Is there more to consensual marketing than just receiving permission to send an e-mail newsletter? Yes, according to Hewlett-Packard. The company has been testing a program that actively researches its customers' needs, engages them in meaningful relationships and improves the effectiveness of their go-to-market tactics.
Through this program, Hewlett-Packard's OpenView management software generated 2.6% lead response rates – 13 times the company average – with lead conversion rates of 18%.
Hewlett-Packard reaches 6,000 accounts through Technology at Work, a personalized newsletter that demonstrates a full range of the company's programs. The technology company used voice of consumer research to fill in essential parts of its database, including company; industry and sub-industry; product ownership; interests; job title; and location.
Using these, it was able to create 13 versions of Technology at Work, including six targeted to specific industries and seven geared toward individual accounts. The company tracks open, readership and click-through rates, allowing it to evaluate how effective it is in finding relevant content for its readers.
Hewlett-Packard used an extensive customer contact program to fill in the blanks within its database. Efforts ranged from e-mail solicitations of data – with an explanation of what it would be used for – to telemarketing efforts to the most valuable customers.
While a good deal of the information was relatively easy to determine, job responsibility proved to be among the harder fields to fill, according to Alisa Marienthal, the company's 1 to 1 program director. But it was also among the most essential in determining which content would be most relevant to the targets.
Product usage data allowed Hewlett-Packard to further segment recipients. When the company wanted to tout versions of its OpenView management software suite, it divided recipients based on the version of the products they were using, and either offered to upsell them to the latest versions, or offer training or modules that would maximize the advantages of the software.
According to Marienthal, Technology at Work's content influenced $8.2 million in purchases within four months. Furthermore, the information the newsletter provided reduced calls to the company's contact center, resulting in a savings of nearly $58,000.
These contacts have already demonstrated a stronger relationship with the technology firm: Among 300 people invited to offer input on a new product, 57% expressed interest in offering their opinion, and 9% actually responded – 45 times the company's usual rate for such invitations.
Consensual marketing is the brainchild of Ernan Roman Direct Marketing. Company president Ernan Roman and Hewlett-Packard's Marienthal described this program during the Direct Marketing Days New York conference.
