Aug 30, 2006
Guerilla Software Marketing -- Email Tactics
to Turn More Trials into Customers
http://www.marketingsherpa.com/sample.cfm?ident=29686#
SUMMARY
Do you want to get more of your software trials to
convert? Or would you like a way to convince your
direct competitor's customers to try your service?
You'll love the practical tactics in this new MarketingSherpa
Case Study. Yes, includes creative samples from automated
email drip campaigns.
CHALLENGE
"My core competency is in online marketing for
technology, but I'm a virtual DJ by night," admits
David Lewis.
When he wanted the latest software to mix his music,
Lewis downloaded trials from seven different software
firms. Then, after the trial he bought his favorite.
The experience came in handy when he landed a job
as SVP Marketing at Ellie Mae's Encompass, a software
firm selling to mortgage brokers. "We had great
traction in the large broker market, people with 50
employees and up. However, the industry is primarily
a bunch of smaller firms, with one to 10 employees.
These are tremendously important professionals for
us."
Although there are thousands of these brokers, as
with most SMB markets, it wasn't cost effective to
send a field sales force to close the account.
How could Lewis convince more brokers to download
a trial and then convert those trials into paying
accounts without involving the sales team?
CAMPAIGN
First, Lewis played actor, putting himself into the
decision-maker's head. He identified three key conversion
activities prospects had to pass through and then
automated drip-marketing campaigns for each one of
them (link to sample creative below):
Conversion #1. Install the file
"One of the main reasons why people don't install
software downloads is because they lost the file,"
Lewis explains. Two keys to help:
- Include your brand in the download file name instead
of using a cryptic code invented by the tech team.
- Include your brand in the icon so it’s instantly
recognizable to prospects as well.
Lewis tied his registered trial download records
together with his install records on the back end
so he could see precisely which trials had clicked
on the "accept" button in the installation
process on their desktop. Then, he created a series
of drip email campaigns to be sent automatically on
a regular basis to all accounts that hadn't installed
yet.
These emails were informational in tone, not salesly.
Topics included step-by-step installation tips and
how to turn off a firewall to install.
Plus, Lewis included a hotlink that went directly
to the download link (bypassing trial registration)
for prospects who had lost the install file on their
desktop and couldn't find it. He also offered users
the chance to request a CD-ROM of the trial via postal
mail in case their firewall was stopping the install
or they wanted an easier way to try the software on
multiple computers.
If the account hadn't installed or replied to any
of the emails in three business days, Lewis automatically
escalated the name in the CRM system so his outbound
telemarketing team could follow up immediately. "According
to our records, you wanted to try the software, would
you like some help getting it installed? We can walk
you through it right now …"
If the prospect hadn't installed within 30 days,
Lewis' team abandoned that lead. Better not to risk
annoying people.
Conversion #2. Launch the file
Lewis' marketing automation system scanned accounts
every day to see which had installed. All that did
were now placed into a second drip campaign, this
time aimed at getting them to actually try the software.
Emails included a “Congratulations, you successfully
installed" note to a formal invitation to Encompass
University, your choice of canned training or "an
instructor-lead course" -- virtual naturally.
Plus, Lewis also sent out webinar invites for training
that read as if a rep dashed them off personally.
The invites also featured the photo of that rep to
bring a personal note to the relationship.
Again, Lewis' back end scanned records to see who
had taken training and who had used the software.
Those who had were placed in a third pipeline for
messaging. Those who hadn't continued to get training
invitations for 30 days.
Conversion #3. Purchase the software
Lewis began his sales messaging with a fairly calm
tone. The emails noted price, a deadline and a few
benefits. Then as time passed and the prospect's trial
end grew closer, the messages became a bit more dramatic
(though still professional) to prompt action.
He tested two different price points in this messaging,
splitting trials to learn which price would get the
most profitable sales.
