INDUSTRY: Internet Service Provider

PROFILE:

The client is a leader in providing broadband and dial-up services.

MARKETING OBJECTIVE:

To increase new customer registrations for residential DSL services.

MARKETING INITIATIVE:

Communifax® developed an instant win game and sweepstakes geared toward encouraging new customers to install the hardware and complete the registration process. The Instant Win Promotion commenced in late 2003 and included a game piece in each new self installation kit, encouraging new customers to install immediately and play the game for a chance to win cash.

Additional prizes were available through the weekly treasure hunt game. The weekly game was created to stimulate usage of DSL, while educating customers on the many benefits of the Internet Service Provider’s portal services.

RESULTS:

Throughout the 13-week promotion, approximately 600,000 game pieces were sent out with the self installation kits. The promotion was considered a success based on ROI figures that show gross lifetime (estimated at 23 months) revenue realized from saved customers; the ROI exceeded 800%. Additional analysis has also shown that new customer registration game players are 40 to 80% less likely to churn in the first 30 days than non-game players.

Consequently, Communifax quickly kicked off another promotion in Spring 2004 to run for 16 weeks. During this promotion, 925,000 game pieces were distributed and the prizes were more enticing. New DSL customers received a game piece in their self installation kit. In this promotion, the grand prize package included a high tech home entertainment package valued at $25,000, plus additional bonus offers to encourage customer registration. A program goal of 10% reduction in churn equated to an ROI of 1,030%.That 10% reduction over a 52 week period would equal billings of nearly 20 million dollars.