MarketingGeneral Inc.
Your Marketing Solutions Partner
PROJECT CONCEPT DOCUMENT
Client:
SME
Contact:
Denise Leipold/ Joe LaRussa
Account Mgr: Jeremy Griffin
Client #:
Project:
Date:
147
Tooling U Test
2/4/11
PROJECT OVERVIEW
The goal of this project is to test the increased perceive value of adding five free Tooling U courses to
SME membership and the effect it has on both renewal and acquisition rates. The idea behind running
this test is to improve SME’s revenue per order at a very low cost to the organization while at the same
time increasing the overall membership value proposition. The project will be broken into two tracks:
-Acquisition Testing
-Renewal Testing
Acquisition Testing
The first portion of this project will be the acquisition test, where we will compare the results of our
current control acquisition mailing against two new package designs that offer the five free Tooling U
courses. The acquisition effort will be divided into three splits to determine the perceived value of
adding the five Tooling U courses.
Control Mailing (Standard SME Membership)- $125…………………………..65,000
Membership Plus (5 free Tooling U courses)- $150……………………………10,000
Membership Plus Price Test (5 free Tooling U courses)- $175…………………10,000
Results will be analyzed both for overall response rate and for the total revenue generated. The goal of
this test is to determine if adding benefits to the existing SME membership package can increase
response rates and revenue at the same time. The results will help us determine the perceived value of
Tooling U courses in the marketplace and help to develop upgraded membership categories for future
efforts.
Acquisition Timing
The acquisition test will take place during acquisition #12, scheduled to mail 4/18/11. Below is a list
of the initial timeline associated with this test acquisition:
Copy Due………………2/21/11
First Art Proof………….2/28/11
Final Art Approval……….3/15/11
Final Blueline Proof………3/28/11
Pre Email Blast…………...4/8/11
Mail Date…………………4/18/11
Post Email #1……………...5/3/11
Post Email #2……………..5/24/11
Renewal Testing
The second portion of this project is designed to show how increasing the membership dues combined
with adding the benefit of five free Tooling U courses affects the SME renewal rate. The goal here is
to increase the expected revenue of the test group by generating a high enough renewal rate at the new
dues amount.
Renewal Test Design and Timing
Approximately 1,500 names will be selected from members with September 2011 to December 2011
renewal dates to receive the upgraded memberships. The communication strategy will inform these
individuals of their selection to the upgraded membership and provide them with an opportunity to opt
out of the program if they would rather keep their standard membership level. The program specific
touch points will be as follows:
3/1/11- Tooling U live email with login and password
3/15/11- Recommended Tooling U Courses and Monthly Incentive
4/11/11- Recommended Tooling U Courses and Monthly Incentive
5/3/11- Recommended Tooling U Courses and Monthly Incentive
5/23/11- Start Tooling U Satisfaction Survey Calls (reminding about the incentive)
6/14/11- Recommended Tooling U Courses and Monthly Incentive
7/14/11- Recommended Tooling U Courses and Monthly Incentive
8/16/11- Recommended Tooling U Courses and Monthly Incentive
Promotion Incentive:
The email strategy is designed to provide personalized course recommendations and promote the use
of the free courses with the following incentives.
Monthly Drawing- Chance to win a $100 Visa gift card if you complete a Tooling U course before
the end of the month.
Five Course Drawing- Chance to win a $500 Visa gift card if you complete five Tooling U courses
before your renewal date.
This renewal test group will go through the standard renewal process, but the amount due on the notice
will reflect the new membership plus dues rate. The process of pulling the renewal lists will stay the
same for SME and MGI will code the selected names and adjust the dues amount to the new $150 rate.
SME will need to flag these same names internally to adjust the way phone and online renewal
amounts are presented to this group.
All Tooling U communications will be written to give the member an option to opt out of the upgraded
membership. If this test proves successful we hope to expand this option to more SME members.
APPROVAL
Please share your comments and suggestions below and if the concepts outlined above meet your
approval sign and date giving MGI permission to proceed. Please contact us at any time to discuss.
Thank you.
Comments:
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Signature for SME
Date: