In the time of Covid-19, many normal business operations are no longer possible. Some businesses shut down, others had to evolve their structure, some even realized new revenue streams.
For food delivery businesses, things changed, but the core business model is resilient. Even so, one in Madison, WI needed to revise its marketing strategy for targeting new university students on campus in the fall.
Each year prior, this business delivered print coupons to dorm rooms and campus buildings as a new customer acquisition effort. With campus buildings closed and new restrictions, the business turned to HyperValue in search of a digital alternative.
HyperValue’s Resolution: HyperValue quickly identified the criteria needed for a successful online version of the coupon promotion:
- Proper technical capabilities to host unique coupon codes online, one per user
- Accurate tracking and analytics system to reliably measure coupon code retrievals, redemptions, and financial value
- High-quality data to accurately identify university students
- Accurate tracking and analytics system to reliably measure coupon code retrievals, redemptions, and financial value
- Low-cost digital marketing channel to maximize campaign profitability
With these criteria in mind, HyperValue provided a recommendation for a low-cost email marketing campaign. Providing a full-funnel measurement approach, the client would see the full impact from the campaign, starting with email opens and drilling down to clicks, coupon retrievals, coupon redemptions, and customer retention rate to measure customer value impact.
Given HyperValue’s intense emphasis on data quality and audience list, the organization quickly acquired a precise list of student email addresses. Under a short time frame, HyperValue also identified a low-cost, high-quality email subscription service with the ability to upload unique coupon codes, with one-per-user restrictions. A total of eight email campaigns were delivered in a two-week window.
Measured Impact: A total of 76 coupons were redeemed the night of the first email blast. Results occurred so quickly, that both HyperValue and its client had to make adjustments to support the unforeseen bombardment of online food orders.
By the end of the campaign, 3,979 coupons were retrieved from the online hosting platform. 1,483 of those coupons were redeemed, for an online redemption rate of 37 percent (in-person coupon deliveries historically resulted in 20 percent redemption rate).
The final cost metrics revealed a profitable campaign.
- Cost per Email Opened: 5 Cents
- Cost per Coupon Retrieved: 16 Cents
- Cost per Coupon Redeemed: 44 Cents
The figures above include HyperValue’s service fees. The client knows that roughly 10 percent of coupon redemptions ultimately lead to new customer acquisition. That metric, paired with customer lifetime value (CLV), indicates that this proper execution of List-Offer-Creative marketing effectively acquired new customers at highly-profitable margins.