contacts is via email.
As a result, a continuous communication with customers is vital and a high value is placed on personal contact which is best maintained via email or letter.
Objectives and Strategy
Volvo had several objectives for its new marketing drive. Firstly, it wanted to measurably increase the response rates of all marketing tools. Volvo has numerous new car models and wanted to use email marketing in order to generate interested prospects to test drive them.
Through email commercials, they were intending to address and target specific car buyers. Finally, Volvo wanted to increase response rates of its campaigns as well as interest in its model newsletter.
Video campaigns and activity-oriented customer newsletters were developed. These were not sent out en masse – eCircle supplied 100,000 email addresses from its permission database which were all screened in terms of age and area. Volvo wanted to target their campaign to people aged 30+ and who lived in urban, metropolitan areas.
Implementation & Campaign Execution
Volvo believed that a target specific approach was imperative in marketing and therefore selected eCircle to help implement the campaign as it was able to provide a complete email marketing solution.
eCircle sent out three specialised newsletters to market the c30, v70 and s80 Volvo models, in addition to a general customer newsletter.
Central to its email marketing program is eCircle’s email marketing software eC-messenger, which allowed Volvo to segment complex selections and provided an extensive post-campaign success analysis of the newsletters and campaigns.
Volvo designed a video campaign with the tagline “Meet the Man of your Dreams”. They tested the concept of using the same campaign twice: once in a TV advert and then once again in a video email campaign which was sent to a third party list.
The objective of the campaign conceived by eCircle was to generate interest in test drives of the new Volvo models as well as taking advantage of the associated branding effects, which was why a target specific approach was particularly vital for this campaign.
Some 100,000 email addresses from their specified target group were selected from eCircle’s permission database.
Volvo was pleased with the above average results that were achieved. Opening rates of 48% and click rates of up to 20% are now common in their statistics. Even these impressive results were out-performed by the one-off newsletters which delivered opening rates of up to 82% and click through rates of up to 60%.
The results display how target specific marketing is far more successful than other forms as it focuses its communications on the needs of an individual set of customers and prospects.
The case study demonstrates that, for targeted, group specific marketing communications, email is a key channel. Companies need to embrace and engage with online marketing as it offers a range of tools by which they can complement and enhance their existing marketing mix.
Oliver Engling, Head of Advertising and CRM at Volvo Cars (Germany,), said, “Up to 8 out of 10 recipients regularly read Volvo’s newsletter. Relevance is the key to success.”
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