A financial services company was using a multi-media approach to generate customer leads. During its three-year expansion, the business grew rapidly as market penetration broadened to 500 offices, nationwide. As the geographic expansion came to an end, however, volume and profitability growth flattened. The challenge was to identify whether opportunities existed, within the existing advertising budget level, to improve the return on the client’s media investment and thereby increase company sales and profitability. MPG had developed directional data as to which medium worked best against lead generation; however, previous efforts at collecting individual consumer source data had generated only a 50% customer response rate, thereby making quantifying the cost effectiveness of individual media sources very difficult.
MPG, working with the client’s MIS/IT department, helped design a system to utilize multiple 800-phone numbers to accurately track the cost effectiveness of each and every marketing element and advertising source. Software was developed to allow call center personnel to accurately record the media source for virtually every phone lead. MPG analyzed call data, sales responses and and revenue data and reconciled this with actual media expenses. Based on the implementation of this advertising source tracking system, MPG was able to quantify for the client their actual cost per acquisition (CPA) across over 600 unique media sources … and, as important … create a system to estimate the advertising ROI of each source.
By tracking the lead source for all customers and then computing the actual cost effectiveness of each media source, MPG was able to recommend a strategy to reallocate advertising dollars to the most productive media channels and sources. This allowed for an overall reduction of nearly 30% in media expenditures with no loss in lead count. The resulting advertising savings represented a significant improvement to the company’s bottom line. In addition, over the next three years, MPG assisted in improving the client’s advertising ROI by nearly 50%.