How Amplifon achieved an ROI of £1 to £3 on direct mail campaigns

A pound coin.
How Amplifon achieved an ROI of £1 to £3 on direct mail campaigns
Duncan is an award-winning editor with more than 20 years experience in journalism. Having launched his tech journalism career as editor of Arabian Computer News in Dubai, he has since edited an array of tech and digital marketing publications, including Computer Business Review, TechWeekEurope, Figaro Digital, Digit and Marketing Gazette.

With more than 70 years’ experience and a network of more than 9,500 highly qualified hearing specialists, Amplifon is a leading hearing care provider.

The problem:

Having previously used Partially Addressed Mail to some success, Amplifon was keen to develop a more personalised Direct Mail acquisition strategy to identify the best prospects for their cutting-edge hearing products.

The solution:

Using existing customer data, REaD Group built a bespoke propensity model using its GDPR-compliant UK consumer universe, Prospect. The UK’s most comprehensive prospect database, Prospect provides brands with the right data to engage, acquire and retain prospective customers.

With more than 400 variables, the model is used to refine the targeting and select individuals who are most likely to both respond to Amplifon’s communication, but more importantly, is eligible for the product, and will go on to make a purchase. Using custom-built geo-targeting criteria, Amplifon is now able to direct the prospect to their nearest store, driving up the likelihood of response and providing convenience for the consumer.

The challenges:

There were a number of challenges, firstly around the customer profiling, which REaD overcame with the creation of an acquisition model using REaD data. 

The main challenge, though, was around the customer location vs. the Amplifon store location, and understanding the optimum distance a customer will travel for a hearing test, how this varies by store or region, and how the presence of multiple stores in a region might affect this.

By building bespoke store catchments to look at each store vs. existing customers’ store choice, REaD has been able to build unique catchments at a postcode level to ensure the customer is driven to the most suitable store for them. This also takes into account regional differences so that catchments vary in size where required, e.g. typically more rural areas have a larger catchment. 

The results:

The rolling monthly DM programme is delivering excellent results campaign on campaign, typically returning £3 for every £1 spent. The quality of the prospects responding via DM has also increased exponentially, delivering c. 24% increase in eligibility and associated sales.

Direct Mail is now the preferred channel for Amplifon’s acquisition activity. Increased mailing volumes are planned to capitalise on the success and the model will be refreshed continually, with the targeting refined with each new set of responder data.

Interested in hearing leading global brands discuss subjects like this in person? Find out more about Digital Marketing World Forum (#DMWF) Europe, London, North America, and Singapore.

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