Case History: Watchfire Reaches Out to Dealers
Watchfire reaches thousands of people a day through its large LED displays. But it uses a different medium to reach sign dealers who sell its products—the e-mail newsletter.
The firm launched its ifire e-zine in 2001. It already had a print version of ifire, but it wanted to take advantage of the lower cost and tracking abilities offered by e-mail.
However, there was one problem. While Watchfire had an active client list of roughly 10,000 stores, it only had 450 e-mail addresses for them, according to Darrin Friskney, director of account services for WilliamsRandall Marketing Communications, which created and manages the newsletter.
That had to be changed, so Watchfire launched a two-month subscription campaign, using six print ads. A white paper was offered via a business reply card or online at a unique URL. Both avenues presented sign dealers the opportunity to opt in to the Watchfire e-mail list. Those requesting the white paper also received links to Watchfire products and dealer support tools.
In seven weeks, Watchfire’s e-mail opt-in list grew from 450 dealers to over 1,000 and the e-mail campaign generated leads projected to be worth $1.2 million. But equally important was the collection of profile data. Previously there were no profiles of the 450 addresses and all recipients received a blanket e-mail.
But now the firm uses what Friskney calls “drip irrigation” to obtain profile information. “When people sign up for the newsletter, we’re not burying them with 40 questions because they won’t sign up with complications,” he says.
Initially, a Zip code is requested for the white paper offering. Then other incentives are offered for two or three more pieces of data. “We’ve got people in different stages of profile,” Friskney adds. “It’s drip irrigation because we don’t turn the faucet on—it’s a long-term process.”
The data collected from sign dealers includes answers to questions like this: “What kind of end user do you sell to?” If the answer is a church, then dynamic content can be delivered such as a testimonial or church-specific info. If it’s an auto dealer, then dealer testimonies and success stories are in the newsletter which is sent out on the reps behalf.
“Relevant dynamic content is much better than batch and blast,” Friskney continues. “Right now we’re targeting based on Zip code and end-user business type, and the types of info that they would find helpful. So with the stores’ Zip codes, we can send newsletters on behalf of the sales rep to end users in their area.”
Reaching the End User
Watchfire’s monthly newsletter features a photo and contact information of the area’s Watchfire rep. It also includes content focusing on industry information, new dealer rewards, feedback requests and an invitation to get a user name and password to access the Watchfire dealer site for more educational information, and dealer advocacy.
Open rates on these e-mails are in the 50-60 percent range, with clickthroughs between 10% and 15%, according to Friskney.
“A sign dealer could sell anything from a big piece of granite chiseled with someone’s name to the LED sign including fiber optic cable,” he says. “Some could fear the programming and technology. So Watchfire needs to help the end dealer overcome discomfort and go for the LED by giving them more knowledge.”
Newsletter Benefits
Watchfire and WilliamsRandall use ExactTarget’s WebTrends 7, which allows it to view general site traffic information, track downloads, perform scenario analysis to track how each landing page version fares in terms of conversions, and other metrics.
But it’s still difficult to track sales. “It’s not like buying a pair of shoes,” says Friskney. “It’s a relatively expensive capital product with a long sales cycle—the average is between $20,000 and $60,000, but like a car they can go lower and higher.”
What can be tracked is the performance of ifire subscribers versus non-subscribers. Friskney expects that over time, subscribers will be better and more enthusiastic about Watchfire, more loyal and better salespeople.
Meanwhile, the hardcopy ifire newsletter, which has a circulation of 3,000, is being phased out through attrition.
Getting Past the Gate
As with everyone else, spam poses a problem for Friskney—especially since they have offerings. However, he says a huge advantage is ExactTarget’s Content Detective program. “Not only do they maintain a relationship with all the big ISPs to make sure we’re maintained and white listed, they have a copy flagger software that picks up high profile spam words, such as free,” he says.
So Friskney has learned ways to get his point across without using “flagged” words. “We’ve become smarter,” he said. “Sometimes we make it a graphic rather than put in text that can be read by a computer. Or we may say complimentary or use another synonym for free.”
The Biggest Challenge
According to Friskney the biggest challenge has been developing new relevant content. “Until people start to develop their profiles, we don’t know where their needs are,” he says. “We just have guesses.”
How does Watchfire get around that? incoming profile data so appropriate content can be developed. It’s one of the only parts of a campaign that’s not self-sustaining or automated, he says.
Lessons Learned
Friskney cites one advantage of tracking as the ability to know the cost of a new lead. “We’re using what we’ve learned from a cost per lead on this campaign and comparing that against more traditional lead generation sources as a benchmark,” he says.
On that basis, e-mail is the clear winner. But some people prefer to be contacted by direct mail, others by telephone, so Watchfire, a unit of Time-O-Matic, accommodates them. “You just have to find the right communication vehicles,” Friskney says.
