Dissent Over Incentives
THERE ARE worse ways to build a database online than with bribes, especially if a site’s purpose is data collection first and e-commerce second.
But greasing prospects’ palms may not be necessary for OAG. The travel guide publisher found that 73% of the individuals who purchased a subscription to its monthly Pocket Flight Guide through its Web site (www.oag travel.com) voluntarily completed the same survey as those who received a free sample issue.
Since starting the program last October, OAG noticed a difference between those who requested the free guide and respondents who signed up immediately. The free trial folk tend to be younger than OAG’s typical subscriber and travel less frequently. While 60% of the Pocket Flight Guide’s subscribers travel more than 20 times a year, only 20% of the trial-copy requesters did so. Subscribers also tend to belong to more frequent flyer clubs.
The Townsend Agency Ltd., a Rosemont, IL direct marketing concern, maintains the database and collaborates with OAG in modifying the survey process. According to Townsend’s analysis, the Internet has proven to be an effective way to raise survey completion rates, compared with the company’s direct mail efforts.
“People are willing to give information if it’s electronic,” claims OAG corporate direct marketing manager Carole Courtney. “It is seamless to the process. They were already giving information as part of [ordering].”
They may be better candidates as well. A postcard mailing that included the qualifying questions offered an option of completing the survey on the reply card or going online to do so. While only 5% of the prospects went online, 80% of those who did qualified for the free copy, compared with 65% of those who mailed back the card.
By building a file of travelers, the company will be able to offer products-including quarterly (rather than monthly) updates, hotel information and electronic flight schedules-to those who don’t travel enough to qualify for the free guide.
Analysis of the program may result in wholesale structural changes, such as making the process for receiving the free trial book more stringent.
“We did some outbound telemarketing to numbers provided by the free-trial requesters. The numbers tended to be wrong numbers,” says Courtney. Ultimately, 60% of those requesting the free trial book don’t pay for it.
But the program’s benefit goes beyond data collection. The site also allows OAG to offer quicker fulfillment, and may-final numbers aren’t in yet-cut down bad-debt rates among those not providing a credit card number with their order.
“Pay-up rates will improve with the immediacy of receiving the [Pocket Flight Guide],” Courtney says.