Next, convinced that his drip campaigns could convert
leads efficiently and effectively, Lewis launched
aggressive outward marketing campaigns, including:
-> Guerilla campaign to subvert the competition
Lewis asked his development team to create a small
application that would be a useful plug-in for the
competitor's software.
Then, he posted a microsite wholly dedicated to offering
the app for free to all and any comers. Why on earth
would you do that? To get your competitor's customers
to register with you as potential leads. (Note: This
was less underhanded than it seems -- Lewis was careful
to respect trademarks and not to imply the site was
operated by an officially recognized partner of the
competitor. This honesty was critical -- otherwise
Encompass' own reputation might have been damaged.)
According to Lewis, Encompass is in a lucky position
because there is only one significant direct competitor.
So, marketing his free app site was easy. He just
rented the postal mail names of every broker in the
industry and suppressed all his clients from it. Many
of the remaining names would ipso facto be customers
of the competitor.
Because the app related directly to the competitor,
Lewis also threw search marketing into the mix under
the competitor's brand name. Key, again he never claimed
to be that competitor and was honest about the brand
he worked for.
Instead of pouncing on the resulting leads immediately,
Lewis' automation program waited for 90 days "until
the relationship was right" to try to cross-sell
the users with a trial offer for Encompass.
-> Direct postal mail campaign
If you can't get prospects to come to your site,
why not send your site to them? Lewis tested an oversized
mailer sent to a carefully targeted list.
The mailer featured a 22-page brochure to help establish
the software's real-world credibility in a tangible
way that Web sites alone just can't accomplish anymore.
"It's lots of white space and beautiful pictures."
Plus, Lewis included a CD-ROM featuring a download
of the trial. Important, the trial worked perfectly
well whether or not the prospect's computer was connected
to the Internet. "They may want to throw it in
their briefcase and watch it when they're not connected."
However, as soon as that user went online while the
trial was active, the program would ping Lewis' system
to let his automation system know the trial had been
activated.
RESULTS
Thanks to the marketing automation campaigns, 88%
of prospects who download the file (or insert the
CD), wind up installing it on their computers. "Most
people install within an hour," notes Lewis.
16% request a CD-ROM to complete their install --
56% because they had trouble with their firewall and
44% because they wanted to install on multiple computers
for a group.
Of all trial installations, 68% take the next step
and either take some training or simply start figuring
out how to use the software for themselves.
Of these, the conversion ranged depending on the
price point that Lewis was testing. When the price
was $195, 10% converted to purchasing. When the price
was $395, 4% converted. This means the lower price
point was 23% more profitable. (Note: This is not
always the case with lower price points. You have
to run the test yourself and never assume lower is
better.)
The guerilla site proved a definite success. Thousands
of prospects registered for the free app download.
Roughly 10% of the users then requested a trial when
they were offered it 90 days later. These converted
at a 5% purchase rate for the software -- roughly
half of what other campaigns did, which makes sense
considering they already owned competing software.
The postal direct mail piece with a CD-ROM just dropped
two weeks ago, so only initial results are in. In
the first week alone, 2% of recipients were tracked
as having begun the trial process. As it's August
and some prospects are on vacation, Lewis expects
results from this campaign to continue trickling in
for a while yet.
However, he is happy to note the cost was lower than
expected. "CDs are only 23 cents apiece if you
do thousands."
Final note -- if you've been able to headhunt a top
sales exec from a direct competitor, consider plastering
his face on as many emails as possible as Lewis has.
Although prospects might not recall his name, the
face may look familiar from past meetings, and hence
your click rates get a bit higher.
Useful links related to this article:
Creative samples of Ellie Mae's campaigns:
http://www.marketingsherpa.com/cs/elliemae/study.html
Eloqua -- the automated marketing and CRM system
Ellie Mae relies on to run and measure this campaign
http://www.eloqua.com
Virtual DJ -- the music mixing software Lewis prefers
http://www.virtualDJ.com
Ellie Mae
http://www.elliemae.com
