B2B marketing — that is, B2B direct mail marketing — is a classic example of the old adage “You have to spend money to make money.” That’s because the entire practice of direct marketing is judged on a cost-per-lead and cost-per-sale basis.
So it was no surprise to me when I read in Deliver Magazine that Netezza, a company acquired by IBM in 2010, had spent $200,000 on a direct mail marketing campaign that generated a 35% response rate, made approximately $30 million in new sales, and achieved a 150-to-1 ROI.
The article in Deliver’s August 2012 issue “Disguise the Prize” by Bruce Britt tells how Netezza sales wanted meetings with C-level executives to present their sophisticated data warehouse appliance and business analytics. The first concern of the B2B marketing staff at Netezza was getting past the gatekeepers to the CEOs, CIOs and CMOs that are common in the larger organizations they were trying to reach.
Here’s the story that Britt tells of what Will Pringle, a marketing demand generation vice president at Netezza, did:
“Pringle and his team came up with the idea of shipping MP3 devices that featured apps designed to create a sales meeting experience. Pringle tingled at the possibilities. ‘I thought it would be the ultimate direct mail piece if we could immediately catch the attention of C-level executives,’ he says. ‘What if the recipient powered the MP3 player up and the first thing they experienced was a customized video that addressed them by name? The more I thought and penciled everything out, the more excited I became.”
The package consisted of a cylinder that carried no indication of what was inside. This helped the package get past the gatekeeper. Or if the gatekeeper opened the package first, that person would immediately see the value of the enclosed gift and pass it along to the executive. Inside was a personal letter, business card, and the player.
“A few days after the initial packages were shipped, Pringle’s team started putting in calls to his target C-level executives.’Within the next two to three weeks, we secured seven meetings out of 15 — an almost 50-percent success rate,’ Pringle says.’In many cases, we had attempted to meet with these companies for years, and this was the piece that opened the door.”
The success of this campaign was not only based on creative thinking on the part of Pringle and his marketing team, but on the mathematics, i.e. B2B marketers should calculate what a new sale is worth and then how much they are willing to invest in making each sale.
In this case and in many others, the investment is worth every penny.